000,000 < G < 80,000,000 30 T = 0·3G – 5,850,000G > 80,000...

52,000,000 < G < 80,000,000 30 T = 0·3G – 5,850,000G > 80,000,000 35 T = 0·35G – 9,850,000Notes:G: Gross income N: Net income T: Income taxNon-resident tax rate on employment income: 20% on Vietnam sourced incomePIT rates on other incomeResident Non-residentInvestment income 5% 5%Capital transfers 0·1% of selling price, or 0·1% of selling price20% on taxable gainTransfers of property 2% of selling price, or 2% of selling price25% on taxable gainRoyalties/Franchises 5% of the income in 5% of the income in excess of VND 10 million excess of VND 10 millionPrizes/Inheritances 10% of the income in 10% of the income in Personal deductions (per month):From 1 January to From 1 July to 30 June 2013 31 December 2013Self VND 4,000,000 VND 9,000,000Dependant VND 1,600,000 VND 3,600,000Social insurance, health insurance and unemployment insuranceRates for the year 2013Social insurance (SI) 7%Health insurance (HI) 1·5%Unemployment insurance (UI) 1%Base salary (per month) for the year 2013The base salary for social insurance, health insurance and unemployment insurance isVND 23,000,000 per monthRates of exchangeThe following rates of exchange are to be used in answering all questions in this paper (unlessotherwise stated):USD 1 = VND 21,500ALL FIVE questions are compulsory and MUST be attempted1 The Chief Financial Officer (CFO) of GVC JSC (GVC), a large Vietnamese company operating in the real estate andvarious other businesses, has approached your company for the provision of tax services. GVC was established about 15 years ago. The main operations of the company include: building villas and apartmentsto sell and to lease, building shopping malls to lease, and providing services related to these activities. GVC has beenvery successful in its core business operations, and has also expanded by investing in various subsidiaries andaffiliates. The CFO has provided the following audited income statement for the year ended 31 December 2013:Items Notes VND millionSales revenue 1/2/3 8,000,000Sales reduction (3,500)––––––––––Net sales 7,996,500Cost of sales 3/4/5 (4,000,000)Financial income 6 1,200,000Financial expenses 7 (1,350,000)Of which: Interest expenses are 1,100,000 Selling expenses (225,000)Administration expenses 8 (970,000)Net operating profit 2,651,500Other income 155,000Other expenses 9 (90,000)Profit before tax 2,716,500Following a review of the break-down of the above items and the documents provided by the CFO, the following werenoted (all amounts are in VND million, except where stated otherwise):