Reference no: EM132501010
RPORATE TAXES FINAL EXERCISE
Question 1: Calculate the Net Income, Annual Corportate Taxes and VAT (fiscal year 2018) of a Company located in Barcelona, Spain based on the following information:
- The Company has an Tax ID as an Intracommunity Operator.
- A Capital Leasing contract signed in July 1st 2018 with BBVA Bank to finance a machinery wich its cost was 40,000 EUR.
- The contract will last only 3 years.
- The useful life of the asset is 10 years.
- Consider a VAT rate of 21% for the principal payment, and an Interest rate of 2.4% (paid monthly).
- Payments to be made at the end each the period
- Also consider an option purchase price of 1,000 EUR after the 3 years contract.
- Revenues of 215,000 EUR in 2018 (65% were national sales and the rest to some French customers). Assume a VAT rate of 21%
Salaries of 15,000 EUR in 2018
Advertising 10,000 EUR in 2018 @ 21% VAT
Utilities of 8,000 EUR in 2018 @21% VAT
Dividends of 2,000 EUR in 2018
In 2018 the Initial Inventory was 80,000 EUR, purchases were 120,000 EUR (@21% VAT) and final inventory was 75,000 EUR.
80% of the raw material is supplied by a local Company, and 20% by company based in Portugal.
Depreciation of other fixed assets were 9,000 EUR in 2018
Late fees payment on last year´s taxes were 2,500 EUR
Transportations expenses were 6,500 EUR in 2018 @21 VAT
Renting expenses were 20,000 EUR in 2018 @21 VAT
Trainning sessions delivered by an Business School were 1,400 EUR (VAT Exempt)
Insurance expenses in 2018 were 3,000 EUR @21% VAT
Travel expenses were 3,200 EUR in 2018 @21% VAT
Interests income earned from Long Term Financial Investments were 4,100 EUR
Christmas gifts to employees were 850 EUR in 2018 (first time the company does it). Assume general VAT rate was 10%
Price $40,000
AnnualNIR % 2.40% $1,125.88
Depreciation exp $13,000
Years 3
Freq 12N36
Salvage value $1,000
Interests 2018 $379
VAT 2018 Vat %21= $1,102.58