Exercise 1

Mr. John Smith, a Canadian auditor, worked continously in Vietnam from 01/08/2020 to 31/07/2021.
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...)

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  Winning prizes: (45 – 10) x 10%
payment
1. Resident (because worked continously in Question 4: During the period in Vietnam, after
Vietnam from 01/08/2020 to 31/07/2021) buying MBK’s stock, value of 500 millions of
2. Income from wages: VND, he transfered the above stock to other
- Total income: 30,000 x 22,000 + 15 mil = 675 investors and earned 600 millions of VND,
mil VND transaction cost 20 million. Calculate PIT
- Exempt income: 4,000 x 22,000 + 5 mil (quần payment.
áo) = 93 mil  Security transfer = 600 mil x 0.1%
- Taxable income: 675 – 93 = 582 mil VND
- Deductions: Question 5: As question 4 metioned, if Mr.
+ Compulsory insurance = 0 (Amount of Smith transfered above stock to his father in
compulsory insurance is not consisted of total Vietnam, how would Mr. Smith tax liablity be
salary.) changed?
+ Personal: .Tax payer = 11 x 12 months = 132  Security transfer to father = 600 mil x 0.1%
.Dependants = 4.4 x 4 x 12 months
= 211.2 Question 6: Assume that Mr.Smith had
+ Donations: 0 returned his country 2 months earlier than
- Taxed income = 582 – 132 – 211.2 = 238.8 commitment in contract, with the same amount
- PIT payable = 60 x 5% + 60 x 10% + 96 x15% of earning from employment as question 1, let’s
+ 22.8 x 20% = 27.96 m evaluate his liablity of personal income from
salary if changes?
Question 3: During the period in Vietnam, he
was awarded from a TV gameshow, 45 millions Leave 2 month earlier (về nước sớm 2
of VND (including 20 millions of VND in cash). tháng) = tháng bôi vàng  tính 10 tháng lại từ
Determine tax payment in this case? đầu
Exercise 2
Mr. David Brown, a British tax accountant, 50 years old son and her blind sister with no income. After
old, worked continously in Vietnam as a sole being married, she decided to terminate her
proprietorship, from 01/09/2016 to 31/12/2018. employment and became a housewife. On the
According to legal records, his personal incomes termination she received VND 300 million, being
were received in Vietnam in the tax year 2018 as the settlement of her salary for January 2018. She
follows: did not have any income from 1 February 2018
onwards. On their marriage, Ms Linh Nguyen agreed
- Salary before tax: VND 60 million VND per month with Mr. Brown that he would claim all dependant
- Overtime: VND 150 million (her overtime was reliefs/deductions available to them according to the
consistently paid at 150% of her normal wage). regulations.

- In addition to his employment, Mr. Brown has also - Besides, Mr. Brown was also responsible for his
entered into an employment contract with Hoa Phat adopted son, 23 years old, graduated but still
Corporation as a part-time tax consultant from 1 unemployed and his mother 90 years old, no
April 2018 until he returned to UK. According to the pension. In 2018, he donated 200 million to a
labour contract, a fixed wage of 20 million per qualified centre which cares for handicapped
month was paid, plus holiday bonus of 10 million children.
and working outfits of 8 million. Required:
- In March 2018, he won Vietlott of 200 million Calculate Mr. Brown total Personal Income tax
VND and sold an apartment of 3 billion VND in (PIT) liability in 2018
Vietnam to his mother-in-law. Notes:
1. You should attribute all the deductions to his
During the period in Vietnam, he married his employment.
colleague, Ms. Linh Nguyen, Vietnamese, 30 years 2. Make all calculations in VND millions, rounded
old, a single mom, directly taking care of a 3-year- 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.

1. Resident because works continuously from 01/09/2016 to 31/12/2018.

2. Income = 1,068 mil VND
- Salary = 60 x 12 = 720 mil VND
- Overtime: 150 mil VND
- Emloyment contract (9 months): 20 x 9 months + 10 + 8 = 198 mil VND

3. Tax exempt income: 55 mil VND

- Overtime: 150 x 50/150 = 50
- Outfit: 5 mil VND

4. Deductions: 481.6 mil VND

- compulsory insurance: 0
+ personal: tax payer: 11 x 12 = 132
dependants: (4.4 x 12 months) + (4.4 x 2 x 11 months) = 149.6
- donation: 200 mil VND

5. Taxable income: Income - Tax exempt income = 1068 – 55 = 1,013 mil VND
6. Taxed income: 1013 – 481.6 = 531.4 mil VND
7. PITp = 60 x 5% + (120-60)x10% + (216-120)*15% + (384-216)x20% + (531.4 – 384)x25%
8. Irregular income
Income from Vietlott: (200 – 10) x 10% = 19 mil VND
Income from sold an apartment for mother-in-law: 3 bil VND (exempt income – real estate transfer)
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.

1. Regular income = 690 mil VND

Salary: 600 mil VND
Bonuses: 50 mil VND
Toxic allowance: 30 mil VND
Work outfit: 10 mil VND
2. Tax exempt income = 35 mil VND
Toxic allowance: 30 mil VND
Work outfit: 5 mil VND
3. Deductions = 323.16 milVND
- Personal: taxpayer: 11 x 12 months = 132 mil VND
dependant: 3 x 4.4 x 12 months = 158.4 mil VND
- compulsory insurance: 26 x 12 x 10.5% = 32.76 mil VND
- donation: 0
4. Taxable income = 690 – 35 = 655 mil VND
5. Taxed income = 655 – 323.16 = 331.84 mil VND
6. PITp = 60x5% + (120-60) x10% + (216-120) x 15% + (326.84 – 216) x 20% = 45.568 mil VND
Irregular income
7. Income from scholarship: 200 mil VND (tax-exempt income)
8. Income from winning prize: (100 – 10) x 10% = 9 mil VND
9. Income from inherited: (2,000 – 10) x 10% = 199 mil VND
10. Income from real estate transfer: 2,500 x 2% = 50 mil VND
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.

(1) Total regular income = 610 (5) Taxed income = Taxable income - Deduction
- Salary: 40 x 12 = 480 = 560 - 270.36 = 289.64
- Bonuses: 40
- Overtime: 60 (6) PITp = 60 x 5% + (120-60) x 10% + (216 –
- Toxic allowance: 30 120) x 15% + (289.64 – 216) x 20% = 38.128
(7). Income from insurance compensation: 15
(2) Exempted income = 50
mil VND (tax-exempt income)
- Overtime: 60 x (50/150) = 20
- Toxic allowance: 30 (8). Income from his sons: 200 mil VND (tax-
exempt income)
(3) Taxable income = Regular income – Tax
(9). Income from capital transfer: 40,000 x
exempt income = 610 – 50 = 560
110,000 shares x 0.1% = 4.4

(4) Deduction = 270.36 (10). Income from capital investment: 10,000 x

- Insurance = 26 x 10.5% x 12 = 32.76 10,000 x 5% = 5
- Taxpayer: 11 x 12 = 132 (11). Income from inherited from mother:
- Dependents: 4.4 x 12 x 2 = 105.6 5,000 mil VND (tax-exempt income)
- Donation: 0
(12). Income from real estate transfer = 6,000
mil VND x 2% = 120