In 2025, he received the following income: - Payment from YT Co, an overseas entity providing a global video platform, for his video channel: VND3,600 million net after 10% commission to
Trang 1F6 ACCA Practice Exam
Prepared for Exam Preparation
Date: 1 October 2025
Trang 21 Part 1: Questions
1.1 Question 1
This scenario relates to two requirements
Mr Duc, a 50-year-old Vietnamese citizen with two dependants, works as a free-lancer In 2025, he received the following income:
- Payment from YT Co, an overseas entity providing a global video platform, for his video channel: VND3,600 million (net after 10% commission to a Vietnamese agency of YT Co)
- Royalties from a publishing house for writing a book: VND2,000 million
Mr Duc incurred expenses related to these income sources (with proper docu-mentation) totaling VND900 million, paid personally
Additionally, Mr Duc is a professional coach He signed a contract with CCC JSC,
a Vietnamese training company, for coaching sessions In 2025, his income from CCC JSC was VND1,080 million, after 10% provisional personal income tax de-duction
In January 2025, CCC JSC offered Mr Duc an option to purchase 10,000 shares at VND10,000 per share (market value of option: nil) He did not exercise the option due to insufficient funds By the end of 2025, the share price was VND15,000 Per Vietnamese tax guidance, individuals receiving payments from overseas dig-ital platforms like YT Co, exceeding VND100 million annually, are subject to 2% personal income tax (PIT) and 5% value-added tax (VAT) on proceeds, treated as business income
(a) Explain:
- The PIT treatment of Mr Duc’s expenses for video creation and book writing
- The party responsible for filing and paying PIT on his YT Co income
(b) Calculate the taxable income, PIT liability, and remaining tax payable (rounded
to one decimal place) for Mr Duc in 2025
1.2 Question 2
This scenario relates to two requirements
LXC Co, a Vietnamese media company, purchased a seven-seat car on 1 April
2024 for VND7,920 million (including 10% VAT), used for five years with monthly depreciation (none in disposal month)
In July 2025, the car was flood-damaged, requiring a VND1,000 million overhaul (net of VAT) Insurance covered 90% of the overhaul (excluding VAT), with 10% attributed to the driver’s fault LXC Co waived the driver’s compensation, bear-ing the cost On 1 September 2025, the car was sold for VND4,000 million (net of VAT) LXC Co donated 40% of the proceeds to a qualified hospital (documented) and used the rest for a self-managed scholarship fund Accounting profits for the fiscal year ended 30 September 2025 were VND20,000 million
(a) Explain the corporate income tax (CIT) treatment for donations and
Trang 3sponsor-ships, and list the FIVE types of deductible donations/sponsorships per Circular 78/2014 (as amended)
(b) Calculate the deductible and non-deductible expenses (rounded to two
deci-mals) for CIT purposes for LXC Co in the fiscal year ended 30 September 2025
Note: List all expense items in two columns (deductible and non-deductible
against accounting profits) in your workings
1.3 Question 3
This scenario relates to two requirements
ALH Co, a Singapore-based company with no Vietnam presence, provides a dig-ital platform for chatbot creation with subscription fees It is aware of Circular 80/2021 and Circular 13/2023/TT-BTC implications In 2025, it recorded:
Information Amount
(USD)
Payments from
- USD200,000
(Vietnam billing)
- USD100,000
(non-Vietnam
billing, Vietnam IP)
Payments outside
Vietnam (Vietnam
IP)
120,000
ALH Co plans to register and pay tax directly per Circular 80/2021 and Circular 13/2023/TT-BTC, with its activities treated as services
(a) Explain the tax filing and payment requirements for overseas companies
with no Vietnam permanent establishment providing digital services under Cir-cular 80/2021 and CirCir-cular 13/2023/TT-BTC, addressing:
- Acceptable methods for foreign contractor tax (FCT) filing and payment
- Tax registration and filing procedures for direct payment, and timing
- Audit obligations
- Vietnamese tax authority’s responsibilities for Double Tax Treaty relief
(b) Calculate the FCT (rounded to the nearest whole number) ALH Co must
de-clare and pay in 2025
1.4 Question 4
This scenario relates to two requirements
MNT Co, a Vietnamese company, manufactures heavy industry equipment
Trang 4Value Added Tax (VAT)
In October 2025, MNT Co had the following transactions:
1 Invoice for VND6,600 million for replacement spare parts (original parts dam-aged in a fire, costs covered by insurance; MNT Co purchased on insurer’s behalf and handed over the invoice)
2 Invoice for USD30,000 for brokerage services from SGN Co (Singapore) for equipment export to Singapore, with MNT Co bearing Vietnam withholding tax
3 Invoice for VND4,400 million for a football playground for factory employees
4 Provided equipment worth VND6,000 million to a trade fair (no charge), with input VAT of VND300 million; sold at cost after two weeks, registered with tax authorities
All amounts exclude 10% VAT unless stated
Tax Administration
MNT Co uses electronic invoices (e-invoices) with tax authority authentication codes
(a) For items (1) to (4), calculate creditable and non-creditable input VAT (in VND,
rounded to nearest million) and explain the treatment
(b) Explain the procedures for MNT Co and the tax authorities if an e-invoice
contains errors identified before issuance
1.5 Question 5
This scenario relates to one requirement Assume today is 1 October 2025 DCM JSC, a Vietnamese company, trades and installs training facilities Its draft financial statements for the year ended 30 September 2025 showed a VND30,000 million accounting profit Noted transactions:
1 Invoice for VND5,200 million (VND1,200 million installation) to LBO Co, com-pleted by 30 September 2025 but not recognized DCM earns 20% margin on trading, 55% on installation
2 Installation projects with 50% upfront payment (VAT invoices issued), rev-enue/costs recognized by cost completion:
Project Payment
(VND million, 50% + 10%
VAT)
% Com-plete
Recognized
Alpha 2,970 60% Revenue &
costs Beta 1,760 30% Costs only
Charlie 2,750 0% Neither
3 Delta project: Costs VND2,025 million (75% of total), recorded outside
Trang 5finan-cial statements, no initial payment.
4 Accrued VND3,000 million for bulk purchaser discounts
5 Tools purchased in 2024 (VND1,980 million) and 2025 (VND2,970 million, in-cluding VAT), expensed in accounting but amortized for tax
6 Cash dividends (VND2,000 million, recorded) and share dividends (VND2,500 million, not recorded)
7 2024 bad debt provision (VND800 million, non-compliant), debtors bankrupt
in 2025
Notes:
- Amounts exclude 10% VAT unless stated
- Pre-2025 transactions correctly treated for tax
Calculate DCM JSC’s CIT liability for the year ended 30 September 2025
Note: Start with VND30,000 million profit, list items (1) to (7), show treatment,
use zero (0) for no adjustment
1.6 Question 6
This scenario relates to requirements (a)(i), (a)(ii), and (b) Assume today is 31 December 2025
Mr Philip, a 40-year-old Australian, works for MLN Co in Vietnam He returned
to Australia in 2018 and was appointed Vietnam CEO from 1 March 2025 His mother (70, no income) and wife, Ms Huong (35, Vietnamese), live with him His
2025 remuneration:
- Salary: USD403,200
- Fixed bonus: One month’s salary, paid 1 July, pro-rata
- Performance bonus: Up to six months’ salary, paid January 2026
- Accommodation: USD5,000/month, paid to landlord
- Return air fare to Australia: USD3,000 per person (incurred December 2025)
Ms Huong, a fintech developer, stayed in Vietnam and developed a credit scor-ing application On 1 January 2025, she contributed it to DAS Ltd (100%-owned), valued at VND10,000 million On 31 December 2025, she sold 10% of DAS Ltd
to NMS Co for VND20,000 million NMS Co contributed VND60,000 million for 30% of DAS Ltd DAS Ltd paid Ms Huong a VND10,000 million dividend She was granted an option to sell remaining shares at VND2,000 million per 1%
(a) Calculate for Mr Philip in 2025:
(i) Taxable and non-taxable income (USD)
(ii) PIT liability (VND million, rounded to one decimal)
Note: List all income items, show treatment, use zero (0) for non-taxable items.
(b) Describe PIT implications for Ms Huong on:
- Application contribution to DAS Ltd
- Sale of DAS Ltd shares to NMS Co
- NMS Co’s capital contribution to DAS Ltd
Trang 6- Cash dividend from DAS Ltd
- Option to sell shares (put option)
Note: No tax calculations required.
2 Part 2: Answers with Detailed Explanations
Note: Answers are based on 2025 Vietnamese tax regulations (Circulars, PwC,
KPMG, EY) Calculations are rounded as required Exchange rate: 24,000 VND/USD Updates may be needed post-5 September 2025
2.1 Question 1
2.1.1 (a)
• PIT treatment of expenses: The VND900 million expenses incurred by Mr
Duc for video creation and book writing are not deductible for personal in-come tax purposes According to the Vietnamese tax authorities’ guidance, income from overseas digital platforms like YT Co is classified as business income and is subject to a flat 2% PIT rate on the gross proceeds received (VND3,600 million) Similarly, royalties from the publishing house are a separate category of non-employment income, taxed at a flat 5% rate on the gross revenue (VND2,000 million), as stipulated in Circular 111/2013/TT-BTC In both cases, the taxation is based on a presumptive flat rate applied
to gross income, which does not permit the deduction of related expenses, even if they are properly documented and directly attributable to the come generation This approach simplifies tax administration for such come streams but may result in a higher effective tax burden on net in-come
• Party responsible for PIT on YT Co income: Mr Duc himself is
responsi-ble for filing and paying the PIT on his income from YT Co The published guidance from the Vietnamese tax authorities indicates that individuals who receive payments from overseas digital platforms are directly liable for declaring and remitting the 2% PIT on the proceeds The Vietnamese agency that manages the channel and takes a 10% commission does not act as a withholding agent for PIT on behalf of YT Co, as YT Co is an over-seas entity not registered for tax withholding under the digital economy tax rules that became effective on 1 July 2025 If the agency had been des-ignated as a withholding agent, it would have been explicitly stated, but
in this case, the responsibility falls on the individual recipient, Mr Duc, to comply with the self-declaration and payment requirements through the Vietnamese tax system
2.1.2 (b)
Taxable income:
- YT Co: VND3,600 million (gross, taxed at flat 2%) This represents the net pay-ment after commission, but for tax purposes, it is treated as gross business in-come under the digital platform rules
Trang 7- Royalties: VND2,000 million (gross, taxed at flat 5%) This is the full amount received from the publishing house, without deductions
- Coaching: Gross income VND1,200 million (calculated as VND1,080 million net after 10% provisional withholding of VND120 million), taxed at progressive rates after allowances No specific expenses are mentioned for coaching, so the full gross is used
- Stock option: VND0 (the option was not exercised in 2025, and under Viet-namese PIT rules for stock options, no taxable benefit arises until exercise or sale, even though the share price increased by year-end)
Coaching (business income, progressive taxation):
- Taxable income before allowances: VND1,200 million
- Personal allowance: VND132 million (standard annual allowance of VND11 mil-lion per month for 12 months, available to Vietnamese residents)
- Dependants allowance: VND105.6 million (VND4.4 million per month per pendant × 12 months × 2 dependants, assuming both qualify as financially de-pendent)
- Net taxable for progressive rates: VND1,200 - 132 - 105.6 = VND962.4 million
PIT liability:
- YT Co: 3,600 × 2% = VND72 million (flat rate on gross, no deductions or al-lowances apply)
- Royalties: 2,000 × 5% = VND100 million (flat rate on gross, separate from other income)
- Coaching (progressive rates applied to net taxable income):
• 0–60 million: 60 × 5% = 3 million
• 60–120 million: 60 × 10% = 6 million
• 120–216 million: 96 × 15% = 14.4 million
• 216–384 million: 168 × 20% = 33.6 million
• 384–624 million: 240 × 25% = 60 million
• 624–960 million: 336 × 30% = 100.8 million
• 960–962.4 million: 2.4 × 35% = 0.84 million
• Total for coaching: VND218.64 million
- Total PIT liability: 72 + 100 + 218.64 = VND390.64 million.
- Remaining tax payable: 390.64 - 120 (provisional tax deducted by CCC JSC) = VND270.6 million (rounded to one decimal place).
Explanation: The YT Co income and royalties are subject to flat-rate taxation
on gross amounts, as per specific guidance for digital platforms and Circular 111/2013/TT-BTC, which precludes expense deductions to simplify compliance
Trang 8but may overestimate tax on net earnings Coaching income, classified as busi-ness income from freelance services, is aggregated with other progressive-rate income and allows for personal and dependant allowances to reduce the taxable base, with tax calculated using Vietnam’s seven-bracket progressive scale (5% to 35%) The stock option is not taxable in 2025 because it was not exercised, align-ing with PIT rules that defer taxation until realization of benefit The provisional 10% tax withheld by CCC JSC is credited against the final liability, reducing the amount Mr Duc must pay upon annual declaration
2.2 Question 2
2.2.1 (a)
CIT treatment for donations and sponsorships: For corporate income tax
pur-poses in Vietnam, donations and sponsorships are generally deductible if they are made for specific permitted social and public welfare purposes, directed
to qualified recipients such as government-approved organizations or funds, and supported by proper documentation like receipts, invoices, or confirma-tion letters There is no monetary limit on the deductible amount as long as the contributions comply with the regulations outlined in Circular 96/2015/TT-BTC and sponsorship laws This policy is designed to encourage corporate social responsibility by providing tax incentives for contributions that benefit educa-tion, health, and other public sectors However, donations that do not meet these criteria, such as those to qualified entities or for private purposes, are non-deductible and must be added back to taxable income, increasing the CIT lia-bility Additionally, self-managed funds or internal uses may not qualify unless they align with approved categories
Five types of deductible donations/sponsorships (Circular 78/2014/TT-BTC,
as amended):
1 Sponsorships for education, such as donations to schools, educational insti-tutions, or programs aimed at improving educational facilities and access
2 Sponsorships for healthcare, including contributions to hospitals, medi-cal establishments, or health-related initiatives like disease prevention or medical equipment provision
3 Sponsorships for disaster relief, such as aid to victims of natural disasters
or contributions to state-managed relief funds for floods, earthquakes, or other emergencies
4 Sponsorships for building houses for the poor or solidarity houses, support-ing houssupport-ing projects for underprivileged households or communities
5 Sponsorships for study encouragement or scientific research, including schol-arships for students, funding for research projects, or support for scientific institutions and innovations
Trang 92.2.2 (b)
Deductible and non-deductible expenses (VND million, fiscal year 1 October
2024–30 September 2025, rounded to two decimals)
The car was purchased in 2024, so not in this year’s expenses Depreciation
is calculated for 11 months (October 2024 to August 2025, no depreciation in September disposal month) Accounting depreciation: VND1,320 million (based
on full cost) For tax, depreciation is capped at VND1,600 million for 7-seat cars,
so deductible portion is 11 months × (1,600 / 60 months) = 293.37, non-deductible 1,026.63 Overhaul cost: VND1,000 million, with 90% (900) reimbursed by in-surance and deductible as a repair expense; 10% (100) non-deductible due to employee’s subjective fault Waived compensation from driver: VND100 million (10% of overhaul), non-deductible as voluntary waiver not related to business operations Loss on disposal: Accounting loss VND1,160 million (based on book value), but for tax, non-deductible because disposal gain/loss is recalculated us-ing tax-depreciated value, and any loss exceedus-ing cap is not allowed Donation
to hospital: VND1,600 million (40% of VND4,000 million proceeds), deductible
as qualified healthcare sponsorship with documentation Self-managed scholar-ship fund: VND2,400 million (60% of proceeds), non-deductible as it is internal and not to an external qualified recipient
Item AccountingDeductible
Non-Deduct.
Depreciation 1,320 293.37 1,026.63
Overhaul 1,000 900.00 100.00
Waived comp 100 0.00 100.00
Disposal loss 1,160 0.00 1,160.00
Hospital
donation 1,600 1,600.00 0.00
Scholarship
Total deductible: 3,793.37
Total non-deductible: 4,786.63
Explanation: The classification of deductible and non-deductible expenses is
governed by Circular 96/2015/TT-BTC and related regulations Depreciation for passenger cars like the seven-seat vehicle is limited to VND1,600 million cost base to prevent excessive deductions for luxury assets, resulting in a partial non-deductible amount The overhaul expense is mostly non-deductible as it restores the asset for business use, but the portion due to employee fault is non-deductible
to discourage negligence Waiving the driver’s compensation is a voluntary de-cision not directly tied to business activities, hence non-deductible The disposal loss is adjusted for tax purposes, often leading to non-deductible portions if ac-counting book value exceeds tax-allowed depreciation The hospital donation qualifies under healthcare sponsorship, fully deductible with proper documents, promoting social contributions The self-managed fund does not meet the
Trang 10crite-ria for external, qualified sponsorships, so it is non-deductible, even though it has a charitable intent; companies must channel such funds through approved entities to claim deductions
2.3 Question 3
2.3.1 (a)
Under Circular 80/2021/TT-BTC and Circular 13/2023/TT-BTC, overseas compa-nies with no permanent establishment in Vietnam but deriving income from dig-ital services attributable to Vietnam are subject to foreign contractor tax (FCT) at
a combined rate of 10% (5% VAT and 5% CIT) on gross revenue, unless reduced
by a double tax treaty This framework aims to tax digital economy activities fairly, targeting income from Vietnamese users or locations
• Acceptable methods for FCT filing and payment: The three methods
in-clude (1) the withholding method, where the Vietnamese customer deducts and pays FCT on behalf of the foreign company; (2) the direct payment method, where the foreign company registers and pays the tax itself; and (3) the hybrid method, where the foreign company declares the tax, but the Vietnamese customer withholds and remits it These options provide flex-ibility for compliance based on the company’s preference and operational structure
• Tax registration and filing procedures for direct payment, and timing:
To pay directly, the company must register with the General Department
of Taxation through the dedicated e-portal for foreign suppliers, obtaining
a tax code and login credentials Declarations are filed quarterly via the e-portal, with the deadline being the last day of the month following the end of the quarter (e.g., Q1 declaration due by 30 April) Payments must be made in VND simultaneously with the filing, and no annual finalization is required under the direct method, simplifying year-end processes
• Company’s obligations for audits: The company is required to maintain
detailed records of all Vietnam-attributable transactions, including sub-scriber data, payments, and IP logs, for at least 10 years Upon audit notice from the Vietnamese tax authorities, the company must provide requested information and documents within 15 days, cooperate fully during the au-dit process, and potentially submit adau-ditional evidence if discrepancies are found, ensuring transparency in cross-border digital taxation
• Responsibilities of Vietnamese tax authority for Double Tax Treaty re-lief: If the company claims relief under a double tax treaty (e.g., between
Singapore and Vietnam), the tax authority is responsible for reviewing the application, verifying the company’s tax residency certificate from its home country, assessing treaty eligibility, and processing any overpaid tax re-fund or liability adjustment within 40 days of receiving a complete appli-cation, including all supporting documents