Scribd
Upload
694 views

Exercise 2

Mr. A is an unmarried resident individual in Vietnam who received various incomes in 2021 including a salary of $30,000, board membership income of $6,000, dividends of $10,500, and rental income of $24,000. To calculate his taxable income, his salary, board income, and $2,000 of interest are subject to Vietnam's personal income tax rates. His total taxable income is VND874 million from salary and VND241.5 million from dividends. His rental income of $24,000 is also taxable business income.

Uploaded by

Hồng Hạnh Nguyễn
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
694 views

Exercise 2

Mr. A is an unmarried resident individual in Vietnam who received various incomes in 2021 including a salary of $30,000, board membership income of $6,000, dividends of $10,500, and rental income of $24,000. To calculate his taxable income, his salary, board income, and $2,000 of interest are subject to Vietnam's personal income tax rates. His total taxable income is VND874 million from salary and VND241.5 million from dividends. His rental income of $24,000 is also taxable business income.

Uploaded by

Hồng Hạnh Nguyễn
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 8

Exercise 2

From the following information, you are required to calculate the taxable income
of taxpayer for the year 2021:
Mr. A, vice director of ASEAN company, is a resident individual. He is unmarried
and has the following incomes:
- Salary and wage from ASEAN Co.: $30,000
- Income from membership of boards of management of HPA company: $6,000
- Dividend received: $10,500
- Interest received: $5,000 of which $3,000 from City Bank and $2,000 from a
household.
- Rental income: $24,000
- Exchange rate applicable for tax purpose: $1 = VND23,000

1. Taxable income for salary


 Salary: $30,000 * vnd23,000 = vnd690 mill
 Income from membership of boards of management of HPA company:
$6,000 * vnd23,000 = vnd138 mill
 Interest received $3,000 from City Bank exempt
 Interest received from a household: $2,000 * vnd23,000 = vnd46 million
Total: vnd690 mill + vnd138 mill + vnd46 million = vnd874 mill
2. Taxable income for other income:
 Dividend received: $10,500 * vnd23,000 = vnd241.5 mill
Total: vnd241.5 mill
3. Taxable income for business:
 Rental income: $24,000 * vnd23,000 = vnd552 mill
Exercise 3
Mrs. Le is a Vietnamese resident for the year of assessment 20XX. Her income
consists of employment income from Vietnam Prudential insurance company and
business income from a book shop.
Financial details related are as follows
- Salary (from Prudential Co.): VND 1.200 million
- Book sales: VND 3.200 million
Besides two sources of income above, in the tax year 20XX, Mrs. Le has VND 10
billion from transferring the house which she had as an inheritance from her parent
5 years ago. This house is next to her residential house on the Cau Giay district.
Required: Calculate income tax payable of Mrs. Le for the tax year 20XX, given
that:
- On 1 August, 2021, she has a prize from Prudential for high-turnover person at
the value of VND20 million. She has contributed VND10 million from her prize to
Hanoi Handicapped Person Association;
- She is married and has 2 children who are studying at a primary school.
I. PIT for salary:
1. Taxable income:
- Salary: vnd1,200 mill
Total: vnd1,200 mill
2. Family deduction:
- Self-deduction: vnd132 mill
- Dependents deduction: 2 * 12 * vnd4.4 mill = vnd105.6 mill
Total: vnd237.6 mill
3. Contributions to charity and humanitarian purposes: vnd10 mill
4. Base income:
Vnd1,200 mill - vnd237.6 mill - vnd10 mill = vnd952.4 mill
5. PIT:
60*5% + 60*10% + 96*15% + 168*20% + 240*25% + 328.4*30% =
vnd215.52 mill
II. PIT for prizes:
- Prize from Prudential for high-turnover person: vnd20 mill
- Taxable income = vnd20 mill – vnd10 mill= vnd10 mill
PIT = vnd10mill * 10% = vnd1 mill
III. PIT for business income:
- PIT Book sales: vnd3,200 mill *1% = vnd32 mill
IV. PIT for income immovable properties
- PIT = VND 10,000 million * 2% = vnd200 mill
 PIT payable = vnd215.52 mill + vnd1 mill + vnd32 mill + vnd200 mill =
vnd448.52mill
Exercise 6
Mr. Long, a resident under the Law on Personal income tax (PIT) of Vietnam has
the following data for the tax year 20XX:
1. Incomes received from ITM Corporation as an engineer:
- Salary before a deduction of compulsory insurance premiums: VND 430 million.
Compulsory insurance fee was deducted by ITM Corporation: VND 30 million.
- Performance bonus: VND 100 million
- Occupational allowance as stipulated by Law: VND 50 million
- Toxicity allowance: VND 40 million
- House allowance: VND 60 million  the company provide or not
2. Other incomes:
- Won a prize on a TV show (Before income tax): VND 100 million
- Dividends after deduction at source of income tax: VND 57 million
3. Personal information: This man is married and has 2 children, a son and a
daughter. His son is 20 years old. His daughter is 15 years old.
Required:
1. What information do you need to calculate Mr. An’s PIT amount payable
under the Law on PIT of Vietnam?  the son still study or work.
2. With your supposition on the above information, calculate Mr. Long’s PIT
amount payable for the tax year 20XX under the Law on PIT of Vietnam.

1. PIT for salary


- Taxable income:
 Salary before a deduction of compulsory insurance premiums: VND 430
million.
 Performance bonus: VND 100 million
 House allowance: VND 60 million (if the company provide in-cash)
Total: VND 430 million + VND 100 million vnd60 mill = VND 590 million
- Compulsory or voluntary insurance premiums: VND 30 million
- Family deduction
 Self-deduction: VND132 million
 Dependent deduction: 2 * 12 * VND 4.4 million = vnd105.6 million (if the
son still studies or has wages vnd1 mill)
 Total: vnd237.6 mill
- Base income = VND 590 million - VND 30 million - vnd237.6 mill =
vnd322.4 million
- PIT = 60*5% + 60*10% + 96*15% +106.4*20% = vnd44.68 million
2. PIT for other income:
- Income from capital investment:
 Taxable income: VND 57 million/ (1-5%) = vnd60 mill
 PIT = vnd60 million * 5% = vnd3 million
- Income from Prizes:
 Won a prize on a TV show (Before income tax): VND 100 million
 PIT = vnd(100 -10) million * 10% = vnd9 million
3. PIT payable = vnd237.6 mill + vnd3 million + vnd9 million = vnd249.6 mill

You might also like