MULTIPLE CHOICE QUESTIONS – SECTION A OF THE EXAM
A. CIT
1. On 1 July 2014, NLAM Co leased an asset for four years and paid the whole rent of VND600 million in
advance. On 1 July 2017, NLAM Co decided to shorten the lease period to three years. The company
expects that it will have to pay a penalty of VND60 million when it terminates the lease in 2018 in order
to receive a refund of one year of the original lease payment.
What is the deductible expense for NLAM Co with regard to the lease in the year ended 31 December
2017?
A. VND150 million
B. VND75 million
C. VND165 million
D. VND170 million
2. RETRA Co, a company specializing in developing real estate projects, has an apartment and villa
development project in the center of Hanoi, which is expected to be completed in 2020. The estimated
total revenue and profits from this project are VND2,000 billion and VND300 billion, respectively. RETRA
Co has been collecting money in advance from customers and in 2017 the total proceeds received were
VND200 billion, on which provisional tax of 1% was duly paid on receipt.
What is the taxable income from the project of RETRA Co for the purposes of its 2017 Corporate Income
Tax (“CIT”) finalization return?
A. VND0 billion
B. VND30 billion
C. VND200 billion
D. VND300 billion
3. In 2016, SPTF Co incurred losses of VND10 billion from incentive activities which were subject to a tax
rate of 10%, made gains from the transferring of real estate of VND3 billion and had other income of
VND8 billion.
What is the minimum tax liability of SPTF Co in 2016?
A. VND2,420 million
B. VND600 million
C. VND660 million
D. VND0 million

4. HNKV Co is a one-member limited liability company, which is wholly own by HKV, a company
incorporated in Bermuda. In 2017, HKV decided to convert HNKV Co into a joint stock company by selling
the shares of HNKV Co to two local Vietnamese entities. The sale of the shares and the conversion of the
company was completed in August 2017.
Which combination of the following statements correctly describes the reporting requirements for
Capital Gains Tax (“CGT”) and Corporate Income Tax (“CIT”) finalization under the current regulations?
(i) HNKV Co is required to file a CGT declaration
(ii) The buyers are required to file a CGT declaration


(iii) HNKV Co is required to file a CIT finalization return at the time of conversion and at the year-end
(iv) HNKV Co is required to file a CIT finalization return at the year-end only
A. i and iii
B. i and iv
C. ii and iii
D. ii and iv
5. On 1 January 2016, company CRS Co purchased a 16-seat car for VND 2,640 million (including VAT)
with proper invoices. The car will be depreciated for five years.
What is the amount of the adjustment for non-deductible expenses, which CRS Co should make for the
car in its tax return for the year 2016?
A. VND0 million
B. VND208 million
C. VND320 million
D. VND528 million
6. At the end of 2017, BND Co, paid bonuses to its board of directors of VND3,000 million. Each of the
five directors is paid an equal amount of bonus. Two out of the five directors are not involved in the daily
management of the company’s business.
What is the amount of tax-deductible expenses which BND Co will be able to claim for the year 2017?
A. VND3,000 million
B. VND1,200 million

C. VND1,800 million
D. VND0 million
7. In 2016, company CTC Co contributed capital of VND500 million to Company Z. In 2017, CTC Co
transferred 60% of the capital it held in Company Z to a foreign company for VND450 million. At that
time, the retained earnings of Company Z were VND5 million. CTC Co incurred transfer expenses of
VND10 million.
What is the taxable income/(loss) of CTC Co from the transfer?
A. VND50 million (loss)
B. VND140 million
C. VND145 million
D. VND147 million
8. Which of the following statements are correct?
(i) The Vietnamese language shall be the official language used in all tax-related documents to be
submitted to the tax authorities
(ii) Documents in a foreign language must be translated into Vietnamese. All translations must be
performed or certified by an authorized public notary
(iii) Where the documents in a foreign language are more than 20 pages (of A4 size) long, the taxpayer is
allowed to translate only the key provisions relating to the determination of the tax obligations (plus a
written explanation to the tax authorities)
A. i only
B. ii and iii only


C. i and iii only
D. i, ii and iii
9. Company A is liable to pay VAT under the credit method. The added-value invoice contains the
following items:
Selling price: VND 100,000.
VAT (10%): VND 10,000.
Payment price: VND 110,000

What is the turnover for calculating CIT-able income?
A. VND 110,000
B. VND 100,000
C. VND 111,111
D. VND 90,000
10. Current standard CIT rate is:
A. 27% (applicable from 1 January 2014)
B. 22% (applicable from 1 January 2015)
C. 20% (applicable from 1 January 2016)
D. 20% (applicable from 1 January 2014)
11. In 2017, company DMS Co purchased materials from suppliers who are households doing business.
DMS Co wanted to use the list of goods purchased (without invoices) to claim tax deductible expenses
for these purchases.
What is the threshold of annual revenue which households doing business must satisfy for DMS Co to
use the list of goods purchased method to claim for the purchases as a deductible expense?
A. VND300 million
B. VND200 million
C. VND100 million
D. VND50 million
12. When would they determine of VAT/CIT for goods:
A. Transfer of ownership and risk of the goods
B. Money collection
C. Invoice issuance
D. Others
13. In March 2018, DPN Co, a Vietnamese company, disposed of a machine for VND2,200 million. The
machine was purchased in January 2017 for VND3,600 million with an estimated useful life of three
years. DPN Co’s policy (which is acceptable for tax depreciation) is to provide for a full month’s
depreciation in the month of purchase and no depreciation in the month of disposal.
What is the taxable gain on the disposal of the machine which DPN Co must declare for corporate
income tax (CIT) purposes for its financial year ended 30 June 2018?

A. VND100 million
B. VND2,200 million
C. VND0 million


D. VND800 million
14. In February 2018, JTF Co, a Japanese investor, sold its capital contribution in TGT Co, a Vietnamese
limited liability company, to a foreign buyer for USD10 million, when the USD buy–sell exchange rate
from the commercial bank was VND23,000–VND23,200. The original capital contribution in TGT Co was
USD10 million which is reflected in the audited financial statements at an exchange rate of USD1 =
VND20,000. The transfer expenses incurred were immaterial. TGT Co’s functional currency is VND.
What is the corporate income tax (CIT) liability incurred by JTF Co on the sale of its capital contribution
in TGT Co in the year 2018?
A. VND6,000 million
B. VND0 million
C. VND6,400 million
D. VND230 million
15. CGC Co is a Vietnamese subsidiary of CG Group, which is headquartered in Europe. During the year
ended 30 June 2018, CGC Co carried out related party transactions with a total value in excess of VND100
billion. CGC Co is required to file documents within 90 days of the fiscal year end in respect of these
transactions.
Which of the following combinations correctly states the related party transaction document filing
requirements of CGC Co?
TP form No. 01
Local file
Master file A
A
Prepare and submit Prepare and submit
Prepare only
Prepare only

B
Prepare and submit Prepare only
C
Prepare and submit Prepare only
Not required
D
Prepare only
Not required
Not required
16. SIV Co is a Singapore company. In 2012, the company purchased shares in LST JSC, an unlisted
Vietnamese joint stock company, for VND22,000 million (equivalent to USD1 million at that time). In
2018, when LST JSC’s shares were listed on the Vietnamese stock exchange, SIV Co sold the entire
shareholding for USD2 million.
What is the amount of tax (in VND million) which should be deducted before the proceeds from the sale
of the shares can be remitted overseas to SIV Co?
A. VND47 million
B. VND5,000 million
C. VND25 million
D. VND4,700 million
17. CCD Co, a company in Vietnam, reimbursed employees’ expenses for overseas business trips
originally paid by the employees using their personal credit cards. The expenses amounted to VND50
million in total.
Which of the following conditions must be met for CCD Co to treat such reimbursed expenses as
deductible for corporate income tax (CIT) purposes? (1) The credit card is guaranteed by the company (2)
The expenses are supported by proper documents/invoices (3) The trip is authorised by a decision issued
by the company’s directors (4) The company policy allows employees to advance expenses for business
trips by personal credit cards


A. 1, 2, 3 and 4

B. 1 and 4 only
C. 2 and 3 only
D. 2, 3 and 4 only
18. Ms. Huong Nguyen, who gave birth on 1 February 2018, is CEO of HWK Co, a company in Vietnam.
She returned to work on 1 May 2018, despite the company policy and the regulations allowing her a sixmonth maternity leave. When she returned, the company paid her normal salary of VND300 million per
month and in addition, during the three months ended 31 July 2018, she received an overtime allowance
of VND150 million per month (which is within the range of allowed overtime under prevailing labour
regulations). However, Ms Huong Nguyen did not actually work any overtime and the allowance was paid
to compensate her for early return from maternity leave as a result of work requirements. The company
and Ms Huong Nguyen did not claim any maternity leave benefits from social insurance from May 2018
onwards.
What is the adjustment amount for non-deductible expenses which HWK Co should make in its corporate
income tax (CIT) return for the year ended 31 December 2018 in respect of the payments to Ms Huong
Nguyen?
A. VND1,350 million
B. VND450 million
C. VND0 million
D. VND900 million
19. NIV Co, a Vietnamese company, rented an office for its operations from 1 April 2017 and paid a
deposit of VND792 million, equivalent to two monthly rental fees, inclusive of 10% value added tax
(VAT). Rent is payable two months in advance.
What is the amount of deductible rental expense which NIV Co can claim for corporate income tax (CIT)
purposes in the year ended 31 October 2017?
A. VND5,040 million
B. VND2,520 million
C. VND3,240 million
D. VND2,772 million
20. In 2017, CSP Co, a Vietnamese company, sold 80% of its 100% shareholding in ADC Co, another
Vietnamese company, to a foreign buyer for VND120,000 million. ADC Co was established in 2008 with
capital of VND60,000 million (fully paid up). CSP Co purchased all of the shares of ADC Co in 2012 from

the original founder for an amount of VND100,000 million, as reflected in the share purchase agreement.
The transfer expenses incurred were immaterial.
What is the corporate income tax (CIT) payable by CSP Co on the sale of shares in ADC Co in the year
2017?
A. VND8,000 million
B. VND3,200 million
C. VND9,600 million


D. VND14,400 million
21. SHDL Co is a Vietnamese company. In 2017, the company contributed capital to SBS Co, a newly
established company in Vietnam, in the form of an indefinite-term land use right (LUR) for a piece of land
in Ho Chi Minh City. The book value of the LUR recorded in SHDL Co’s accounts before the contribution
was VND100,000 million. The agreed capital contribution value was VND180,000 million. SHDL Co wants
to use the maximum period to allocate the revaluation gain from the LUR to other income as allowed
under prevailing corporate income tax (CIT) regulations.
What is the taxable income figure in respect of the capital contribution of the land use right (LUR) to SBS
Co which SHDL Co should declare on its corporate income tax (CIT) return for the year ended 31
December 2017?
A. VND80,000 million
B. VND180,000 million
C. VND8,000 million
D. VND16,000 million
22. CLT Co is a Vietnamese company employing 1,200 employees in 2017. The company has a policy to
provide uniforms to employees in both cash and in kind. In 2017, the total uniform expenses paid by CLT
Co was VND12,800 million, of which VND8,000 million was paid in cash to employees. 40% of the
expenses in kind are not supported by proper documents.
How much of CLT Co’s uniform expenses are non-deductible for corporate income tax (CIT) purposes in
2017?
A. VND8,880 million

B. VND3,920 million
C. VND9,920 million
D. VND1,920 million
23. PROVI Co is a company established in Vietnam. PROVI Co paid provisional quarterly corporate income tax (CIT)
of VND8 billion relating to the year ended 31 December 2018. The final tax liabilities of PROVI Co per its CIT
finalisation return for 2018 was VND11 billion. The company settled the additional tax obligations as per its CIT
finalisation return for 2018 on 31 March 2019.
What is the amount on which the late tax payment penalty payable by PROVI Co will be based and from which date
would it be charged?
A.
B.
C.
D.

Based on VND0·8 billion, payable from 31 January 2019
Based on VND2·2 billion, payable from 31 January 2019
Based on VND2·2 billion, payable from 1 April 2019
Based on VND3 billion, payable from 31 January 2019

24. Enterprise B receives contributed capital from enterprise A (Vietnamese company). 2016 pre-tax income
corresponding to enterprise A’s contributed capital in enterprise B is VND 100 million. Enterprise B is eligible for 50%
reduction of the payable CIT amount and has fully paid CIT.
How much is A’s shared income and it is taxable or exempt?


A.
B.
C.
D.


78 million and taxable
90 million and exempt
78 million and exempt
90 million and taxable

25. Which combination of the following statements correctly describes the treatment of foreign
exchange gains/losses arising during the construction period of a new company which has no revenue?
(1) Gains and losses must be accounted for separately
(2) Gains and losses can be offset
(3) Gains and losses must be recognised in the year of incurrence
(4) Gains and losses must be deferred and allocated over a period of up to five years from when the
project is put into use
A. 1 and 3
B. 1 and 4
C. 2 and 3
D. 2 and 4
26. One of the methods for determining the arm’s length price for a transaction between related parties
is CUP. What does CUP stands for?
A. Controllable uncompared price
B. Comparable uncontrolled price
C. Controllable unit price
D. Comparable unit price
27. GVC Co is a property development company. In 2018, GVC Co provided some villas to some key
employees of the company free of charge in exchange for commitment of five years of services. The
market value of these villas amounted to VND150,000 million, but this amount was not included in the
sales revenue in the audited financial statements. The construction costs of these villas, amounting to
VND100,000 million, were included in the costs of sales in the audited financial statements.
What amount (in VND million) of adjustments to revenue and costs of sales should the company make in
its tax return for the year ended 31 December 2014 in respect of the above transaction?


A.

With regard to taxable revenue
Add back 150,000

With regard to costs of sales
Deduct 100,000

B.

Add back 150,000

No adjustment

C.
D.

No adjustment
No adjustment

Deduct 100,000
No adjustment

28. TLN Co is a Vietnamese limited liability company. Hanada Co, a Japanese company, is considering
transferring its capital contribution in TLN Co to Nahada Co, an Indian company.
Which party will be responsible for making the tax declaration for the above transaction?


A. Hanada Co only
B. Nahada Co only

C. Nahada Co and TLN Co
D. TLN Co only

B. FCT
1. Which of the following transactions would be subject to Foreign Contractor Tax (“FCT”) in Vietnam?
(i) Repair of a Vietnamese internet cable offshore
(ii) Online training for the employees of a Vietnamese company where the server is hosted overseas
(iii) An intermediary arrangement for a Vietnamese company to provide services in Singapore
(iv) Granting of rights to a Vietnamese company to use the international brand name of a world-famous
product in Vietnam
A. i and ii
B. ii and iv
C. i and iii
D. iii and iv
2. FCT rate for transfer of the right to use of trademark
A. 10% CIT, 5% VAT
B. 5% CIT, 5% CIT
C. 10% CIT
D. 2% CIT
3. FCT rate for transfer of securities
A. 5% CIT, 3% VAT
B. 2% CIT
C. 0.1% CIT
D. 1% CIT
4. Which is (are) the requirement(s) for PE conditions?
A. A production or business establishment through which a foreign company carries out part or the
whole of business activities in Vietnam and earn income
B. A production or business establishment through which a foreign company carries out part of business
activities in Vietnam and earn income
C. A production or business establishment through which a foreign company carries out the whole of

business activities in Vietnam and earn income
D. A production or business establishment through which a foreign company carries out part or the
whole of business activities in Vietnam and have profit


5. PNLT Co, a foreign contractor from Denmark, entered into a contract for construction of a factory in
Vietnam and applied the deemed method for declaring foreign contractor tax (FCT). The works were
completed in 2017, however, there were some disputes between PNLT Co, its suppliers and the project
owner. When the disputes were settled in 2018, PNLT Co received contractual compensation of
USD500,000 from its suppliers, but had to pay contractual compensation of USD320,000 to the project
owner. Compensation is treated as ‘other business activities’ for corporate income tax (CIT) purposes.
What is the amount of corporate income tax (CIT) as a portion of the foreign contractor tax (FCT) liability
incurred by PNLT Co in Vietnam in 2018, if the company’s policy is to minimise tax under current
regulations?
A. USD0
B. USD10,000
C. USD36,000
D. USD3,600
6. In 2018, MHT Co, a Japanese company, signed a contract to supply and install equipment for PCR Co, a
Vietnamese company. The contract price was USD2 million gross of value added tax (VAT) and corporate
income tax (CIT). MHT Co purchased goods relating to this contract, valued at USD0·50 million, from
Vietnamese suppliers.
What is the amount (in USD) of the corporate income tax (CIT) portion of foreign contractor tax (FCT)
which PCR Co would be required to withhold on the above contract with MHT Co, assuming MHT Co
applied the deemed method for FCT declaration?
A. USD29,100
B. USD40,816
C. USD30,612
D. USD38,800
7. RED Co, a Vietnamese real estate developer, signed a contract in May 2017 with TLA Co, a Hong Kong

company. The contract was for TLA Co to provide advertising and intermediary services to Hong Kong
investors to purchase apartments developed by RED Co in Vietnam. TLA Co’s services are carried out
partly in Vietnam and partly in Hong Kong. According to the contract, RED Co is required to pay a fixed
fee of USD200,000 (net of any tax in Vietnam) to TLA Co for 12 months of services, payable in two equal
instalments in March and September.
What is the amount (in USD) of the corporate income tax (CIT) portion of foreign contractor tax (FCT)
RED Co would be liable to pay in Vietnam in 2017 based on the above contract with TLA Co?
A. USD10,526
B. USD5,540
C. USD0
D. USD5,263
8. TCD Co, an Australian company, signed a contract with HMC Co, a Vietnamese company, for TCD Co to
provide consultancy skills training for HMC Co’s staff in 2017. The value of the training agreement was
USD100,000, gross of corporate income tax (CIT) and net of the value added tax (VAT) portion of foreign
contractor tax (FCT). The contract value was made up of online courses (20%), whilst the remaining 80%


was attributable to training courses which took place in Vietnam. HMC Co settled the contract value in
full in 2017.
What is the amount (in USD), net of foreign contractor tax (FCT), TCD Co can receive from HMC Co in
respect of the above training agreement during the year 2017?
A. USD95,000
B. USD94,737
C. USD98,947
D. USD96,000
9. XAL Co is a foreign airline which has an office in Vietnam to sell airfares. In the fourth quarter of 2017,
XAL Co earned gross revenue, i.e. before the deduction of any charges or refunds, of USD250,000, based
on receipts and records. Of this amount, USD200,000 was for passenger transportation, and the
remaining amount related to cargo transportation. Airport charges of USD5,000 were collected from
these fares on behalf of the domestic airports. XAL Co also paid refunds of USD7,000 to passengers who

returned their fares during the quarter.
What is the total amount of taxable income (in USD) which XAL Co should declare for the corporate
income tax (CIT) portion of the foreign contractor tax (FCT) in the fourth quarter of 2017?
A. USD188,000
B. USD238,000
C. USD245,000
D. USD193,000
10. VERYDEU Co, a Chinese company, signed a contract with a Vietnamese project owner for the supply
and installation of some equipment. VERYDEU Co subcontracted all the equipment supply value to a
Vietnamese subcontractor and only performed the installation activities itself. What would be the
foreign contractor tax (FCT) rates applicable to VERYDEU Co under the deemed method?

A
B
C
D

CIT
2%
5%
1%
10%

VAT
3%
5%
Exempt
Exempt

11. Lameda Co, a foreign company based in Singapore, hired space in a bonded warehouse in Vietnam.

The storage space was used for:
– the temporary storage of materials for Lamevie Co, a Vietnamese company, prior to their further
processing by Lamevie Co; and
– the storage of finished goods for other companies in Vietnam prior to their distribution in Vietnam.
In the case of the finished goods, the costs of transportation from the bonded warehouse to the
distributors’ warehouse in Vietnam was paid for by the distributors but reimbursed by Lameda Co. What
are the Vietnamese foreign contractor tax (FCT) implications for Lameda Co from the above
transactions?

A

With Lamevie Co
Subject to FCT

With other distributors
Subject to FCT


B
C
D

Subject to FCT
Not subject to FCT
Not subject to FCT

Not subject to FCT
Subject to FCT
Not subject to FCT


12. In July 2010, MGT Co borrowed USD10 million from a foreign bank at an interest rate of 5% per
annum for four years (MGT will bear any FCT on the interest). It is specified in the loan agreement that
where MGT cannot repay the loan on the specified date, MGT would be subject to late payment interest.
In October 2014, MGT paid back the loan plus USD250,000 interest and USD40,000 for late payment
interest.
What is the amount of the CIT portion of FCT (rounded to 0 decimal) to be declared and paid by MGT Co
for the above transaction?
A. USD13,300
B. USD14,500
C. USD13,974
D. USD15,263
NOTES: USD15,263 [(250,000 + 40,000)/(1 – 5%) * 5%]
13. In 2018, MHT Co, a Japanese company, signed a contract to supply and install equipment for PCR Co,
a Vietnamese company. The contract price was USD2 million gross of value added tax (VAT) and
corporate income tax (CIT). MHT Co purchased goods relating to this contract, valued at USD0·50 million,
from Vietnamese suppliers.
What is the amount (in USD) of the corporate income tax (CIT) portion of foreign contractor tax (FCT)
which PCR Co would be required to withhold on the above contract with MHT Co, assuming MHT Co
applied the deemed method for FCT declaration?
A. USD29,100
B. USD40,816
C. USD30,612
D. USD38,800
C. VAT
1. Which of the following items are VAT objects?
A Goods and services manufactured and traded in Vietnam, except for exempted cases by law
Goods and services purchased from overseas companies and individuals, except for exempted cases by
B law
Goods and services used for manufacture, trade and consumption in Vietnam including those purchased
C from overseas companies/individuals, except for exempted cases by laws

Goods and services manufactured, traded and consumption in Vietnam, except for exempted cases by
D law

2. Which of the following is the taxable price of goods and services used for exchange and internal
consumption served for non-business activities?
A The selling price exclusive of VAT
B The selling price inclusive of VAT
C The taxable price of the similar kinds of goods and services


D

The taxable price of the similar kinds of goods and services at the performing time of these transactions

3. Which of the following items are subject to 10% VAT?
A Ambulance vehicles
B Medical gloves
C Crutches for handicapped people
D Food supplements

4. Which of the following items are NOT subject to VAT?
(1) Monetary compensation for land and property on land that is withdrawn by a competent authority
(2) Contract violation penalty
(3) Support fee, subsidy without service provision in exchange
A (1) and (2)
B (1) and (3)
C (2) and (3)
D (1), (2) and (3)

5. Where a company provides construction and installation services including materials and equipment

provision, which of the following is the taxable price?
A Construction and installation service fees excluding value of materials and equipment, VAT exclusive
B Construction and installation service fees excluding value of materials and equipment, VAT inclusive
C Construction and installation service fees including value of materials and equipment, VAT exclusive
D Construction and installation service fees including value of materials and equipment, VAT inclusive

6. Company X applies the VAT credit method. Company X purchases green coffee beans from farmers and
then sells them to business Household Y.
Which of the following is the VAT calculation applicable for the sale of green coffee beans?
A 1% * turnover
B 5% * (selling price - cost of goods sold)
C 10% * (selling price - cost of goods sold)
D Exempted from VAT

7. Which of the following items are exempted from VAT?
A State-owned houses which the State sells to the lessees of these houses
B Socialised houses sold to people who are allowed to buy socialised houses according to the Law
C Commercial houses sold to the lessees of these houses
D Socialised houses sold to the lessees of these houses

8. Which of the following items is eligible for 0% VAT?
A Exported iodised salt
B Transfer of technology overseas
C Cars sold to companies located in non-tariff areas
D Telecommunication services provided to companies located in non-tariff areas


9. Which of the following items are exempted from VAT?
A Science and technology services according to the laws
B Internet entertainment services

C Software services
D Teaching tools

10. Which of the following is the taxable price of goods and services internally circulated for continuous
production process?
A These goods are not subject to VAT
B The selling price of these goods exclusive of VAT
C The selling price of these goods inclusive of VAT
D The taxable price of the similar kinds of goods and services at the performing time of these transactions

11. Which of the following is the taxable price of imported goods?
A The imported price exclusive of VAT
B The imported price exclusive of VAT, inclusive of special sale tax
C The imported price exclusive of VAT, inclusive of import tax
D The imported price exclusive of VAT, inclusive of import tax and special sale tax

12. A company is engaged to construction and installation works and paid based on completed and handedover parts of works.
Which of the following is the taxable price?
A The price of completed works
B The price of works, exclusive of materials value and VAT
C The price of works, inclusive of materials value, inclusive of VAT
D The price of completed and handed-over works, exclusive of VAT

13. Which of the following is exempted from VAT?
A Dredging trenches served for agricultural production
B Clean water served for daily life and production
C Education equipment and tools
D Fertilizer

14. Which of the following is the taxable price of real estate trading?

A The transfer price of real estate inclusive of land price (or land rental price) announced by provincial
People's Committees at the transfer time
B The transfer price of real estate exclusive of land price (or land rental price) announced by provincial
People's Committees at the transfer time
C The transfer price of real estate exclusive of real land price (or real land rental price) at the transfer time
D The transfer price of real estate inclusive of real land price (or real land rental price) at the transfer time

15. Which of the following taxpayers are those apply the VAT credit method?
A Individuals and business households which register for applying VAT credit method
B Companies which completely adhere to Vietnam accounting and invoicing regulations
C Companies which trade gold, silver, gemstone


D

Companies which completely adhere to Vietnam accounting and invoicing and register for applying VAT
credit method

16. How the VAT liability is determined in the VAT credit method?
A Output VAT - Input VAT
B Revenue * VAT rate
C (Revenue - COGS) * VAT rate
D Output VAT - Creditable Input VAT

17. A seller issued VAT invoices with VAT rates HIGHER than those prescribed by laws. The seller did not
rectify VAT rates until the tax authority came and found out the issue.
What is the tax treatment in this case?
A The seller cancelled the original VAT invoices, then issued new VAT invoices with VAT rates as precribed
by laws
B The seller issued adjusted VAT invoices with VAT rates as precribed by laws

C The seller retained the original VAT invoices, and declared and paid tax based on the VAT rates
presented on the original VAT invoices
D The seller retained the original VAT invoices, but declared and paid tax based on the VAT rates
prescribed by laws

18. The background is same to Question 17.
What are the VAT rates used by the buyers for input VAT credit purposes in this case?
A The buyers declared input VAT credit based on the VAT rates of the original invoices issued by the seller
B The buyers declared input VAT credit based on the VAT rates as prescribed by laws
C The buyers requested confirmations issued by the seller which acknowlege that the seller declared and
paid tax based on the VAT rates presented on the original VAT invoices, then the buyers declared input
VAT credit based on the VAT rates of the original invoices
D The buyers requested new VAT invoices presented the VAT rates as prescribed by laws, then the buyers
declared input VAT credit based on the VAT rates as prescribed by laws

19. A seller issued VAT invoices with VAT rates LOWER than those prescribed by laws. The seller did not rectify
VAT rates until the tax authority came and found out the issue.
What is the tax treatment in this case?
A The seller cancelled the original VAT invoices, then issued new VAT invoices with VAT rates as precribed
by laws
B The seller issued adjusted VAT invoices with VAT rates as precribed by laws
C The seller retained the original VAT invoices, and declared and paid tax based on the VAT rates
presented on the original VAT invoices
D The seller retained the original VAT invoices, but declared and paid tax based on the VAT rates
prescribed by laws in the tax audit

20. The background is same to Question 19.
What are the VAT rates used by the buyers for input VAT credit purposes in this case?
A The buyers declared input VAT credit based on the VAT rates of the original invoices issued by the seller
B The buyers declared input VAT credit based on the VAT rates as prescribed by laws



C

D

The buyers requested confirmations issued by the seller which acknowlege that the seller declared and
paid tax based on the VAT rates presented on the original VAT invoices, then the buyers declared input
VAT credit based on the VAT rates of the original invoices
The buyers requested new VAT invoices presented the VAT rates as prescribed by laws, then the buyers
declared input VAT credit based on the VAT rates as prescribed by laws

21. Which of the following taxpayers are those apply the VAT direct method?
(1) Individuals and business households
(2) Companies which do not completely adhere to Vietnam accounting and invoicing regulations
(3) Companies which trade gold, silver, gemstone
A (1) and (2)
B (1) and (3)
C (2) and (3)
D (1), (2) and (3)

22. How the VAT liability is determined in the VAT direct method applied for those trading gold, silver,
gemstone?
A Output VAT - Input VAT
B Revenue * VAT rate
C (Revenue - COGS) * VAT rate
D Output VAT - Creditable Input VAT

23. How the VAT liability is determined in the VAT direct method except for gold, silver, gemstone trading?
A Output VAT - Input VAT

B Revenue * VAT rate
C (Revenue - COGS) * VAT rate
D Output VAT - Creditable Input VAT

24. Company A is a food company applying the VAT credit method. Company A purchased rice from farmers
which in turn was sold to Company B to produce rice vermicelli and was sold to end users.
What are the VAT rates of these transactions?
Company A sold rice to Company B
Company A sold rice to end users
A Not subject to VAT
Not subject to VAT
B Not subject to VAT
5%
C 5%
5%
D 5%
10%

25. Company B imported alcohol for domestic sales. The imported price was VND300k / bottle. The SST rate
was 30%.
What is the amount of taxable price of a bottle for VAT purpose?
A VND300k
B VND390k
C VND231k
D VND428k


26. Company A is an electric fan manufacturer applying the VAT credit method. Company A installed 50
electric fans in its manufacturing site. The selling price and COGS of an electric fan is VND500k and VND300k,
respectively.

What is the amount of output VAT?
A VND0 million
B VND1 million
C VND1.5 million
D VND2.5 million

27. Company Y is a bottled water manufacturer applying the VAT credit method. In May, Company Y used 200
bottles of bottled water served for internal and external meetings of the company. 120 bottles were also used
in the staff charity event. The selling price and COGS of a bottle of bottled water is VND5k and VND2k,
respectively.
What are the amount of output VAT in these transactions?
Bottled water
Bottled water
served for meetings
used in staff charity event
A VND100k
VND60k
B VND0k
VND60k
C VND40k
VND24k
D VND0k
VND24k

28. Company P is a bottled soda manufacturer applying the VAT credit method. The selling price and COGS of
a bottle of bottled soda is VND20k and VND12k, respectively. In December, Company P launched a
promotional program "buy 10 get 1 free". Company P had not yet completed the notification procedure to
the State office due to tight launching deadline.
What are the amount of output VAT of a free bottle of bottled soda?
A VND0k

B VND0.8k
C VND1.2k
D VND2k

29. Company Z is a seller of phonecard applying the VAT credit method. In April, Company Z launched a
promotional program where a phonecard with par value of VND100k was sold at VND90k. The program was
notified to the State office.
What is the taxable price of a phonecard in April?
A VND100k
B VND90k
C VND91k
D VND82k

30. In 2019, Company H received land use rights from the State to build infrastructure and houses for sale.
Land use fee was VND30 billion. The project was granted 20% reduction in the land use fee. The approved
fees of land compensation and site clearance were VND15 billion.
What is the amount of land use fee which would be deducted from taxable price for VAT calculation purpose?
A VND30 billion
B VND45 billion
C VND24 billion


D

VND9 billion

31. In 2018, ISC Co, a Vietnamese company, received compensation in cash of VND1,000 million from an
insurance company for damage to goods caused by a fire. According to the insurance policy, the
compensation does NOT cover any value added tax (VAT) on the purchase of the goods. The insured goods
were purchased by ISC Co for VND1,650 million (inclusive of VAT 10%).

What is the amount of output value added tax (VAT) and creditable input VAT (in VND millions) ISC Co is
required to declare in 2018 as a result of the above transactions?
Output VAT
Creditable input VAT
A VND100 million
VND0 million
B VND0 million
VND150 million
C VND0 million
VND0 million
D VND100 million
VND150 million

32. On 30 June 2018, STG Co, a Vietnamese company, identifed the value added tax (VAT) declaration it made
for April 2018 was under-declared by VND1,000 million. It should be noted that 21 May 2018 was a Monday,
and there had been no tax audit at STG Co in 2018.
What is the late payment interest (in VND) which STG Co is required to settle on 30 June 2018, assuming the
under-declared value added tax (VAT) was settled on that date?
A VND12,300,000
B VND15,000,000
C VND20,000,000
D VND12,000,000

33. MTL Co is a Vietnamese company. It declared value added tax (VAT) on a monthly basis for the three-year
period from 2014 to 2016. In 2016, the company generated total revenue of VND60,000 million. MTL Co
continued declaring VAT on a monthly basis for the three-year period from 2017–2019. In 2017 and 2018,
MTL Co’s total declared revenue was VND52,000 million and VND58,000 million respectively. However,
following a tax audit in 2018, the company’s revenue in 2017 was adjusted to VND48,000 million.
Which of the following combinations correctly describes the value added tax (VAT) fling requirements of MTL
Co for the period 2017–2019 as a result of the tax audit?

2017
2018
2019
A Monthly basis
Quarterly basis
Quarterly basis
B Monthly basis
Monthly basis
Quarterly basis
C Monthly basis
Monthly basis
Monthly basis
D Quarterly basis
Quarterly basis
Quarterly basis

34. In 2017, DFC Co, a Vietnamese company, sold goods to SBY Co, another Vietnamese company, for a total
contract value of VND4,840 million, inclusive of 10% value added tax (VAT). According to the contract, SBY Co
is required to make payment within one month of the invoice date or pay interest of 1% of the contract value
per month, for each month of delay. SBY Co paid the invoice four months after DFC Co issued it on 31 May
2017.
What is the amount of total output value added tax (VAT) (in VND millions, rounded to one decimal) DFC Co is
required to declare in 2017 as a result of the above transactions?
A VND440·0 million
B VND459·4 million
C VND454·5 million


D


VND484·0 million

35. RFD Co is a Vietnamese company headquartered in Hanoi. In December 2017, the company had net
output value added tax (VAT) of VND2,000 million from its business operations in Hanoi. The company also
had input VAT from two investment projects, both of which were in the construction period and had not
generated any revenue. Project A is located in Hanoi and incurred input VAT of VND1,500 million. Project B is
located in Vinh Phuc province and incurred input VAT of VND400 million.
What is the correct treatment for the input value added tax (VAT) incurred by RFD Co in respect of the two
investment projects (assuming the relevant documents for a VAT refund are in place)?
Input VAT of Project A
Input VAT of Project B
A Claim refund for VND1,500 million
Claim refund for VND400 million
B Claim refund for VND1,500 million
Offset VND400 million with net output VAT of
VND2,000 million from operations of headquarter
C Offset VND1,500 million with net output
Claim refund for VND400 million
VAT of VND2,000 million from operations
of headquarter
D Offset VND1,500 million with net output
Offset VND400 million with the VND500 million, being the
VAT of VND2,000 million from operations
remaining amount of net output VAT after offsetting input
VAT
of headquarter
of project A

36. Ms Hang opened a grocery store in April 2018 with an estimation that in 2018, the total turnover would
be VND72 million and total cost of goods sold would be VND63 million.

What is Ms Hang’s VAT liability from grocery store operation in 2018?
A VND0 million
B VND90k
C VND360k
D VND720k

37. Ms Hang also opened a beauty salon in October 2019 with an estimation that in 2019, the total turnover
would be VND90 million and total cost of goods sold would be VND60 million.
What is Ms Hang’s VAT liability from beauty salon operation in 2019?
A VND0 million
B VND1.5 million
C VND1.8 million
D VND4.5 million

38. The background is same to Question 39. In 2020, due to Covid disease, Ms Hang suspended business
operations of the beauty salon from 15 February to 05 June.
What is Ms Hang’s VAT liability from beauty salon operation in 2020?
A VND10.5 million
B VND13.5 million
C VND12 million
D VND9 million


39. Mr A and Mrs A jointly own a row of 5 motel rooms which is being rented by students. An annual rental
income publicly registered at the tax authority is VND180million.
What is the VAT liability of the rental income of Mr A?
A VND0 million
B VND4.5 million
C VND9 million
D VND18 million


40. Mrs Hoa leased a house for 2 years from October 2017 to end of September 2019 with the monthly fee of
VND10 million. The 2-year fee was paid in lump-sum at the beginning of lease term.
What is Mrs Hoa’s total VAT liability from house lease activity?
A VND12 million
B VND10.5 million
C VND6 million
D VND0 million

41. Which of the following is NOT valid non-cash payment evidence for input VAT credit purpose?
A Offsetting the receivable of exported goods against the debts to the same foreign buyer
B Offsetting the receivable of goods sold against the payable of services purchased from the same foreign
organisation
C Authorising a 3rd party to make a bank transfer of the payable of services purchased on behalf of the
buyer
D Cash pay into bank account of the seller

42. Company A is a travelling service company. Company bought a 7-seat car with the purchase price (before
VAT) of VND2 billion.
What is the amount of creditable input VAT in this case?
A VND200 million
B VND160 million
C VND40 million
D VND100 million

43. Saigon Tourist performs a package tour contract with Thailand for 50 tourists for 5 days in Vietnam with
total payment of USD 32,000. The Vietnamese company pays for all airfares, meals, accommodation and
excursion tickets in accordance with the agreed program, and the cost of the return airfares between
Thailand and Vietnam is USD 10,000. The exchange rate is VND 20,000 for one US dollar.
What is the amount of taxable price for VAT purpose?

A VND440 million
B VND400 million
C VND640 million
D VND581.818 million

44. A business establishment providing casino services has the following data in the tax period:
- Amount earned from exchange of money for chips for players at the cash desk before they play games is
VND 43 billion.
- Amount paid back to players upon exchange of chips for money after they played games is VND 10 billion.


What is the amount of taxable price for VAT purpose?
A VND43 billion
B VND33 billion
C VND30 billion
D VND10 billion

45. Which of the following cases are subject to quarterly VAT declaration and payment?
(1) A newly established organisation
(2) An individual / business household with the annual turnover of last calendar year exceeding VND1 billion
(3) A company with the annual turnover of last calendar year exceeding VND50 billion
(4) A company with the annual turnover of last calendar year exceeding VND100 billion
A (1) and (2)
B (1) and (3)
C (2) and (3)
D (2) and (4)

46. What is the invoicing treatment of sale return?
(1) The buyer applying the VAT credit method would issue a VAT invoice specifying sale return to the seller
(2) The buyer applying the VAT direct method would prepare and sign a minutes specifying the sale return

with the seller, and the seller withdraw the original invoice
(3) The buyer being a non-business individual would prepare and sign a minutes specifying the sale return
with the seller, and the seller withdraw the original invoice
A (1) and (2)
B (1) and (3)
C (2) and (3)
D (1), (2) and (3)

47. What are the legitimate documents when a headquarter delivers goods to branches for subsequent sales?
(1) The headquarter would issue VAT invoices to its branches at the delivery time
(2) The headquarter would issue exwarehouse receipts cum internal transportation to its branches at the
delivery time
(3) The headquarter would issue internal delivery orders to its branches at the delivery time, and would
issue VAT invoices at the latter stage after receiving the list of goods actually sold from its branches
(4) The headquarter would issue exwarehouse receipts cum internal transportation to its branches at the
delivery time, and would issue VAT invoices at the latter stage after receiving the list of goods actually
sold from its branches
A (1) and (2)
B (1) and (3)
C (2) and (4)
D (1) and (4)

48. How to rectify a paper VAT invoice issued with incorrect name and address of the buyer?
A The seller and the buyer would sign a minutes to state and rectify the issue, and would not issue the
replaced invoice
B The seller would withdraw the incorrect invoice and issue the new one
C The seller would issue an adjusted invoice to rectify the issue
D The seller would notify the buyer about the issue and would not issue the replaced invoice