Salubre Michael Vincent A.

BSBA MM 2-2

Taxation q3

1. There are 2 major categories of individual taxpayers which are citizens and aliens.
*Classification of Citizen
- Resident Citizen is a filipino citizen permanently residing in the Philippines Or is temporarily
staying outside of the Philippines for less than 183 days during the taxable year

- Non resident citizen a filipino citizen who stayed outside the country for more than 183 days
and has established proof to the CIR satisfaction of his intention to permanently reside
abroad as an immigrant or employee
*Classification of Aliens
- Residents Aliens are individual foreigners who stayed in the Philippines for more
than one year and are temporarily residing for an extended period of time because
of the requirements for work or purpose.
- Non resident Aliens an individual who is not a citizen and a resident in the
Philippines who came for a definite purpose ( business/trade) which they need to
accomplish.

2. There are 3 classification of corporate taxpayers which are the Domestic Corporation , Foreign
Corporation and Partnership
- Domestic Corporation are liable to pay corporate income tax from sources within or
without.
Foreign Corporation
- Resident Corporations are foreign corporations engaged in trade or business in the
Philippine
- Non- resident corporations are foreign corporations not engaged in business or trade in the
Philippines.
Partnership
- Taxable Partnerships partnership must file an annual information return to report the
income, deductions, gains, losses, etc., from its operations, but it does not pay income tax.
Instead, it “passes through” profits or losses to its partners
- Exempt Partnership any Limited Partner (or any partner or member of a Limited Partner that
is a flow through entity for federal income tax purposes) which is exempt from income
taxation