CASE STUDY

(Tax accounting and Reporting_201105)

Case study 1.1

Enterprise A imports complete 4-seat cars with the import dutiable price of VND 300mil per car.
Rates of import duty (“ID”), special sale tax (“SST”) and VAT are 100%, 80% and 8%,
respectively.
1. Calculate VAT payable for the mention cars?
2. Booking accounting entries?

Case study 1.2

For running a hotel, EYVN have to buy stuffs such as table, chair, stationary, etc. The operation
expense is VND 324,000,000 (with VAT).
EYVN also carries out a promotion campaign for regular customers who stay for over one (01)
year will receive a raincoat from EYVN. The total raincoat expense is VND 432,000,000 (with
VAT).
Calculate VAT input for the above activities? VAT rate is 8% for all items?

Case study 1.3

In September, the income of the Company A includes:

Activity Income
(Not included VAT)

Turnover of software products VND 600,000,000

Turnover of market survey services VND 400,000,000

The total input VAT which are not allocated for each activities are VND 20,000,000.
Calculate the deductible input VAT of the Company A?
Calculate the payable VAT of the Company A in September?

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Note: VAT rate of market survey services is 8% and software product is not subject to VAT;
Company A applied deductive method.

Case study 1.4

A Travel Company provides tours to Singapore for customers. In December year 20X0, it signed
a contract to company AF to provide a company trip (4 days) for the company. The tour will be
on 5th January 20X1 (the service will be completed on 5th January 20X1). Which day is the time
for calculating VAT for this contract.
- Case 1: A Travel company has not issued the invoice for this contract yet in year 20X0.
The invoice was issued on 5th January 20x1.
- Case 2: A Travel company issued the invoice for this contract on 31th December 20X0.

Case study 5
Transportation Company purchased fuel for company’s cars from Petrollimex company on 20th
December 20XX as follow:
- Invoice No 0000890 valued 2.160.000 (including VAT)
- Invoice No 0000920 valued 3.240.000 (including VAT)
- Invoice No 0001001 valued 540.000 (including VAT)
- Invoice No 0001045 valued 5.400.000 (including VAT)
- Invoice No 0001090 valued 5.400.000 (including VAT)
- Invoice No 0001001 valued 5.400.000 (including VAT)
Transportation company paid cash on hand for all those invoices.
Calculate deductible input VAT for those invoices.

Case study 2.1

Booking accounting entries:
1/ Company AB imported products A (A is subject to excise tax) valued at 400.000.000 VND with
1,000 units A. Import tax rate: 50%. Excise tax rate: 65%. VAT rate: 10%. Company did not pay
money for supplier, but it paid the amount of tax via banking
2/ Company AB sold 500 units A above at price of 1.500.000VND/unit for a domestic company.
Customer did not pay money for the company.

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Case study 3.1
In which case is the income payer required to declare personal income tax?
In each case, in which case is company A required to declare PIT monthly or quarterly?
Case 1: Company A is eligible to declare VAT quarterly
Case 2: Company A is required to declare VAT monthly.

Case study 3.2

In 20XX, Ms. A (Tax code: 8329878628) has employment income from Company X and has no
employment income elsewhere.
- So, at the time of tax finalization, could Ms. A authorize company X to finalize PIT?
Knowing at the time of tax finalization, Ms. A is still working at company X.
- Indicate the tax deduction of personal allowance of Ms. A in 20XX?

Case study 3.3

In 20XX, Mr.B (Tax code: 8329878628) has employment income at Company T from 04/20XX
to 12/20XX and has no employment income elsewhere.
- So, at the time of tax finalization, could Mr. B authorize company T to finalize PIT?
Knowing at the time of tax finalization, Mr.B is still working at company T; from 01/20XX
to 03/20XX: Mr. B is unemployment.
- Indicate the tax deduction of personal allowance of Mr.B in 20XX?

Case study 3.4

Mr.Y is a resident individual, has employment income at company T. Mr.Y has 1 child under 18
years old. If in 20XX, Mr.Y does not register of dependent allowance for tax office/ employer,
can Mr.Y reduce the dependent allowance at the time of tax finalization ? Explain?

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Case study 3.5
In 20XX Company A declared VAT on a quarterly basis; In January 20XX, Company A caculated
and deducted PIT of the employees from employment income with the amount of 60,000,000
VND.
Requirement: In this case, Company A has to declare and pay provisionally PIT on a monthly or
quarterly basis. Explain?

Case study 3.6

In 20XX Company B declared VAT on a monthly basis; In January 20XX, Company B caculated
and deducted PIT of the employees from employment income with the amount of 55,000,000
VND.
Requirement: In this case, Company B has to declare and pay provisionally PIT on a monthly or
quarterly basis. Explain?

Case study 3.7

In 01/20XX, Mr. A (Resident individual, a labor contract more than 3 months) has employment
income at Company X. Especially:
- Salary: 20.000.000VND
- Bonus: 3.000.000VND
- Overtime (200%): 2.000.000VND
- Mid-shift meals: 1.200.000VND
- Social, health and unemployment insurance schemes: 535.636VND
- Dependants: 1 (Child under 18 years old)
Requirement: Determine Mr. A's taxable incomes and assessable income in January 20XX?

Case study 4.1

In the accounting book of S Co. for the year ended 30 September 20XX presenting a total salary
expenses of VND5 billion, in which:
 Salary for contracted employees: VND3,5 billion
 Salary for non-contracted employees: VND500 million. However, S Co. could not provide
with proper evidence on the payment of this amount.

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  Remuneration to the BOM (Board of Management) members those who are directly
involved in the business activities: VND500 million and those who are not directly involved in the
business activities: VND200million
 Awards to the employees: VND200 million as the bonus for the renovation ideas during
the year.
Requirement: Determine deductible salary expenses of S Co.

Case study 4.2

Mr N, chief accountant of D Co, has just come back from his business trip to Ho Chi Minh City
for a period of 10 days. His expenses in connection with this trip which are fully covered by D Co
as follows:
 Air ticket: VND3,200,000
 Hotel charges (supported by invoice under his name): VND12,000,000
 Per diem: VND5,000,000 (the capped amount under the Company’s policy is VND300,000
per day).
Requirement: Ascertain Deductible expense for the above case?

Case study 4.3

 In 20XX, Xuan Hoa Company has: Profit before tax: 20 billion
 There are some differences between accounting expenses and deductible expenses:
1/ Initial cost of a fixed assets is 1000million. Its useful life is 5 years, but the useful life from tax
law is 4 years.
2/ Initial cost of a 5 seats car is 2000milion. Its useful life is 5 years
3/ Bad debt provision is 100 million, but it is 50 million under tax law.
4/ Exchange rate difference loss of cash account is 100 million.
5/ Expenses has illegitimate invoices valued 200 million.
Requirement:
1/ Calculating CIT payable for 20XX. CIT rate is 20%
2/ Determine temporary difference (Taxable temporary difference amount and Deductible
temporary difference amount) and Permanent difference
3/ Booking accounting entries which relation to CIT.