Required
(a) Calculate the profits tax payable by BEL for the year of assessment 2018/19, ignore provisional tax.
Guidelines: MUST follow the format in the lecture notes. State the title, tax rates, tax reduction clearly.
(11 marks)
(b) Explain your profits tax treatments for the following items:
(1) Sales through overseas agents $5,000,000 (3 marks)
(2) Interest from fixed term bank deposit interest $300,000 (3 marks)
(3) Sales proceeds of the registered product design $1,300,000 (2 marks)
(4) Registered trademark acquisition cost $2,000,000 (2 marks)
(5) Interest on bank loan $140,000 (3 marks)
(6) Write-off of staff loan $20,000 (3 marks)
(7) Initial repairs expense of the second-hand packing machine $100,000 (3 marks)
Sample Solution