Exercise 1

Enterprise A in the current tax year has the following activities (unit: million dong):
a. Revenue from sales of goods: 20,000, including the value of returned goods of
2,000.
b. Expenses declared by the enterprise for tax purpose are 16,000 (with legitimate
invoices and documents). Including:
+ Depreciation expense of a 7-seat car (with the primary price of 2.4 billion
VND, used by the Director. The car is depreciated using straight-line method
within the period of 8 years): 300.
+ Expense for building medical facilities for employees: 100.
+ Salary and wages (according to labor contracts): 2,000; in which 400 is the
remuneration of members of Board of Directors (not directly involved in
directing production and business).
+ Efficiency bonuses for employees: 50
+ Personal income tax payable: 150; VAT payable according to credit-invoice
method: 250.
+ Other expenses are deductible.
c. Other incomes:
+ Income from domestic contribution of equity capital to company B; enterprise
A receives its share of income before company B pays CIT: 200.
+ Income from selling a machine with the price of 300, the remaining value of
the machine is 20, the transfer expense is 2.
Calculate the CIT payable for the tax year. Given:
+ The enterprise has sold the returned goods with the selling price of 1,500; the
amount received is not accounted in revenue.
+ The enterprise pays VAT using the credit-invoice method.
+ The efficiency bonuses are not prescribed in labour contracts, finance regulations
or rewards regulations of the enterprise.
+ The CIT rate is according to current regulations on CIT.

Exercise 2

Enterprise X in the current tax period has the following activities (unit: million VND)
a. Revenue from sales of goods: 25,000; including revenue from sales of
Excise-taxable goods of 3,000.
b. Expenses declared by the enterprise for tax purpose are 20,000 (with legitimate
invoices and documents). Including:
+ Depreciation expenses according to current regulations: 800, in which 50 is
the depreciation expense of an operating lease asset and 100 is the
depreciation expense of a lease-purchase asset.
+ Expense for buying life insurance contracts for employees (not specified in
labour contracts): 100
+ Rewards for innovation ideas: 200
+ Efficiency bonuses for employees: 50
+ Work outfits expense in cash: 300
 + Interest expense for a loan from corporation B: 250; the interest rate written
on the loan contract is 20%.
+ Funding for buying study equipment for Kim Lien elementary: 50.
+ Other expenses are deductible.
c. Other incomes:
+ Income from providing harvesting service: 120.
+ Income from a science research contract (this is the 4th year the enterprise
receives income from this contract): 150
+ Income from domestic contribution of equity capital to company B;
enterprise X receives its share of income after company B pays CIT: 300.
Calculate the CIT payable of the enterprise in the tax year. Given:
+ The enterprise has not organized a council for test and acceptance of innovations
and improvements.
+ The efficiency bonus is not specified in the labour contracts.
+ The prime interest rate announced by the State Bank of Vietnam at the time of the
loan contract: 12%; the enterprise has fully contributed its charter capital.
+ The number of employees in the enterprise: 50.
+ The CIT rate is according to current regulation. The excise tax rate of excise
taxable goods is 50%. The enterprise did not receive any tax exemption or
reduction in the tax year.

Exercise 3

AN PHAT Corporation in the current tax period has the following activities (unit: million
VND)
a. Revenue from sales of goods: 30,000; including revenue from sales of
Excise-taxable goods of 2,000.
b. Expenses declared by the enterprise for tax purpose are 20,000 (with legitimate
invoices and documents and do not include the excise tax payable). Including:
+ Depreciation expenses according to current regulations: 500, in which 50 is
the depreciation expense of a machine which has been fully depreciated but
still used for production
+ Material expenses according to production norm (VAT-inclusive): 3,300.
+ Research and development expense: 300.
+ Medical expenses for employees: 50.
+ Expense of renting fixed asset: 400 (prepaid for 2 years)
+ Funding for building houses for the poor: 160
+ Donations for local women association: 10
+ Other expenses are deductible.
c. Other incomes:
+ Income from leasing fixed asset: 200.
+ Income from international investments: 1,200. This is the income after paying
corporate income tax in the foreign country with the tax rate of 40%.
Calculate the CIT payable of the enterprise in the tax year. Given:
+ The company pay VAT using the credit-invoice method.
 + The company does not have a science research and technology development fund;
1/3 of the research and development expense is funded by the Government.
+ Vietnam and the foreign country have not yet signed a tax treaties to avoid double
taxation.
+ The CIT rate is according to current regulation. The excise tax rate of excise
taxable goods is 25%. The enterprise did not receive any tax exemption or
reduction in the tax year.

Exercise 4

HOANG HA Corporation in the current tax period has the following activities (unit:
million VND)
a. Revenue from sales of goods: 50,000
b. Expenses declared by the enterprise for tax purpose are 40,000 (with legitimate
invoices and documents). Including:
+ Salary and wages (according to labor contracts): 5,000; in which 400 is the
remuneration of members of Board of Directors (not directly involved in
directing production and business).
+ Research and development expense: 300
+ Protective clothes expense: 100.
+ Funding for building medical center for the poor: 120.
+ Fines for late tax payment: 20; fines for breaking business contracts: 50.
+ Advertising expenses: 750, in which 50 is expense of market research.
+ Other expenses are deductible.
c. Other incomes:
+ Income from harvesting service: 50.
+ Income from business contract breach: 20.
+ Income from international investments: 800. This is the income after paying
corporate income tax in the foreign country with the tax rate of 20%.
Calculate the CIT payable of the enterprise in the tax year. Given:
+ The company pay VAT using the credit-invoice method.
+ The company has a science research and technology development fund; 1/3 of the
research and development expense is funded by the Government.
+ Vietnam and the foreign country have not yet signed a tax treaty to avoid double
taxation.
+ The CIT rate is according to current regulation. The enterprise did not receive any
tax exemption or reduction in the tax year.

Exercise 5

Enterprise D in the current tax period has the following activities (unit: million VND):
1. The CIT payable determined by the enterprise: 2,000
2. In the list of expenses declared by the company, there are some following
expenses:
+ Depreciation expense of the cafeteria serving employees (according to
regulations): 100.
 + Expense of buying fixed asset: 1,000 (the depreciation expense of the fixed
asset has been accounted in the total depreciation expense of that year).
+ Expense for contribute charter capital of a private high school: 1,000.
+ Expense for funding building a hospital in Muong Nhi province: 2,000
+ Fines for non-compliance with the law: 20
+ Expense for buying life insurance for employees: 100
+ Other expenses are deductible
3. The exempt incomes declared by the company include:
+ Income from agricultural harvesting service: 50
+ Income from the sale of products turned out from production with technology
applied for the first time in Vietnam: 200. This is the 6th year the enterprise
+ receives this income.
+ Income from domestic contribution of equity capital to company A;
enterprise X receives its share of income before company A pays CIT: 300.
Calculate the CIT payable of the enterprise in the tax year. Given:
+ The CIT rate is according to current regulation. The enterprise did not receive
any tax exemption or reduction in the tax year.
+ The life insurance is not specified in the labor contract.
+ All the expenses are with legitimate invoices and documents.