YOU SHOULD MAKE ALL CALCULATIONS TO THE NEAREST VND MILLION.(15 MAR...

2. You should make all calculations to the nearest VND million.(15 marks)6 Assume that today’s date is 15 October 2014.SJCS Vietnam Co (SJCS) is a foreign invested company in Vietnam. Mr Kwon, a 50-year-old Korean national, willcomplete his secondment period in Vietnam with SJCS on 31 October 2014. His wife, who is 48 years old, is a full-time housewife and has no income. They have two children, a 19-year-old daughter and a 15-year-old son;neither child has any income.Mr Kwon’s contractual annual employment remuneration package with SJCS (gross of Vietnam tax) comprises thefollowing items:– Basic salary: USD201,600.– Annual bonus: one month’s salary for a full year of services, pro rata for less than a full year.– Performance bonus: to be decided by the company depending on performance.– One return airfare for himself and his whole family (wife and children) to Korea each year: USD1,500 per personfor the return trip.– Tuition fees for his son (in the international school) and for his daughter (in the international university):USD12,000 and USD18,000 per year, respectively.– Accommodation by arrangement directly between SJCS and the landlord, capped at USD2,500 per month.Additional information supplied by Mr Kwon:– SJCS deducted USD1,200 from his salary every month for accommodation costs over the cap.– In May 2014, SJCS paid him a performance bonus for 2013 of USD33,600. This was not declared in hispersonal income tax (PIT) tax return for 2013.– The tuition fees are paid twice a year, in August and December, by SJCS directly to the school and university.50% of the tuition fees were paid at the beginning of the school year in August 2014 and these fees are notrefundable in any circumstances.– In early October 2014, SJCS decided to support Mr Kwon’s relocation costs from Vietnam back to Korea ofUSD8,000. SJCS had provided the same to Mr Kwon when he had relocated to Vietnam in 2010.Required:(a) Calculate, in USD, Mr Kwon’s taxable and non-taxable income in Vietnam for the year 2014. (10 marks)(b) Calculate, to the nearest VND million, Mr Kwon’s total annual personal income tax (PIT) liability on histaxable income. (5 marks)Note: For simplicity, you can disregard the compulsory health insurance in Vietnam applicable to Mr Kwon.End of Question Paper