YOU SHOULD MAKE ALL CALCULATIONS TO THE NEAREST VND MILLION

2014. (2 marks)Note: You should make all calculations to the nearest VND million.(10 marks)2 In 2010, Mr Tuy Nguyen, a 50-year-old Vietnamese national, purchased 1,000,000 shares in DBX, a company listedon the Vietnamese stock exchange, for VND12,000 per share. The nominal price of each DBX share is VND10,000.In 2014, Mr Tuy had the following transactions with regard to DBX’s shares:– On 1 January 2014, he received 200,000 shares as a scrip dividend (i.e. a dividend paid in the form of shares).– On 1 April 2014, he sold 150,000 shares for VND18,000 per share.– On 20 December 2014, he sold 400,000 shares for VND20,000 per share.Required:(a) Calculate the provisional personal income tax (PIT) which Mr Tuy Nguyen had to pay during the year 2014when he sold his DBX shares. (5 marks)(b) Calculate Mr Tuy Nguyen’s final PIT liability from the sales of his DBX shares if he is required to pay PITunder the ‘20% regime’ and has all available documents relating to his share purchases. (5 marks)3 MCSP Co (MCSP) is an international supplier of foodstuff processing equipment incorporated in Singapore. MCSPintends to enter into a contract with KCD, a Vietnamese corporation, for the supply of a large foodstuff production linein Vietnam.The expected contract value of the production line will consist of the following (after withholding tax in Vietnam):– Machinery and equipment: USD25 million– Design of the production line: USD2 million– Supervision, installation and training: USD3 millionMCSP is considering whether to make the contract a lump sum contract for USD30 million, or a contract with thevalue of each activity shown separately (as above).MCSP also wants to subcontract a part of the equipment supply amounting to USD5 million to Vietnamesesubcontractors.The whole of the above supplies are in a list of objects subject to value added tax (VAT) at 10% under the VietnameseVAT regulations.According to the draft contract, KCD will bear all the withholding tax in Vietnam in respect of the activities of MCSP.(a) Calculate the foreign contractor tax (FCT) applicable to MCSP Co if the contract value is stated as a lumpsum of USD30 million. (4 marks)(b) Calculate the FCT applicable to MCSP Co if the contract value is shown separately for each activity.(6 marks)Note: You should make all calculations to the nearest USD thousands.4 VCPL Co (VCPL) is a newly established foreign invested company operating in trading activities. VCPL is consideringlaunching a number of promotion campaigns for its products in Vietnam as follows:– Campaign 1: Offer customers one product for free when the customer buys a pack of ten during one month.– Campaign 2: Sell products to customers at a reduced price for five days. The reduced price would be 50% of thenormal selling price, which is equal to the cost of the goods sold.– Campaign 3: Provide customers with a voucher which allows them to claim additional products for free everytime the customer buys products with a value in excess of VND1 million.– Campaign 4: Issue some electronic products such as TVs, or HD players, for demonstrative display, then allowemployees (or customers) to purchase these products at a 30% discount after two months.(a) For Campaign 1, advise VCPL Co of the value added tax (VAT) implications (output VAT and input VAT) andinvoicing requirements if:(i) the campaign is registered with the relevant competent authorities as a promotional activity; and(ii) the campaign is not registered. (4 marks)(b) For Campaign 2 and Campaign 3, advise VCPL Co of the VAT implications (output VAT and input VAT) andinvoicing requirements, if the campaigns have both been registered with the relevant competent authorities.(4 marks)(c) For Campaign 4, advise VCPL Co of the output VAT implications and invoicing requirements. (2 marks)5 WALC JSC (WALC) is a corporation in Vietnam operating in the field of financial consulting services.WALC’s audited financial statements for year ended 31 December 2014 show the following:Notes Amount(VND million)Sales revenue 168,000Sales reduction 0––––––––Net sales 168,000Cost of sales 1 (86,000)Administration expenses 2/3 (38,000)Selling expenses (10,000)Operating profit 34,000Other income 2 10,000Other expenses 1/4 (6,000)Profit before tax 38,000Notes