1. Mr.

A, a private rank and file employee received the following compensation and
benefits in 2018:

Salaries P 357,000
Night Shift Differential Pay 18,000
Performance Bonus 10,000
Laundry Allowance 4,800
Rice Subsidy (P2,200month) 26,400
Cost-of-living Allowance (COLA) 14,000
13th Month Pay 90,000
Uniform and Clothing Allowance 7,000

The salaries are net of P32,000 SSS,PHIC, PHILHEALTH, HDMF, Union dues, and
P40,000 withholding tax

Required: Compute the Income Tax Due = 900

2. Ms. B operates a convenience store while she offers bookkeeping services to her
clients. In 2018, her gross sales amounted to P1,800,000 in addition to her gross
receipts from bookkeeping services of P400,000. Her recorded cost of goods sold
and operating expenses were P1,325,000 and P320,000 respectively
How much is Ms. B’s taxable income and income tax due if she opted to avail of the
OSD? = 1,320,000; 286,000
How much is her income tax liability if she signifies her intention to be taxed at 8%?
= 156,000

3. In 2018, Ms. Gonzales, earned annual compensation of P1,000,000 inclusive of

13th month and other benefits in the amount of P92,000 but net of mandatory
contributions to SSS and Philhealth. Aside from employment income, he owns a
convenience store, with gross sales of P2,500,000. His cost of sales and operating
expenses are P1,000,000 and P500,000 respectively, and with non-operating income
of P150,000.
How much is her tax due for 2018 if she opted to be taxed at 8% income tax rate of
his gross sales for his income from business? =163,000; 212,000
How much is her tax due for 2018 if she did not opt for the 8% income tax based on
gross sales/receipts and other non-operating income? = 509,200