This document discusses the different sources of income and their taxability under Philippine law. There are three main sources of income: 1) income from within the Philippines, 2) income from outside the Philippines, and 3) income from both within and outside the Philippines. For income solely from within the Philippines, resident citizens and domestic corporations are taxable, while non-residents and foreign corporations are sometimes taxable. Income solely from outside the Philippines is generally only taxable for resident citizens and domestic corporations. Income from both within and outside the Philippines is partly taxable for residents and domestic corporations, as well as sometimes non-residents and foreign corporations. Examples are provided for each type of income source.
This document discusses the different sources of income and their taxability under Philippine law. There are three main sources of income: 1) income from within the Philippines, 2) income from outside the Philippines, and 3) income from both within and outside the Philippines. For income solely from within the Philippines, resident citizens and domestic corporations are taxable, while non-residents and foreign corporations are sometimes taxable. Income solely from outside the Philippines is generally only taxable for resident citizens and domestic corporations. Income from both within and outside the Philippines is partly taxable for residents and domestic corporations, as well as sometimes non-residents and foreign corporations. Examples are provided for each type of income source.
This document discusses the different sources of income and their taxability under Philippine law. There are three main sources of income: 1) income from within the Philippines, 2) income from outside the Philippines, and 3) income from both within and outside the Philippines. For income solely from within the Philippines, resident citizens and domestic corporations are taxable, while non-residents and foreign corporations are sometimes taxable. Income solely from outside the Philippines is generally only taxable for resident citizens and domestic corporations. Income from both within and outside the Philippines is partly taxable for residents and domestic corporations, as well as sometimes non-residents and foreign corporations. Examples are provided for each type of income source.
1. ENUMERATE THE SOURCES OF INCOME AND ITS TAXABILITY
Sources of Income Income maybe derived from: a) Sources Within the Philippines b) Sources Outside the Philippines c) Sources Party Within and Party Outside the Philippines
Income from Sources Within the Philippines
⎯ comprises earnings from within the Philippines territory Income Taxpayer ⎯ Resident citizen and domestic corporation are taxable ⎯ Non-resident, Alions and Foreign Corporation are taxable
Income from Sources Outside the Philippines
⎯ earnings coming from sources outside the Philippines or income derived from foreign countries. Income Taxpayer ⎯ Resident citizen and domestic corporation are taxable ⎯ Non-resident, Alions and Foreign Corporation are non taxable
Income Partly Within and Partly Outside the Philippines
⎯ earnings from sources partly within and partly outside the Philippines includes gains, profit and income. Income Taxpayer ⎯ Resident citizen and domestic corporation are taxable ⎯ Non-resident, Alions and Foreign Corporation are partly taxable
2. GIVE EXAMPLE OF EACH SOURCES OF INCOME.
➢ Income from Sources Within the Philippines Examples are: a. Compensation for labor or service derived from Philippine sources b. Interest on bonds , notes deposits and the like earned in the Philippines c. Dividends declared received from domestic corporations d. Rentals and royalties from property located within the Philippines e. Gains, profit and income from sale of real property as well as from personal property in the Philippines.
➢ Income from Sources Outside the Philippines
Examples are: a. Compensation for labor or service rendered by overseas contract workers b. Interest on bonds , notes deposits and the like earned abroad c. Dividends received from nonresident foreign corporations d. Rentals and royalties from property located outside the Philippines e. Gains, profit and income from sale of real property as well as from personal property in the Philippines. ➢ Income Partly Within and Partly Outside the Philippines Gains, Profit and Income are derived from: a. Transportation or other services rendered partly within and outside of Philippines b. Dividend received from a domestic corporation and foreign corporation