Question

An enterprise producing consumer products in the year of CIT calculation, the following documents are available (in monetary unit: million dong):

1. Product sales: 12,000

2. Deductible expenses declared by enterprises: 9,000. In which:

+ Depreciation of fixed assets of the garage invested and built by the enterprise

is deducted according to the prescribed regime: 50

+ Salary to be spent: 2,000, by the end of the time limit for submission of tax finalization dossiers, the actual expenditure is 1,800.

+ Paying for clothes allownace in cash: 200

+ Financing for the construction of facilities for the Academy of Finance: 850 yen

+ Expenses for advertising, marketing, meetings and receptions declared by enterprises: 1,000

The remaining expenses are deductible when determining corporate income.

3. Other incomes:

+ Income from a contract for harvesting agricultural products 100. This is the second year of income.

+ Income from domestic joint venture 1,000. This is the income received after paying tax at the capital contribution unit with the tax rate of 10%.

+ Asset lease 120, depreciation, maintenance and asset maintenance costs 30. Requirements: Calculating CIT payable in the year. Know that:

- CIT rate applicable to this enterprise: 20%.

- Expenditures of enterprises with legal invoices and documents and non-cash

payments.

- The enterprise has 150 employees.

- The enterprise does not set up a reserve fund to supplement the salary fund of the following year.

- The company has been established and operating for 10 years

Answer 1

To calculate the Corporate Income Tax (CIT) payable for the enterprise, we need to determine the taxable income first. Here's how we can calculate it based on the provided information:

1. Calculate Gross Income:

Product sales: 12,000

2. Calculate Deductible Expenses:

a. Depreciation of fixed assets: 50

b. Salary expenses (actual expenditure): 1,800

c. Clothing allowance: 200

d. Financing for the construction of facilities: 850

e. Advertising, marketing, meetings, and receptions: 1,000

Total Deductible Expenses: 50 + 1,800 + 200 + 850 + 1,000 = 2,900

3. Calculate Other Incomes:

a. Income from a contract for harvesting agricultural products: 100

b. Income from domestic joint venture (after tax): 1,000 - (1,000 * 10%) = 900

c. Asset lease (after depreciation and maintenance costs): 120 - 30 = 90

Total Other Incomes: 100 + 900 + 90 = 1,090

4. Calculate Taxable Income:

Gross Income - Deductible Expenses + Other Incomes = 12,000 - 2,900 + 1,090 = 10,190

5. Calculate CIT Payable:

Taxable Income * CIT Rate = 10,190 * 20% = 2,038

Therefore, the CIT payable for the enterprise in the year of calculation is 2,038 million dong.