Exercise 1
Mr. John Smith, a Canadian auditor, worked continously in Vietnam from 01/08/2020 to
31/07/2021 (resident). According to legal records, his personal incomes from employment
were received in the period of time in Vietnam as follows:
1. Total real salary: 30,000 USD (including responsiblity bonus: 3,000 USD; holiday
bonus: 3,200 USD; poisonuos bonus: 4,000 USD (tax-exempt income)...)
2. Work outfits are paid by Vietnamese representative: 15 million VND by cash (recorded
in his labour contract). The payment is excluded in total annual salary.
Notes:
- Mr. Smith proved full reliable statements related to family’s situation:
+ A 16 year-old boy & a 21 year-old daughter studying in a college.
+ A 45 year-old wife, labour incapble.
+ A 80 year – old mother in law, having no pension.
- Amount of compulsory insurance is not consisted of total salary.
- No charity in tax year.
- His tax code: 1234567899
- Exchange rate: 1 USD = 22,000 VND
Question 1: Calculate personal income tax payment
1. Resident (because worked continously in Vietnam from 01/08/2020 to 31/07/2021)
2. Income from wages:
- Total income: 30,000 x 22,000 + 15 mil = 675 mil VND
- Exempt income: 4,000 x 22,000 + 5 mil (quần áo) = 93 mil
- Taxable income: 675 – 93 = 582 mil VND
- Deductions:
+ compulsory insurance = 0 (Amount of compulsory insurance is not consisted of
total salary.)
+ personal: tax payer = 11 x 12 = 132
Dependants = 4.4 x 4 x 12 = 211.2
+ donations: 0
- Taxed income = 582 – 132 – 211.2 = 238.8
- PIT payable =
Question 2: Fill in the Personal income tax settlement’s form for income from
salaries.
Winning prizes: (45 – 10) x 10%
Question 3: During the period in Vietnam, he was awarded from a TV gameshow, 45
millions of VND (including 20 millions of VND in cash). Determine tax payment in
this case?
Securities transfer = 600 mil x 0.1 mil
Question 4: During the period in Vietnam, after buying MBK’s stock, value of 500
millions of VND, he transfered the above stock to other investors and earned 600
millions of VND, transaction cost 20 million. Calculate PIT payment.
Security transfer = father: 600 mil x 0.1%
Question 5: As question 4 metioned, if Mr. Smith transfered above stock to his father
in Vietnam, how would Mr. Smith tax liablity be changed?
Question 6: Assume that Mr.Smith had returned his country 2 months earlier than
commitment in contract, with the same amount of earning from employment as question 1,
let’s evaluate his liablity of personal income from salary if changes?
Khác ở deductions – personal
Exercise 2
Mr. David Brown, a British tax accountant, 50 years old, worked continously in Vietnam
as a sole proprietorship, from 01/09/2016 to 31/12/2018. According to legal records, his
personal incomes were received in Vietnam in the tax year 2018 as follows:
- Salary before tax: VND 60 million VND per month
- Overtime: VND 150 million (her overtime was consistently paid at 150% of her normal
wage).
- In addition to his employment, Mr. Brown has also entered into an employment contract
with Hoa Phat Corporation as a part-time tax consultant from 1 April 2018 until he
returned to UK. According to the labour contract, a fixed wage of 20 million per month
was paid, plus holiday bonus of 10 million and working outfits of 8 million.
- In March 2018, he won Vietlott of 200 million VND and sold an apartment of 3 billion
VND in Vietnam to his mother-in-law.
During the period in Vietnam, he married his colleague, Ms. Linh Nguyen, Vietnamese,
30 years old, a single mom, directly taking care of a 3-year-old son and her blind sister
with no income. After being married, she decided to terminate her employment and
became a housewife. On the termination she received VND 300 million, being the
settlement of her salary for January 2018. She did not have any income from 1 February
2018 onwards. On their marriage, Ms Linh Nguyen agreed with Mr. Brown that he would
claim all dependant reliefs/deductions available to them according to the regulations.
- Besides, Mr. Brown was also responsible for his adopted son, 23 years old, graduated
but still unemployed and his mother 90 years old, no pension. In 2018, he donated 200
million to a qualified centre which cares for handicapped children.
Required:
Calculate Mr. Brown total Personal Income tax (PIT) liability in 2018
Notes:
1. You should attribute all the deductions to his employment.
2. Make all calculations in VND millions, rounded to one decimal.
Note: lưu ý trường hợp ng phụ thuộc: 2 người phụ thuộc chuyển sang cho ông này là từ
T2/2018 nên giảm trừ có 11 tháng thôi, và bà mẹ là ng phụ thuộc từ ban đầu nên vẫn tính
12 tháng.
Exercise 3
Mr. Nguyen Van An (Vietnamese citizen), lives in Hanoi and works for a joint venture
company. In 2020, Mr. An has the following income:
. Salary: 600 million VND
. Bonuses: 50 million VND
. Toxic allowance: 30 million VND
. Work outfit (in cash): 10 million VND
. In the tax year, Mr. An was sent to take a short-term training course in Singapore, the
scholarship he received is 200 million VND.
. At the beginning of the year, Mr. An won a cash prize of 100 million VND in a program
organized by Vietcombank.
. In June 2020, Mr. An inherited a building in Hanoi from his uncle. The market value of the
building is 2 billion VND. In January 2021, he decides to sell the building with the price of
2.5 billion VND.
Mr. An currently lives with his wife, 40 years old, no income. He also lives with his two kids
(2 and 5 years old) and his mother-in-law, 60 years old, no income.
The base salary (per month) for social insurance, health insurance and unemployment
insurance, etc. for the year: 26 million VND
Requirement: Calculate the PIT liability of Mr. An relating to his income in 2020.
Exercise 4
Mr. Manh (Vietnamese citizen), lives in Hanoi and works for a joint venture company. In
2020, Mr. Manh has the following income:
. Salary: 40 million VND/month
. Bonuses: 1 month salary
. Wages for working overtime: 60 million VND (Mr. Manh is paid overtime 150% higher
than his ordinary wages)
. Toxic allowance: 30 million VND
. Income from insurance compensation paid by Bao Viet insurance company: 15 million
VND
. Income receive from his son, currently works in Malaysia: 200 million VND
. In 2020, Mr. Manh held 100.000 PVX shares and received 10.000 PVX shares as dividends
for the shares he was holding. At the end of 2020, he decided to sell all his PVX shares with
the price of 40.000 dong/share. The nominal price of PVX share is 10.000 dong/share.
. In June 2020, Mr. Manh inherited a building in Hanoi from his mother. The market value of
the building is 5 billion VND. In December 2020, he decides to sell the building with the
price of 6 billion VND.
Mr. Manh currently lives with his wife, 40 years old, no income. He also lives with his two
kids (2 and 5 years old) and his mother, 60 years old, with pension income of 4 million
dong/month.
The base salary (per month) for social insurance, health insurance and unemployment
insurance, etc. for the year: 26 million VND
Requirement: Calculate the PIT liability of Mr. Manh relating to his income in 2020.
