TUTORIAL 11: OTHER TAXES

Quiz:
6. Calculate the agriculture land use tax payable by a household in Hai Duong
who has 05 hectares of annually cultivated land which is classified as
category 4, knowing that threshold for this type of land is 02
hectares/household and tax rate applicable is 280kg paddy/hectare.
 
 Within threshold = 2*280=560 kg
 Above of threshold = (5-2)*280*1.2=1,008 kg
 Total tax payable = 560+1008=1568 kg

14. For the tax year 20XX, Mr. An owns a land in Hanoi. The area is 800m2 of
which: 200 m2 is for a house, another 200 m2 is for a playground and the
remaining 400m2 is for a small garden. Calculate the amount of non-
agriculture land use tax payable by Mr. An for tax year 20XX. Given that:
residential land threshold for each household is 100m2 and the base price for
tax purpose is VND30 mil.
 
 Tax payable = Area*Base price*Tax rate
o Residential land: progressive rate
 Within threshold = 100*30*0.03%=0.9 mil
 3 times of threshold = 3*100*30*0.07%=6.3 mil
 Above 3 times of threshold = (800-100-300)*30*0.15%=18.0
mil
 Total tax payable for the year = 0.9+6.3+18=25.2 mil

19. Volume of stones exploited: 200,000 m3. Sales for the month: To
company A: 32,000 m3 at before-VAT price of VND110,000/m3. To company
B: 40,000 m3 at before-VAT price of VND114,000/m3. To company C: 58,000
m3 at before-VAT price of VND109,000/m3. Calculate the amount of
severance tax payable by Rama for the tax month. Given that severance tax
is 6%.
 
 Severance tax payable = Quantity exploited*Average selling price*Tax
rate
 o Weighted Average selling price = (32,000*110,000 + 40,000*114,000
+ 58,000*109,000)/(32,000+40,000+58,000)=110,784.62
o Tax payable = 200,000*110,784.62*6%=1.329 bil

Problems:
Question 1: Mr. Dzung has 2 pieces of land in Hanoi. The total area is 2,000
m2 of which:
200m2 in Hang Ngang street is in dispute. While waiting for the court
decision, the land is currently being used by his family.
The rest of 1,800m2 in Cau Giay is legally granted to him by the competent
authority.
Required: Calculate the amount of non-agricultural land use tax payable by
Mr. Dzung.
Given that:
 residential land threshold for each household in Hang Ngang is 80m2
and in Cau Giay is 100m2;
 base price for tax purpose applicable to the piece of land in Hang Ngang
is VND200 mil and in Cau Giay is VND30 mil.
 
 Answer:
Non-agriculture land use tax payable by Mr. Dzung
 Hang Ngang
 Within threshold = 80*200*0.03% = 4.8 mil
 3 times of threshold = (200-80)*200*0.07%=16.8 mil
 Cau Giay
 Within threshold = 100*30*0.03%=0.9 mil
 3 times of threshold = 3*100*30*0.07%=6.3 mil
 Above 3 times of threshold = (1,800-400)*30*0.15%=63.0 mil
 Total tax payable = 4.8+16.8+0.9+6.3+63=91.8 mil

Question 2: Financial records of VNR – a coal mining company reveal the

following information:
Coal exploited during a month: 2,000,000 tons
 Sales made during this month:
 Exports: 600,000 tons at FOB price of $60/ton
 Sales to X Co.: 800,000 tons at VAT-exclusive price of VND900,000/ton
 Sales to Y Co.: 400,000 tons at VAT-exclusive price of VND980,000/ton
Required: Calculate environmental protection tax (EPT), severance tax and
VAT payable by VNR in this tax period.
 Exports are supported with sufficient documents prescribed by law.
 VAT is 10%, severance tax is 7% and EPT is VND15,000/ton.
 Total deductible input VAT is VND60 mil.
 Exchange rate for tax purpose is $1 = VND23,000
 
Answer:
 EPT payable = Quantity sold domestically*Specific rate = (800,000 +
400,000)*15,000/1,000,000=18,000 mil
 Severance tax = Quantity exploited*Average selling price*% rate
 Average selling price = (600,000*60*23,000 + 800,000*900,000 +
400,000*980,000)/1,800,000=1.078 mil
 Severance tax payable = 2,000,000*1.078*7% = 150,920 mil
 VAT payable
 Output VAT
o Export: 0%
o Domestic sales =
(800,000*900,000+400,000*980,000)*10%/1,000,000=111,200 mil
 Deductible input VAT = 60 mil
 VAT payable for the period = 111,200 – 60 = 111,140 mil
 
 
Question 3: AirMaster – a trading company has conducted the following
transactions during a tax month:
Imported 1,000 air-conditioners with capacity of 20,000 BTU. Base price for
import duty is VND10 mil. The amount of HCFC liquid in each air-con is 1kg.
AirMaster has sold all of these air-con in domestic market at VAT-exclusive
price of VND18 mil.
Imported 15 tons of plastic bags with base price for import duty was VND40
mil/ton. Company has sold 10 tons to a production company at before-VAT
price of VND80 mil/ton.
 Required: Calculate the amount of import duty, excise duty, EPT and VAT
payable by AirMaster in this tax period.
 Air-conditioner is subject to 20% import tax, 10% excise duty and 10%
VAT.
 Plastic bag is subject to 10% import tax, 10% VAT and VND40,000/kg.
 EPT for HCFC liquid is VND5,000/kg.
 Other creditable input VAT is VND35 mil.

Answer:
 Import air-con
 Import duty = 1,000*10*20%=2,000 mil
 Excise duty = 1,000*10*1.2*10%=1,200 mil -> deductible for quantity
sold during the period
 EPT = 1,000*1*5,000=5 mil (paid at importation)
 VAT = (1,000*10*1.2*1.1 + 5)*10%=1,320.5 -> deductible in full for the
period
 Sale of air-con
 Excise duty = (18/1.1)*1,000*10%=1,636.3636 mil
 Output VAT = 18*1,000*10%=1,800 mil
 Import plastic bag
 Import duty = 15*40*10%=60 mil
 EPT = 15*40,000*1,000=600 mil (paid at importation)
 VAT = (15*40*1.1 + 600)*10%=126 mil-> deductible in full for the period
 Sale of plastic bag
 Output VAT = 10*80*10%=80 mil
 VAT payable for the period = Output VAT - Deductible input VAT
= 1,800+80 - 1,320.5-126-35= 398.5 398.5 mil
 Excise duty payable for the period = Excise duty on sale - deductible excise
duty paid at importation
= 1,636.36 - 1,200= 436.36 mil