MEMORY AID IN TAXATION LAW

SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS

Reproduction in any form of this copy is strictly prohibited!!!
MEMORY AID IN TAXATION LAW
SAN BEDA COLLEGE OF LAW 2003 CENTRALIZED BAR OPERATIONS
Reproduction in any form of this copy is strictly prohibited!!!
HH 1
TAXATION LAW COMMITTEE: Chairperson: Rhodaline Regoso; Asst. Chairperson & EDP: Maricel Alisuag; Subject Heads:unelet Mataro! Michelle Al"are#! E$ren Di#on! %han &uieb; Me'bers: Alexis Cervantes. Leizl
Calimaran, Berna Quibal, Noreli De Claro, Jocelyn Gamboa, Albert Rodriuez, !arla Cabel, Joey Carai, Rodol"o Quitolbo, Liam #adananan, #aul La$rence Lim, Alder Delloro, Jo%n &van 'ablizo, Ria &baviosa, #anc%o (as)uez, Aileen
Roxas, Lei" *+i,a

ANNEX HH: ILLUSTRATIVE PROBLEM ON CORPORATIONS
Alpha Chemicals, Inc. had the
following income and epenses for the year
!""!#
$ross income from %hilippine sources % &"","""
$ross income from 'nited (tates )*","""
$ross income from +apanese sources ,)*,"""
-penses on %hilippine income !!","""
-penses on 'nited (tates income ,!*,"""
-penses on +apanese income 1*","""
Compute the income ta payable under the
following assumptions#
A. A %hilippine corporation
.. An American corporation engaged in
business in the 'nited (tates, +apan
and the %hilippines.
C. A +apanese corporation engaged in
business in the 'nited (tates and
+apan.
/. A foreign international airline corporation
doing business in the %hilippines.
0Consider gross income as gross
%hilippine billings1.
-. A non2resident foreign cinematographic
film distributor.
3. A non2resident (wiss pri4ate ban5 that
etends loans to %hilippine borrowers
and the %hilippine income represented
the interest on such loans.
A. PHILIPPINE (DOMESTIC CORPORATION
-.ources o" income/ 0it%in and $it%out t%e
#%ili++ines1
$ross income 2 %hilippines % &"","""
2 '.(. )*","""
2 +apan ,)*,"""
6otal % 1,*!*,"""
7ess# -penses 2 %hilippines % !!","""
2 '.(. ,!*,"""
2 +apan 1*",""" % 89*,"""
6aable income % :,","""
Income ta payable (ec. !)A %:,",""" ,!; % !8*,8""
B. RESIDENT FOREIGN CORPORATION
-.ources o" income/ 0it%in t%e #%ili++ines1
$ross income 2 %hilippine sources % &"","""
7ess# -penses 2 %hilippines !!","""
6aable income % 1:","""
Income ta payable (ec. !)A %1:",""" ,!; % *),8""
C. NON!RESIDENT FOREIGN CORPORATION
-.ources o" income/ 0it%in t%e #%ili++ines1
$ross income 2 %hilippine sources % &"","""
Rate of 6a ,!;
Income ta payable % 1!:,"""
D. INTERNATIONAL CARRIER
-.ources o" income/ 0it%in t%e #%ili++ines1
$ross %hilippine .illings % &"","""
Rate of 6a !.*;
Income ta payable % 1","""
E. CINEMATOGRAPHIC FILM DISTRIBUTOR
-.ources o" income/ 0it%in t%e #%ili++ines1
$ross %hilippine .illings % &"","""
Rate of 6a !*;
Income ta payable % 1"","""
F. INTEREST ON FOREIGN LOANS NON!RESIDENT FOREIGN CORP.
-.ources o" income/ 0it%in t%e #%ili++ines1
$ross %hilippine .illings % &"","""
Rate of 6a !";
Income ta payable % :","""