Income Taxation Corporations 06 November 2020

Problem 16.1

2018 2019 2020 2021 2022

MCIT - 120,000 200,000 190,000 170,000
RCIT 90,000 110,000 220,000 - 180,000
Tax Due 90,000 120,000 220,000 190,000 180,000
Excess MCIT Carryover - - (10,000) - (180,000)
Tax Payable 90,000 120,000 210,000 190,000 -

Excess MCIT 10,000 190,000

Usage (10,000) (180,000)
Balance - 10,000

Problem 16.2

Gross Income 4,000,000

Allowable Deductions (3,200,000)
NOLCO (50,000)
Taxable Income 750,000
Tax Due (225,000)
NOLCO 50,000
Interest Income 40,000
Gain on sale 60,000
Total Earnings 675,000
Dividends Declared (400,000)
Common Stocks (400,000)
Retained Earnings, beginning 500,000
Tax Base 375,000
Tax Rate 10%
IAET 37,500

Problem 16.3

Taxable Income 1,200,000

Tax Due (360,000)
Tax Base 840,000
Tax Rate 15%
BPRT 126,000

Problem 16.4

Domestic Corporation Regular:

Taxable Income 350,000
Tax Rate 30% 105,000
Minimum:
Gross Income 700,000
Tax Rate 2% 14,000
Higher 105,000

Resident Foreign Corporation Regular:

Taxable Income 200,000
Tax Rate 30% 60,000
Minimum:
Gross Income 400,000
Tax Rate 2% 8,000
Higher 60,000

Non-Resident Foreign Philippine Gross Income 400,000

Corporation Tax Rate 30%
Income Taxation Corporations 06 November 2020

Tax 120,000

Private School/Non-Profit World Taxable Income 350,000

Hospital Tax Rate 10%
Tax Due 35,000

Non-Profit Entity Nil; exempt

GOCC World Taxable Income 350,000

Tax Rate 30%
Tax Due 105,000

International Carriers Gross Philippine Billings 400,000

Tax Rate 2.50%
Tax Due 10,000

Problem 16.5

Net Income - RBU 1,200,000

Tax Rate 30%
Regular Tax Due 360,000

Problem 16.6

Direct Flight from Cebu to Seoul 2,000,000

Direct Flight from Davao to Taipei 1,800,000
Interconnecting flight from Phnom Penh to Tokyo 1,000,000
Gross Philippine Billings 4,800,000
Tax Rate 2.50%
Income Tax Due 120,000