PIT MULTIPLE CHOICE QUESTIONS

1. In a statement of income of a tax payer, there are the following incomes

and remuneration in kind: (a) House allowance in cash; (b) Leadership
allowance; (c) The excessive salaries for overtime work; (d) Occupational
allowance as stipulated by law. What items above are subject to PIT?
A. (a) and (b) C. (a) and (b) and (c)
B. (a) and (c) D. (a) and (b) and (c) and (d)
2. In a statement of income of a tax payer, there are the following incomes
and remuneration in kind: (a) Salaries; (b) Toxicity allowance as stipulated by
law; (c) Bonus for performance; (d) One-off relocation allowance as
stipulated by law. What items above are subject to PIT?
A. (a) and (b) C. (a) and (b) and (c)
B. (a) and (c) D. (a) and (b) and (c) and (d)
3. We have a list of the following incomes and remuneration in kind: (a) The
payment of employer for cars rent to carry their employees from home to
work and vice versa; (b) Danger allowance as stipulated by law; (c) Bonus on
the occasion of National day; (d) Wages.
What items above are not subject to PIT?
A. (a) and (b) C. (a) and (b) and (c)
B. (a) and (c) D. (a) and (b) and (c) and (d)
4. We have a list of the following incomes and remuneration in kind: (a)
Children’s university tuition fee paid by an employer for Vietnamese
employees who work overseas; (b) Pension; (c) Rewards by an employer
named “Engineer of the Year”; (d) National defense allowance as stipulated
by law. What items above are subject to PIT?
A. (a) and (b) C. (b) and (c)
B. (a) and (c) D. (a) and (b) and (c)
5. Which of the following incomes that only the excessive amount of
VND10 million are subject to PIT?
(a) Royalty; (b) Capital Investment; (c) Capital transfer; (d) Winning prizes
A. (a) and (b) C. (a) and (d)
B. (a) and (c) D. (b) and (c)
6. In May 2019, Mrs. Hong, a Vietnamese tax resident won a lottery worth
VND181 million (net of PIT).
The amount of PIT deducted at source by the lottery company for Hong’s
PIT liability is (VND million):
A. 20 C. 18,1
B. 19 D. 21
7. Mr. John, a non-resident taxpayer in Vietnam, won a prize in a game show
on TV of VND60 million (gross income).
The income tax amount payable by Mr. John for this income is (VND
million):
A. 6 B. 5 C. 3 D. 2.5
8. Ms. Duyen Ly is a Vietnamese citizen. During 2019, she received a gross
monthly salary of VND100 million, plus a bonus equal to two months’ salary
in April 2019, relating to her work performance in 2018. Her employer also
paid rent for an apartment for her family at an annual cost of VND240
million.
What is Ms. Duyen Ly’s taxable income tax (PIT) in the year 2019 (VND
million)?
A. 1,200 B. 1,400 C. 1,610 D. 1,640
9. In March 2019, Ms. Huyen paid VND4,000 million to buy a house in Hanoi.
In May 2019, Ms. Huyen sold this house to Mr. Long at VND6,000 million.
What is the amount of PIT that Ms. Huyen has to pay related to the sale of
the above house (VND million)?
A. 120 B. 60 C. 500 D. 400
10. In January 2019, Mr. Lee Tan Hong, a 40-year-old Malaysian citizen, started
his employment in Vietnam for VFC Co, a Vietnamese company. In March
2019, his wife Allan, a 35-year-old Malaysian citizen, suffered an accident in
Malaysia. She was not handicapped, but had to move to Vietnam to live with
Lee from April 2019 to the end of the 2019 year. She had no income in 2019.
VFC Co provided Lee with cash support of VND120 million towards medical
care expenses for Allan in Vietnam during 2019.
What is the total family deduction (in VND millions) Mr. Lee Tan Hong can
claim in the year 2019 relating to his personal income tax (PIT)?
A. 108 B. 140 C. 228 D. 260
11. Mr. Minh is a Vietnamese tax resident. He has two children, a 20-year-
old son who is a undergraduate student in Taichinh University and a 9-year-
old daughter. His mother, 75 year old, has retired with monthly pension of
VND4 million, lives with him. His son doesn’t have any income in 2019. Mr.
Minh declared for 3 dependants when filing PIT return of the year 2019
with sufficient documents as stipulated by law.
What is the total family deduction (in VND millions) Mr. Minh can claim in
the year 2019 relating to his personal income tax (PIT)?
A. 237.6 B. 194.4 C. 151.2 D. 108
12. Ms. Duyen Le, a Vietnamese citizen, works for PMN Co. During 2019, she
received a gross monthly salary of VND30 million, plus a monthly leadership
allowance of VND5 million. In November 2019 PMN gave her a gift in cash
worth VND20 million on the occasion of her wedding. Duyen has no
dependants.
What is Ms. Duyen Le’s amount of PIT payable in the year 2019 (VND
million)? Given that the Duyen Le’s income above is net of compulsory
contributions.
A. 30.6 B. 34.6 C. 42.6 D. 46.6
 CIT MULTIPLE CHOICE QUESTIONS
1. TSC is a production company. On 1 January 2019 TSC purchased a five-seat
car with price exclusive of VAT at VND2.4 billion. The purchase is supported
with legitimate invoice and bank payment note. Under the Ministry of
Finance’s stipulation, the time for depreciation this type of car ranges from 6
years to 10 years. TSC decided to depreciate this car in 6 years.
The amount of depreciation expense deductible for determining taxable
income in 2019 by TSC is (nearest Vietnam dong):
A. 440,000,000
B. 400,000,000
C. 293,333,333
D. 266,666,667
2. TMC is a garment company. In 2019, TMC decided to pay life
insurance for 100 employees with a monthly fee of VND5 million per
employee. This payment is stipulated in TMC’s financial regulation and
supported with legitimate invoices. Bank payment was done for this
payment. TMC has been compliant with all compulsory insurances.
The amount of life insurance expense deductible for determining
taxable income in 2019 by TMC is (VND million):
A. 1,200
B. 3,600
C. 4,800
D. 6,000
3. GM is a trading company. In 2019, GM incurred an interest expense
for loans from GM’s employees at VND14,000 million at the rate of
14% per annum. This expense is supported with legitimate vouchers
and documents. GM’s charter capital had been fully contributed by
December 2018. The base interest rate announced by the State Bank of
Vietnam is 8% per annum.
The amount of interest expense deductible for determining taxable
income in 2019 by GM is (VND million):
A. 14,000
B. 12,000
C. 10,000
D. 8,000
4. GMS is a production company. In 2019, GMS incurred an interest
expense for loans from GMS’s employees at VND15,000 million at the
rate of 15% per annum. This expense is supported with legitimate
vouchers and documents. During 2019, GMS’s lack of charter capital
was VND120,000 million. The base interest rate announced by the
State Bank of Vietnam is 8% per annum.
The amount of interest expense deductible for determining taxable
income in 2019 by GMS is (VND million):
A. 15,000
B. 12,000
C. 10,000
D. 0
5. Duc Thanh Co. ltd (Long Thanh) is a Vietnamese company. All of its
products are subject to VAT. All of its purchases in 2019 were used for the
goods sold and supported with legitimate invoices and vouchers. Bank
payment were done for all purchases of Duc Thanh. Among Duc Thanh’s
total expenses declared for CIT purpose in 2019, there are some as follows:
(a) Wages to employees; (b) Forein contractor’s income tax deduction at
source with gross price; (c) Donation to build the Academy of Finance; (d)
Donation to Hanoi’s Youth Union.
Expenses which are not deductible for CIT purpose are:
A. (b) and (c) and (d)
B. (c) and (d)
C. (b) and (d)
D. (b) and (c)
6. A company paying VAT under credit method rents 10
apartments for 5 years. The price exclusive of VAT for 5 year of
renting is VND 1,000 million and paid all in advance. VAT rate for
this service is 10%. This company chooses to book the cost of the
apartments annually.
The base turnover for CIT is (million dongs):
A. 1,100 B.1,000 C.220 D.200
7. Total expenses declared by a company for a tax year is
VND5,000 million of which:
- Fines for late payment of VAT: VND50 million
- Donation to build a state hospital: VND100 million
- House rent expenses for the year: VND200 million
The rest expenses are deductible. All of the expenses are
supported with legitimate invoices and vouchers and paid
through banks.
The total deductible expenses of the company for the tax year
is (million dongs):
A. 5,000 B. 4,950 C. 4,850 D. 4,750
8. Total expenses declared by a company engaged in production for a
tax year is VND6,000 million of which:
- Life insurance premiums of employees which is silent in the labor
contracts and other documents: VND200 million;
- Non credited input VAT because of late declaration: VND100 million;
- Donation to build houses to the poor as stipulated by law: VND50
million.
All of the expenses are supported with legitimate invoices and
vouchers and paid through banks. The rest expenses are deductible.
The total deductible expenses of the company for the tax year is
(million dongs):
A. 6,000 B. 5,800 C. 5,500 D. 5,450
9. Data on incomes and expenses of a company is as follows:
- Total turnover: VND100,000 million
- Total deductible expenses: VND90,000 million
- Income received from an domestic joint venture (before income tax):
VND600 million
- Net income received from an domestic joint venture (After income
tax): VND400 million
The taxable income for income tax of the company for the tax year
is (million dongs):
A. 11,000 B. 10,600 C. 10,400 D. 10,000
10. Data on incomes and expenses of a company is as follows:
- Total turnover: VND100 billion
- Total deductible expenses: VND90 billion
- Net income received from an domestic joint venture (After income
tax): VND2 billion
- Losses carried forward: VND6 billion
The assessable income for income tax of the company for the tax
year is (billion dongs):
A. 12 B. 10 C. 6 D. 4
11. ABC Co engaging in production has the following data in 2019:
- Base turnover: 100 billion dongs
- Total expenses declared: 80 billion dongs of which:
+ Interest expense corresponding to the lack of charter capital: 2 billion
dongs;
+ Support for the ABC’s Youth Union in organizing its activities: 1 billion
dongs;
The rest expenses are deductible. All the expenses are supported with
sufficient legitimate invoices or vouchers. Bank payments are applicable
to all purchases. Standard CIT rate is applicable to this corporation.
CIT payable amount by this corporation for the tax year 2019 is (billion
dongs):
A. 4.0 B. 4.2 C. 4.4 D. 4.6
12. AC Co engaging in production has the following data in 2019:
- Base turnover: VND120 billion
- Total expenses declared: VND110 billion of which:
+ Office rent paid in advance of 4 years exclusive of VAT: VND4 billion;
+ Donation as scholarship to Ton Duc Thang University: VND1 billion;
The rest expenses are deductible. All the expenses are supported with
sufficient legitimate invoices or vouchers. Bank payments are applicable
to all purchases. Standard CIT rate is applicable to this corporation.
CIT payable amount by this corporation for the tax year 2019 is (VND
billion):
A. 2.8 B. 2.6 C. 2.2 D. 2.0