[F6 - CIT] Deductible and non-deductible expenses

Which of the following statement is not a condition of deductible expenses?

• A. Related to the production or trading of the company

• B. Supported by valid invoices or source documents as regulated

• C. Transactions >= VND 20 million must be cash payments (VAT-inclusive price)

• D. NOT under in specific list of non-deductible expenses under regulations

Company A has pools and tanks for clean water storage, which are depreciated annually at VND100 million. 70% of them are for the use of all staff of company A. 30% of them are for use by residents living nearby. What is the amount of deductible expense?

• A. VND 100 million

• B. VND 70 million

• C. VND 30 million

• D. VND 0 million

Company B buys a car for the transport of 9 persons or fewer for VND 6 billion. The depreciation period is 6 years according to regulations on fixed asset depreciation. Calculate the deductible expense for 1 year.

• A. VND 267 million

• B. VND 1 billion

• C. VND 0 billion

• D. VND 6 billion

For the tax year 2015, Company C deducted a wage provision fund of VND 10 billion. The Company has just spent VND 4 billion by March 2016 and additional VND 7 billion by end of June 2016 for the wage provision fund of 2015. Company A applies the tax period according to calendar year. How much adjustment for the wage expenses in 2016?

• A. Decrease VND 7 billion

• B. Decrease VND 4 billion

• C. Decrease VND 3 billion

• D. No adjustment

In July 2019 a company borrowed from its individual shareholders VND 1,000 million at the interest rate of 1.8%/month. At the time the SBV's prime rate was 1%/month. Calculate the deductible interest expense for the company in 2019?

• A. VND 90 million

• B. VND 18 million

• C. VND 108 million

• D. VND 60 million

Company D purchases various perishable items from suppliers for resale. The company’s policy is that any item unsold at the expiry date specified by the supplier is collected and destroyed. During the year 2015, the value of the destroyed items reflected in the costs of goods sold amounted to VND1,280 million. Calculate the deductible expense?

• A. VND 1,280 million

• B. VND 0 million

RTM Co frequently issues water and soft drinks from stock for consumption, which are not for sale. The value of consumption for the company's summer vacation and staff use was VND 100 million. Calculate the deductible expense?

• A. VND 150 million

• B. VND 0 million

In 2015, Company E purchased some hi-tech equipment and shortened its useful life from five years (as stipulated in Circular 45/2013 on depreciation) to three years. The depreciation charge for this equipment in the 2015 financial statements was VND600 million. Calculate the deductible depreciation expense?

• A. VND 600 million

• B. VND 0 million

• C. VND 360 million

In 2018, Company G has expenses of VND 2,500 million without supporting invoices, VND1,800 million of this figure relates to the purchase of farming products directly from farmers. These were covered by Form 01/TNDN; however, the company accountant is concerned this documentation is not sufficient for tax purposes. Calculate the non-deductible expense?

• A. VND 700 million

• B. VND 2,500 million

• C. VND 1,800 million