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  • Ms Abrial

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    Ashley Gana
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    The document compares two methods for calculating income tax due on P1,650,000 total taxable income: a) Using an 8% fixed tax rate would result in P112,000 tax due. b) Using the graduated tax table, P420,000 taxable income after expenses is taxed at 30% on the first P400,000 and 25% on the excess P20,000, resulting in P35,000 tax due.

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    The document compares two methods for calculating income tax due on P1,650,000 total taxable income: a) Using an 8% fixed tax rate would result in P112,000 tax due. b) Using the graduated tax table, P420,000 taxable income after expenses is taxed at 30% on the first P400,000 and 25% on the excess P20,000, resulting in P35,000 tax due.

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    44 views1 page

    Ms Abrial

    Uploaded by

    Ashley Gana
    The document compares two methods for calculating income tax due on P1,650,000 total taxable income: a) Using an 8% fixed tax rate would result in P112,000 tax due. b) Using the graduated tax table, P420,000 taxable income after expenses is taxed at 30% on the first P400,000 and 25% on the excess P20,000, resulting in P35,000 tax due.

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    © All Rights Reserved
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    of 1

    a) Use 8% fixed rate

    Gross sales P1,200,000


    Gross receipts 450,000
    Total taxable income P1,650,000

    Income Tax due: (1,650,000 – P250,000) x 8% = P112,000

    b) Use graduated tax table

    Gross receipts P450,000


    Gross sales P1,200,000
    Less COS 850,000
    Net income P 350,000
    Less Operating expenses 380,000
    Net loss 30,000
    Taxable income P420,000

    Income Tax due:


    1st P400,000 P30,000
    Excess P20,000 x 25% 5,000
    P35,000

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