The following is the income statement of XXX Company as of 31 December 2016: 

For the period from 1 January 2016 till 31 December 2016 

Note L.E. Services /commission revenues 2,882,451 

Cost of services (1) (1,600,000) 

Gross profit 1,282,451 

General and administrative expenses Bad debt provision Depreciation (2) (3) (300,000) (20,000) (97,916) 

Loan interest expense ( 250,000) 

Profit for the year before tax 614,535 

1. COST OF SERVICES 31/12/2016 L.E. 

Rent 100,000 

Maintenance expenses 15,000 

Salaries and wages 850,000 

Employees Housing 100,000 

Car rent 300,000 

Travel expenses 162,000 

Telephone expenses 73,000 

Total 1,600,000 

2. GENERAL AND ADMINISTRATIVE EXPENSES 31/12/2016 L.E. 

Professional fees 70,000 

Maintenance expenses 30,000 

Transportation 20,000

Utilities 10,000 

Allowance for Board of Directors Office supplies 120,000 50,000 300,000 

3. Fixed Computer Office Assets equipment & Equipment and Buildings software L.E. furniture L.E. Cars L.E. Total L.E. 

Cost: Additions during the period and at 31 December 2016 350,000 65,000 35,000 200,000 650,000 

Accumulated depreciation: Provided during the period ended 31 December 2016 17,500 21,666 8,750 50,000 97,916 

Net Book Value at 31 December 2016 332,500 43,334 26,250 150,000 552,084 

Further information:

•The income statement is the first financial period for the company. 

•The date of the addition of fixed assets is 1 January 2016.

•The value of nonsupported documents is EGP 40,000 (where EGP 20,000 is recognized in G&A and EGP 20,000 in cost of sales). 

•The total equity of the company is EGP 100,000 and the total loan is 1000,000 

Required: 

(a) When is the deadline for submitting the tax return for XXX company? 

(B) Calculate the XXX’s taxable income and the tax due for the year ended 31 December 2016.

Answer rating: 100% (QA)

a The deadline set to file co... View the full answer