Blezyl A.

Dela Fuente
2nd Year BSBA FM

1. Pauline, a citizen and married, left the Philippines in the middle of the year on July
1, 2022 to go to Italy and work there for 5 years. The Following data were provided
as of December 31, 2022:

Gross Business Income Business

Expenses
Period Phils Italy Phils Italy
Jan 1-June 30 300K 200K 100K 50K
July 1 Dec 31 600K 400K 150K 50K

TNI = (P300,000 + P200,000 + P600,000) – (P100,000 + P50,000 + P150,000)

TNI = P800,000

Her taxable income is?

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Resident citizen
TAX TYPE TAX RATE
1.) Interest from peso bank deposit, BDO, Makati FWTx 20%
2.) Interest from US dollar bank deposit, BPI-Manila FWTx 20%
3.)Interest from long term deposit more than 5 years Exempt Exempt
4.) Royalties, in general, Davao City FWTx 20%
5) Royalties, book published in Manila FWTx 10%
6) Prizes amounting to P30,000, Philippines FWTx 20%
7) P30,000 other winnings, Philippines FWTx 20%
8) P10,000 other winnings, Philippines FWTx 20%
9) P100,000 PCSO winnings FWTx 20%
10)Dividend income from a domestic corporation FWTx 10%
11) Gain on sale of shares of a domestic corporation FWTx 10%
traded in the local stock exchange

Nonresident citizen-ETB
TAX TYPE TAX RATE
1.) Interest from peso bank deposit, BDO, Makati FWTx 20%
2.) Interest from US dollar bank deposit, BPI-Manila FWTx 20%
3.)Interest from long term deposit more than 5 years Exempt Exempt
4.) Royalties, in general, Davao City FWTx 20%
5) Royalties, book published in Manila FWTx 10%
6) Prizes amounting to P30,000, Philippines FWTx 20%
7) P30,000 other winnings, Philippines FWTx 20%
8) P10,000 other winnings, Philippines FWTx 20%
9) P100,000 PCSO winnings FWTx 20%
10.) Dividend income from a domestic corporation FWTx 20%
11) Gain on sale of shares of a domestic corporation FWTx 20%
traded in the local stock exchange

Nonresident citizen-NETB
TAX TYPE TAX RATE
1.) Interest from peso bank deposit, BDO, Makati FWTx 25%
2.) Interest from US dollar bank deposit, BPI-Manila FWTx 25%
3.)Interest from long term deposit more than 5 years FWTx 25%
4.) Royalties, in general, Davao City FWTx 25%
5) Royalties, book published in Manila FWTx 25%
6) Prizes amounting to P30,000, Philippines FWTx 25%
7) P30,000 other winnings, Philippines FWTx 25%
8) P10,000 other winnings, Philippines FWTx 25%
9) P100,000 PCSO winnings FWTx 25%
10.) Dividend income from a domestic corporation FWTx 25%
11.) Gain on sale of shares of a domestic FWTx 25%
corporation traded in the local stock exchange

CREDITABLE WITHHOLDING TAX

Purchase of/payment for: CWT%
Professional fees
Individual
• If gross income for the current year ≤ P3M 5%
• If gross income for the current year ≥ P3M 10%

Non-individual
• If gross income for the current year ≤ P720k 10%
• If gross income for the current year ≥ P720k 50%

Rentals 5%
Goods 1%
Services 2%
Income payments to beneficiaries of estates/trusts 15%

Income payments to partners of GPPs

• If gross income for the current year ≤ P720k 10%
• If gross income for the current year ≥ P720k 15%

Certain income payments made by credit card companies 1%