Answers
Fundamentals Level – Skills Module, Paper F6 (VNM) June 2018 Answers
Taxation (Vietnam) and Marking Scheme
Section B Marks
1 EDM JSC
(a) Deductibility of expenses
According to Article 6, point 2.4 of Circular 78/2014, as amended by Circulars 96/2015 and 130/2016, the
following principles apply to the deductibility of the cost of purchases from business individuals with revenue
below VND100 million per year for tax purposes:
– The buyer is required to prepare the list of purchases according to Form 01/TNDN (signed by an
authorised person). 1
– The expenses are not required to be supported with documents in the case of non-cash payments (in
other words, for payment-via-a-bank, evidence is NOT required). 1
– If the tax authorities view that the price in the list is higher than the market price, then the tax authorities
can re-calculate the deductible expenses based on such market price. 1
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3
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(b) Corporate income tax (CIT) adjustments for the year ended 31 December 2017
Item Adjustment
VND million
1. Payments to freelance lecturers
Add back: cash payments to individual lecturers with revenue in excess of
VND100 million (60%*VND600 million) 360 1
