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    Tax Worksheet

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    Kim Irish
    This document outlines different tax calculation methods for business income in the Philippines. For income not exceeding 3 million pesos, businesses pay an 8% tax on income over 250,000 pesos. For income exceeding 3 million, businesses can choose between: 1) graduated income tax plus VAT on itemized deductions, 2) graduated tax plus VAT with optional standard deduction, or 3) 8% tax on income over 250,000 pesos. The document provides examples comparing tax owed under each method for different income levels and deduction amounts.

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    Tax Worksheet

    Uploaded by

    Kim Irish
    12 views5 pages
    This document outlines different tax calculation methods for business income in the Philippines. For income not exceeding 3 million pesos, businesses pay an 8% tax on income over 250,000 pesos. For income exceeding 3 million, businesses can choose between: 1) graduated income tax plus VAT on itemized deductions, 2) graduated tax plus VAT with optional standard deduction, or 3) 8% tax on income over 250,000 pesos. The document provides examples comparing tax owed under each method for different income levels and deduction amounts.

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    This document outlines different tax calculation methods for business income in the Philippines. For income not exceeding 3 million pesos, businesses pay an 8% tax on income over 250,000 pesos. For income exceeding 3 million, businesses can choose between: 1) graduated income tax plus VAT on itemized deductions, 2) graduated tax plus VAT with optional standard deduction, or 3) 8% tax on income over 250,000 pesos. The document provides examples comparing tax owed under each method for different income levels and deduction amounts.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    12 views5 pages

    Tax Worksheet

    Uploaded by

    Kim Irish
    This document outlines different tax calculation methods for business income in the Philippines. For income not exceeding 3 million pesos, businesses pay an 8% tax on income over 250,000 pesos. For income exceeding 3 million, businesses can choose between: 1) graduated income tax plus VAT on itemized deductions, 2) graduated tax plus VAT with optional standard deduction, or 3) 8% tax on income over 250,000 pesos. The document provides examples comparing tax owed under each method for different income levels and deduction amounts.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 5

    PURELY BUSINESS INCOME (if not exceeding VAT Threshold of P3M)

    1. 8% based on gross sales/receipts in excess of 250000

    OR

    2. Graduated + Percentage tax

    a. Itemized deductions
    b. OSD

    if exceeding VAT Threshold


    1. Graduated + VAT (Itemized)
    2. Graduated + VAT (OSD)

    Gross Sales/Receipts 416,666.67 100% 750,000.00


    OSD 166,666.67 40% 300,000.00 OSD
    Net Taxable Income 250,000.00 60% 450,000.00

    Income Tax Due - 42,500.00


    Percentage Tax Due 4,166.67 7,500.00
    Total 4,166.67 50,000.00

    8% Option
    Gross Sales/Receipts 416,666.67 750,000.00
    Threshold 250,000.00 250,000.00
    Excess over 250k 166,666.67 500,000.00

    Income Tax Due 13,333.33 40,000.00


    Percentage Tax Due - -
    Total 13,333.33 40,000.00

    Gross Sales / Receipts 750,000.00


    Salaries 100,000.00
    Rent 50,000.00
    Depreciation 30,000.00
    Utilities 30,000.00

    1. 8% based on excess over 250k

    Gross Sales / Receipts 750,000.00


    Threshold 250,000.00
    Excess over 250k 500,000.00
    Rate 8%
    Income Tax Due 40,000.00
    Percentage Tax Due -
    Total Tax 40,000.00

    2. Graduated - OSD + Percentage

    Gross Sales / Receipts 750,000.00


    OSD 300,000.00
    Taxable Income 450,000.00

    Income Tax Due 42,500.00


    Percentage Tax Due 7,500.00
    Total Tax 50,000.00

    3. Graduated - Itemized + Percentage

    Gross Sales / Receipts 750,000.00


    Salaries 100,000.00 PT Expense 1,000.00
    Rent 50,000.00 Cash
    Depreciation 30,000.00
    Utilities 30,000.00 VAT Payable 1,000.00
    Percentage Tax 7,500.00 Cash
    Taxable Income 532,500.00

    Income Tax Due 63,125.00


    Percentage Tax Due 7,500.00
    Total Tax 70,625.00

    Gross Sales / Receipts 750,000.00


    Salaries 200,000.00
    Rent 150,000.00
    Depreciation 180,000.00
    Utilities 100,000.00

    1. 8% option?
    Total Tax 40,000.00
    2. Graduated OSD + Percentage
    Total Tax 50,000.00
    3. Graduated Itemized + Percentage

    Gross Sales / Receipts 750,000.00


    Salaries 200,000.00
    Rent 150,000.00
    Depreciation 180,000.00
    Utilities 100,000.00
    Percentage Tax 7,500.00
    Taxable Income 112,500.00

    Income Tax Due -


    Percentage Tax Due 7,500.00
    Total Tax 7,500.00
    1,000.00

    1,000.00

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