Professional Documents
Culture Documents
1. Category “B” taxpayers includes, unless already classified in Category “A” Taxpayer
2. share company, PLC and public enterprise taxpayers are Category “C” Taxpayers
3. Every person deriving income from interest on deposits shall pay tax at the rate of 5%.
4. Business that have separate legal personality regardless of their annual sales revenue.
5. Turnover tax is payable on goods supplied and services rendered by persons not registered for VAT
Part II Choose the correct answer for the following given alternatives
Workout
1. During the VAT period, Jupiter shop (which is vat registered person purchase goods worth
of birr 120,000, including VAT with a 15% VAT rate and sales goods at birr 138,000 excluding
VAT with a 15% VAT rate.
Find the VAT payable/refund
2. An importer brought in an electronic. Duty paying value of the imported item is birr
102,000. Custom duty rate is 30% and excise tax rate is 75%. The imported item is subject to
VAT at the rate of 15%.(4point)
Require:
Calculate
A, custom duty tax
B, Excise tax
C, VAT
B. Part I Match The following with Column A to Column B
A. B.
1. Category “C” Taxpayer A 0(zero) while the maximum is 35
2. 2.50 B. 15% of the annual gross income
3. VAT payable: C. annual turnover is estimated at
Br 500,000 or less
4. Customs duty the minimum rate is D. If your VAT on sales exceed VAT on
purchase in Given period
5. Tax on Income from Rental of Property E. of normal hourly rate for work on
public holyday
Part II Write if The statement is Correct “True” if write the statement is incorrect “False
1. All type of income like Basic salary, allowance, overtime, bonus and other.
2. Transportation allowance (if it fulfill the criteria for tax exemption) 25% of basic salary or
not more than Br 1,200
3. business profit tax is not the tax imposed on taxable business income
4. Every businessman (except Category “C”) is required to preserve all books of accounts and
other records and documents
5. lotteries, tombola, and other similar activities an example of income from game of chance
Part II Choose the correct answer for the following given alternatives
Workout
1. During the VAT period, shop X (which is vat registered person purchase goods worth of birr
58,000, including VAT with a 15% VAT rate and sales goods at birr 95,000, excluding VAT
with a 15% VAT rate.
Find the VAT payable/refund
2. An importer brought in an Tobacco. Duty paying value of the imported item is birr 70,000.
Custom duty rate is 95% and excise tax rate is 100%. The imported item is subject to VAT at
the rate of 15%.(4point)
Require
Calculate
A, custom duty tax
B, Excise tax
C, VAT