Exercise CIT - Merged
Exercise CIT - Merged
Exercise CIT - Merged
In an enterprise in the CIT year, there is the following information (Unit: million VND):
1. Sales of products (excluding VAT): 50,000.
2. Expenses declared by the enterprise to determine taxable income: 45,500, of which:
+ Expenses for investment in construction of canteen in the enterprise: 500
+ Payment of loan interests for production and business: 7,200, of which interest payments to
commercial banks: 6,000, the rest to employees in the enterprise with interest rate of 10%/year.
+ Loss of exchange rate due to reassessment of foreign currency receivables at the end of the
fiscal year: 400
+ Donating equipment for Bach Mai hospital: 200
+ Cost of telephone and stationery: 600
The remaining expenses are deducted.
3. Other incomes:
+ Income from the sale of property 250. Remaining value of property 145. Expenses related to
the sale 5.
+ Incomes from domestic joint ventures (tax paid at the place of capital contribution): 200.
Requirements: Calculate the CIT payable for the year. Know that:
- The enterprise applies the standard CIT rate.
- The enterprise has fully contributed its charter capital.
- The basic interest rate announced by the State Bank of Vietnam at the time of loan is 6%/year.
- The enterprise has no carried forward losses from previous years.
- The enterprise does not set up a science and technology development fund.
- The enterprise's expenses have legal invoices and documents and the payment is non-cash.
Exercise 2:
In an enterprise in the CIT year, there is the following information (Unit: million dong):
1. Sales of products (excluding VAT): 12,000.
2. Deductible expenses declared by the enterprise: 9,000, of which:
+ Depreciation of fixed assets of garage according to the prescribed regime: 50.
+ Salary payable: 2,000, until the deadline for submitting the annual tax finalization dossier,
actually paid 1,800.
+ Clothes allowances in cash: 300.
+ Spending for facilities of one university: 850.
+ Direct welfare payments to employees: 200.
The remaining expenses are deducted.
3. Other income:
+ Income from a contract to perform agricultural product harvesting services 100. This is the
second year of income.
+ Incomes from domestic joint ventures 1,000. This is the income received after tax at the rate
of 10%.
+ Income from property rental 120; depreciation and maintenance costs of leased assets 30.
Requirements: Calculate the CIT payable for the year. Know that:
- The CIT rate applicable to this enterprise: 20%.
- All expenses of the enterprise have legal invoices and vouchers and are not paid in cash.
- The enterprise has 50 employees.
- The enterprise sets up a salary fund of maximum rate as prescribed by law for the following
year.
- The enterprise has no carried forward losses from previous years; not setting up science and
technology development funds.
Exercise 3:
At a joint stock company in the year of CIT calculation, the following data are available (Unit:
million VND)
1) Sales excluding VAT: 90,000.
2) Expenses declared by the enterprise to determine taxable income: 75,800, of which:
- Depreciation of fixed assets is 300, of which 40 is depreciation of a fixed asset that has been
fully depreciated but is still being used for production and business.
- Importing materials, import tax calculation price is USD 45,000. All of these raw materials
are used to produce products, of which ¼ of these products are still in the warehouse.
- Expenditures on employees allocated to products sold:
+ Salary of employees (This is also the salary fund as the basis for paying compulsory
insurance): 5,000.
+ Compulsory insurance and trade union expenses with rate 23.5%
- Expenses for building tennis courts: 120.
- Internal medical expenses: 60.
- Spending on scientific research 130 (taken from the Fund for Scientific Research and
Technology Development).
- Deduction for major repair costs of fixed assets: 100, repair costs incurred in the year: 50.
- Expenses for services purchased from outside are deducted according to the provisions of law:
15.
- Expenses for paying fines for violations of the Law on Environmental Protection: 50.
- Taxes and fees payable: 25.
- Other incomes:
+ Bank deposit interest: 60.
+ Income from domestic joint venture activities (not yet paid CIT at the place of capital
contribution): 120.
+ Revenue from the sale of unused assets (excluding VAT) 70, the residual value of the property
at the time of sale 30, expenses related to the sale 5.
Requirements: Calculate the amount of CIT that the business must pay in the year. Know that:
- The import tax rate for raw materials is 20%, the VAT rate for purchased goods and services
and for sold products is 10%; enterprises apply the CIT rate of 20%;
- Exchange rate 1USD = 22,000 VND;
- During the year, the enterprise has no product export activities;
- The balance at the beginning of the year on the enterprise's scientific research and
technological development fund is 300;
- This year, the enterprise does not set up a fund for science and technology development.
- All of the above expenses have lawful invoices and documents;
- The loss of the previous year of the company carried forward to this year in accordance with
the law is 80. Enterprises are not entitled to CIT exemption or reduction.
Exercise 4: We have data from X company in the year 2023 as follows: (unit: VND million)
1. Gross turnover excluding VAT is 150,000
2. Total declared expenses are140,000 of which:
- Donation for poor patients health care fees given through The Vietnam Red Cross
Foudation: 100
- Life insurance fees for employees (the labor contracts and all documents of
company are silent about this) paid to an insurance company: 400
- Expenses for laborers’ uniform in- cash: 350
- Expenses for laborers’ uniform in- kind: 500
- The amount of depreciation of 5-seat cars in excess of VND 1.6 billion of historical
cost: 300
- Penalty for late payment of tax: 25
The rest expenses are deductible
3. Income from a domestic joint venture on which the CIT have been paid: 150
4. Last year’s loss: 200
Required: Caculate the CIT payable amount by this company for the tax year.
Given that:
- All of the expenses are supported with sufficient legitimate invoices or vouchers.
Bank payment was applicable to all transactions of the company. This company was
granted permission for passenger transportation. Compulsory insurance payments
have been fully paid.
- Company has 80 employees. CIT rate is 20%