Tiêu đề Problems on chapter Three free professions final - with no answers.pdf ✅

Questions and Applications On Chapter Three Questions: 1- Define free professions? 2- Define non-commercial activities? 3- Explain the taxable activities of free professions and non- commercial activities. 4- Explain the scope of free professions and non- commercial tax. 5- Mention the deductible cost deduced from gross profit. 6- What is the deductible cost deducted from net profit. 7- Explain the tax treatment of contribution of the life insurance and contribution to union for special insurance. 8- Explain tax treatment for the following items: - Common expenses. - Revenue of selling furniture of profession practicing. - Revenue of selling special furniture. - Revenue of activity outside Egypt if the main center in Egypt. - Revenue of activity outside Egypt if the main center outside Egypt.
PROBLEM 1: The following are revenues and expenses (in L.E.) related to engineer Ramez, who practices his profession in his private office, for the year 2017: Revenues: 50,000 fees of engineering designs (of which 20,000 for designs not yet finished, 25,000 fees for designs handed to clients last year, and the rest of fees realized in Egypt for clients in Dubai). 30,000 fees of engineering consultations in Lebnan. 6,000 capital gains from selling some equipment in the office. 5,000 prize for his research on the fighting methods of terrorism. Expenses: 8,000 salaries of assistants at office. 600 electricity and water. 300 telephone and telegraph. 900 car expenses noting that it is partly used for personal purposes. 1,200 travelling expenses to Lebnan. 1,500 stationary noting that the value of the remainder stationary is L.E. 500 at the end of the year. 1,200 contributions to El Helal El Ahmar. 300 scientific books and magazines. 1,100 office rent. 900 insurance premium on the taxpayer life to his favor. 1,500 depreciation of office furniture. REQUIRED Calculate the tax bracket of the engineer, and the tax due for the year 2017, noting that the taxpayer is keeping regular books and documents.
Problem 2: The following are receipts and payments (in L.E.) related to Zain who works as physician and practices the profession in his private clinic for the year 2017: Receipts: (Revenue) 5,000 fees for examinations at clinic. 800 fees for examinations in home visits. 3,000 fees for surgical operations. 700 capital gains from selling medical appliances of his clinic. Payments: (expenses) 4,000 salaries of nurses and assistants. 1,200 electricity and water. 400 subscriptions in physicians syndicate. 3,000 purchase price of medical appliances. 600 car expenses. 500 contributions. 1,000 life insurance premiums. 600 Legal alimony. Additional Information 1. Fees for surgical operations not included: L.E. 500 was collected during the year from some patients as advance payment for surgical operations agreed for performing them next year, and L.E 900 was collected during the year for some surgical operations which was performed by Zain outside Egypt. 2. Subscribtion in the syndicate includes L.E. 150 for pension funds.
3. Medical appliance depreciate at the rate of 25% yearly (their value after purchase was L.E 5,000, noting that purchase of the new appliance took place on July first 2017). 4. The car is used for personal purpose beside the professional work. 5. The contribution paid are L.E. 100 to government and the rest to the Egyptian Health Society approved by the state. 6. The taxpayer keeps regular books. REQUIRED Calculate the revenue of the non-commercial professions subject to tax, and the tax due for 2017. Problem 3: The following information, of revenue and expenses for the year ended December 31st, 2017, were related to a professional accountant office: Frist: Receipt during the year: L.E. 50,000 fees for designing cost system for a company in Dubai. L.E. 30,000 received in advance for designing a cost system to an Egyptian private company. L.E. 20,000 fees for auditing the accounts of some Egyptian companies in 2016. L.E. 6,000 capital gain from selling air condition. L.E. 25,000 fees for a feasibility study which was accomplished in 2016. L.E. 50,000 net compensation for notifying about a tax avasion crime.