|
(a) Company K is a foreign owned manufactured enterprise located in ShenZhen. The company started operations
in 2006 and has earned profits in 2006 and in every year since. Under the previous enterprise income tax (EIT) laws Company K was entitled to an approved 15% EIT rate and started to enjoy the tax preference policy of ‘first two years exempt and following three years half’ in 2006. The following is the statement of EIT payable for the year 2009 prepared by the accountant of Company K: Note RMB Turnover 60,000,000 Cost of goods (40,000,00) –––––––––––– Gross profits 20,000,000 Management expenses 1 (3,500,000) Financial expenses 2 (200,000) Other net loss 3 (200,000) Other income 4 200,000 Investment income 5 300,000 –––––––––––– Taxable profits 16,600,000 –––––––––––– Tax rate 25% Tax payable 4,150,000 Notes: (1) The following amounts are included in the management expenses: – Salaries expenses of RMB2,000,000, including bonuses of RMB200,000 payable in January 2010. – Raw materials used for products for Company K’s own use, the manufacture of which was still in progress at 31 December 2009. The original cost of these raw materials was RMB100,000 and the market value of the partly manufactured self-use products (work-in-progress) is RMB200,000. – Non-deductible input value added tax (VAT) on a newly purchased company car of RMB50,000. – Customs duty paid for the import of raw materials of RMB151,500. – Entertaining expenses of RMB200,000. The amount of entertaining expenses over the limit in 2008 was RMB40,000. – Advertisement expenses of RMB7,300,000. The amount of advertisement expenses over the limit in 2008 was RMB2,000,000. – Staff and workers benefits of RMB500,000, including RMB50,000 paid as sponsorship to the primary school that the general manager’s son attends. The amount of staff and workers benefits in 2008 was within the limit. – Union expenses of RMB100,000. The amount of union expenses over the limit in 2008 was RMB70,000. – Staffs and workers education expenses of RMB30,000. The amount of education expenses over the limit in 2008 was RMB90,000. (2) The financial expenses relate to the interest on a loan borrowed for the construction of an office building that is not yet complete. (3) A batch of raw materials costing RMB850,000 (excluding VAT) plus transportation costs of RMB150,000 was destroyed but the insurance company agreed to compensation of only RMB800,000. (4) A liability due to a creditor who was liquidated three years ago was written off during 2009. (5) Investment income comprises interest received on a national debenture. Required: (i) Explain the correct enterprise income tax (EIT) treatment of each of the thirteen items referred to in notes (1) to (5); (20 marks) (ii) Calculate Company K’s correct taxable profit for the year 2009; (5 marks) (iii) State, giving reasons, how much EIT will be payable by Company K for the year 2009. (3 marks) (b) Briefly explain the revenue basis used to calculate allowable advertisement expenses and state the three necessary conditions for an item of expenditure to qualify for such a deduction. (3 marks) (c) Company X received a donation from an investor in the form of finished goods with a cost of RMB200,000 (excluding value added tax (VAT)) and the investor provided the necessary 17% VAT invoice. Company X paid the related transportation costs of RMB6,000 and the related customs duty of RMB20,000. Company X sold all of the finished goods for RMB500,000 (including VAT). Required: Calculate the enterprise income tax (EIT) payable by Company X as a result of these transactions, if the applicable EIT tax rate is 25%. (4 marks) (35 marks) 本部分内容设定了隐藏,需要回复后才能看到 4 |
|
| 喜欢0 |
|
|