Estimated salary for the year (₱40,000 x 12 months) ₱480,000

Less: Mandatory contributions (₱5,000x12) 60,000

Net Taxable Income ₱420000

Annual income tax ₱30,000

Divided by: number of months in a year 12
Withholding tax for the month ₱2,500
Gross Sales - convenience store 800,000
Gross Receipts - bookkeeping services 300,000
Total Sales/Receipts 1,100,000
Less: Costs 300,000
Expenses 100,000 400,000
Net Taxable Income 700,000

Net Taxable Income 700,000

Less: Tax Exempt (2nd bracket) 400,000
Excess 300,000
Multiply by: Tax Rate 25%
Tax on Excess 75000
Add: Fixed Tax 30,000
Income Tax Due 105,000
Professional fees for lecture (₱100,000 x 4 weeks)
Income from onsite bookselling
Gross Income
Less: Expenses incurred from onsite bookselling 120,000
Food and accommodation expenses incurred, with receipts 100,000
Net Taxable Income

Net Taxable Income

Less: Tax Exempt (2nd bracket)
Excess
Multiply by: Tax Rate
Income Tax Due
400,000
140,000
540,000

220,000
320,000

320,000
250,000
70,000
20%
14000
Gross sales - convenience store 800,000
Gross sales - bookkeeping services 300,000
Total Sales/Receipts 1,100,000
Less: Cost of Sales 300,000 If you use the GRADUATED TAX
Gross Profit 800,000 and you are a MIXED INCOME E
Less: OPEX 100,000 you are ALLOWED to deduct the
Net Taxable Income 700,000 and expenses (like OPEX or ope
from the Total Sales/Receipts
Net Taxable Income 700,000
Less: Tax Exempt (3rd bracket) 400,000 Unlike if you use 8% tax rate (co
Excess 300,000 and you are a MIXED INCOME E
Multiply by: Tax Rate 25% you are NOT ALLOWED to dedu
Tax on Excess 75,000 from the Total Sales/Receipts
Add: Fixed Tax 30,000
Income Tax Due 105,000
e the GRADUATED TAX TABLE,
are a MIXED INCOME EARNER,
ALLOWED to deduct the COST (cost of sales or cost of goods sold - check the definition under NIRC)
enses (like OPEX or operating expenses) and other allowable deductions (MEMORIZE the enumeration in our LRP)
Total Sales/Receipts

you use 8% tax rate (compare this computation to the computation in our LRP)
are a MIXED INCOME EARNER,
NOT ALLOWED to deduct the COST and EXPENSES and other allowable deductions
Total Sales/Receipts
umeration in our LRP)