TAXATION LAW

REVIEW MATERIAL FOR BAR EXAMINATION 2019

By:

Christine Angelica B. Elveña

Saint Louis University

Topic:

INCOME TAXATION (INVIDUAL TAXPAYERS)

Type of Income RC NRC RA NRAEBT NRANEBT
Compensation Income Normal tax Normal tax Normal tax Normal tax 25% FWT
Interest Income from 20% FWT, except 20% FWT, except 20% FWT, except 20% FWT, except 25% FWT
bank deposits and long-term deposit long-term deposit long-term deposit long-term deposit
deposit substitute (Exempt but if it is (Exempt but if it is (Exempt but if it is (Exempt but if it is
pre-terminated: pre-terminated: pre-terminated: pre-terminated:
5%- 4 years to less 5%- 4 years to less 5%- 4 years to less 5%- 4 years to less
than 5 years than 5 years than 5 years than 5 years
12%- 3 years to less 12%- 3 years to less 12%- 3 years to less 12%- 3 years to less
than 4 years than 4 years than 4 years than 4 years
20%- less than 3 20%- less than 3 20%- less than 3 20%- less than 3
years) years) years) years)
Interest Income from 15% Final Tax Exempt 15% Final Tax Exempt Exempt
bank deposits and
deposit substitute
(EFCDS)
Interest Income, which Normal tax Normal tax Normal tax Normal tax 25% FWT
is not sourced from
bank deposits and
deposit substitute
Dividend Income issued 10% FWT 10% FWT 10% FWT 20% FWT 25% FWT
by a domestic
corporation
Dividend Income issued Normal tax (part of Normal tax (part of Normal tax (part of Normal tax (part of 25% FWT
by a resident foreign gross income) gross income sourced gross income sourced gross income sourced
corporation from within) from within) from within)
Dividend Income issued Normal tax Not taxable Not taxable Not taxable Not taxable
a non-resident foreign
corporation

 TAXATION LAW
REVIEW MATERIAL FOR BAR EXAMINATION 2019

By:

Christine Angelica B. Elveña

Saint Louis University

Topic:

INCOME TAXATION (INVIDUAL TAXPAYERS)

Prizes 20% FWT, if more 20% FWT, if more 20% FWT, if more 20% FWT, if more 25% FWT
than 10,000 than 10,000 than 10,000 than 10,000
normal tax, if 10k or normal tax if 10k or normal tax if 10k or normal tax if 10k or
less less less less
Winnings 20% FWT 20% FWT 20% FWT 20% FWT 25% FWT
PCSO and lotto PCSO and lotto PCSO and lotto PCSO and lotto
winnings: winnings: winnings: winnings:
P10k or less- exempt P10k or less- exempt P10k or less- exempt P10k or less- exempt
More than 10k – 20% More than 10k – 20% More than 10k – 20% More than 10k – 20%
Royalties 20% FWT 20% FWT 20% FWT 20% FWT 25% FWT
LBM (literary works, LBM (literary works, LBM (literary works, LBM (literary works,
books and musical books and musical books and musical books and musical
composition) -10% composition) -10% composition) -10% composition) -10%
Income from Normal tax/8% Normal tax/8% Normal tax/8% Normal tax/8% N/A
business/profession option, if gross option, if gross option, if gross option, if gross
receipts is 3M or less receipts is 3M or less receipts is 3M or less receipts is 3M or less
Sale of real property 6% capital gains tax 6% capital gains tax 6% capital gains tax 6% capital gains tax 6% capital gains tax
(capital asset)
Sale of real and Normal tax/8% Normal tax/8% Normal tax/8% Normal tax/8% 25% FWT
personal property option, if gross option, if gross option, if gross option, if gross
(ordinary asset) receipts is 3M or less receipts is 3M or less receipts is 3M or less receipts is 3M or less
Sale of personal Normal tax Normal tax Normal tax Normal tax 25% FWT
property (capital asset)
Sale of shares of stocks 6/10 of 1% of GSP 6/10 of 1% of GSP 6/10 of 1% of GSP 6/10 of 1% of GSP 6/10 of 1% of GSP
(listed)
Sale of shares of stocks 15% final tax based on 15% final tax based on 15% final tax based on 15% final tax based on 15% final tax based
(unlisted) capital gain (also capital gain (also capital gain (also capital gain (also on capital gain (also
called capital gains called capital gains called capital gains called capital gains called capital gains
tax) tax) tax) tax) tax)