BM1804 – Income Taxation
WEEK 1 - GENERAL PRINCIPLES OF 3. Necessity Theory or Principle of
TAXATION
Republic Act No. 10963
• Otherwise known as the Tax Reform for
Acceleration and Inclusion (TRAIN) Law
• Purposes:
a. Enhance progressivity of the tax system
b. Provide, as much as possible, an
equitable relief
c. Ensure that the government is able to
provide the needs of its jurisdiction
Three (3) Inherent Powers of a State
1. Power to Tax – It is an inherent power to
enforce contribution to support the
government to be used for public purposes. It
is regarded as supreme, plenary, unlimited,
and comprehensive.
2. Police Power – It is an inherent power to
legislate for the protection of the health,
general welfare, safety, and morals of the
public.
Note: It may be exercised through taxation
because taxes may be levied for the promotion of
the welfare of the public.
3. Power of Eminent Domain – It is an inherent
power to take private property for a public
purpose.
Note: Any property shall not be taken for public
use without just compensation.
Similarities of the Inherent Powers of the State
1. Inherent of the State
2. They exist independently of the Constitution,
although the Constitution may prescribe the
conditions for their exercise.
3. Ways by which the State interfere with private
rights and property
4. Legislative in nature
5. Presuppose an equivalent compensation
directly or indirectly received
Purposes of Taxation
• Primary – To raise revenue/funds to support
the necessary expenses of the government
• Secondary:
a. Regulatory purposes
b. Compensatory purposes
Note: The above purposes also serve as the definition
of taxation.
Theories or Basis of Taxation
1. Life-blood Theory – Taxes are the lifeblood
of the government; without it, the government
can neither operate nor survive.
2. Benefits Protection Theory (Symbiotic
Relationship) – Taxes are what we pay for a
civilized and organized society.
First Year Comprehensive Exam (FYCE) Handout
Necessity – Tax laws are created to support
the necessity of any state. The burden for
expenses to maintain the sovereignty,
services of the government, and
administrative expenses must be borne by its
own people.
Basic Principles of a Sound Tax System (Key:
FAT)
1. Fiscal Adequacy – Sufficiency to meet
government expenditures and other public
needs
2. Administrative Feasibility – The capability
of being enforced
3. Theoretical Justice (Ability to Pay Theory)
– Otherwise known as equitability, this
principle believes that taxation is based on
the taxpayer’s ability to pay; thus, it must be
progressive.
Inherent Limitations (Key: TIPEN)
1. Territoriality
General Rule: The power of taxation could
be exercised only within the territorial
boundaries of the taxing authority.
Exceptions:
• Tax laws operate outside territorial
jurisdiction.
o Resident citizens are taxable on
their incomes derived from
abroad.
• Tax law does not operate within the
territorial jurisdiction of the state.
o Exempted by treaty obligations
o Exempted by international comity
2. International comity – The property or
income of a foreign state or government may
not be subject to taxation by another.
Example: Income derived by a foreign
government from investments in the
Philippines in loans, stocks, bonds, or other
domestic securities or from the interest on
deposits in banks are exempted from
payment of income tax. [NIRC of 1997, Sec.
32 (B) (7)]
3. Public purpose – The power of tax exists for
the general welfare. It would be robbery for
the State to tax its citizens and use funds
generated for a private purpose.
4. Exemption of the government
General Rule: As a matter of public policy,
property of the State and of its municipal
subdivisions devoted to government uses
and purposes is deemed to be exempt from
taxation.
Reason: For the government to tax itself is
like getting money from one pocket (paying
*Property of STI
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taxes) and placing it in another pocket
(collecting taxes).
Exception: Sovereignty is absolute, and
taxation is an act of high sovereignty;
therefore, the state, if it is so minded, could
tax itself.
5. Non-delegability of the taxing power
General Rule: The power to tax is inherently
legislative (Congress).
Exceptions:
• Can be delegated to the President
o Shall have the power to veto any
part; and
o Fix within specified limits the
tariff rates, import or export
quotas, tonnage wharfage dues,
and other duties or imports
• Can be delegated to local
governments
o Power to create municipal
corporations and tax such local
governments
• Can be delegated to administrative
agencies
o Certain aspects of the taxing
process that are not legislative in
nature such as the valuation of
properties for tax purposes, etc.
Tip: Understand and memorize the above inherent
limitations. All other limitations, aside from the given,
will fall under Constitutional Limitations.
Doctrines in Taxation
1. Prospectivity of tax laws – Tax laws do not
have a retroactive application.
2. Imprescriptibility - Unless provided by law
itself, taxes, in general, are not cancelable.
3. Double Taxation – It presupposes the
existence of two (2) tax laws that impose dual
burdens upon the taxpayer.
Two (2) Types of Double Taxation
1. Direct Double Taxation, where
a. The same subject is taxed twice;
b. By the same taxing authority;
c. Within the same jurisdiction;
d. During the same taxing period; and
e. Covering the same kind of character of
tax.
Note: All elements must be met to be classified as
direct double taxation.
2. Indirect Double Taxation – when one of the
elements of direct double taxation is absent
There is no constitutional prohibition against
double taxation in the Philippines, though it is
not favored.
First Year Comprehensive Exam (FYCE) Handout
BM1804 – Income Taxation
Nature or Construction of Tax Laws
1. Tax laws are prospective, generally, but can
have retrospective application.
• The constitutional prohibition against
the passage of laws having a
retrospective application is limited to
penal or criminal statutes. Therefore, it
is not applicable to tax laws for being
civil in nature. However, they can be
given retrospective application if
expressly declared by the tax law.
2. A statute will not be construed as imposing a
tax unless it does so clearly and
unambiguously.
• In case of doubt, statutes imposing a tax
are construed most strongly against the
government and liberally in favor of the
citizen.
3. Tax exemptions are to be construed strictly
against the taxpayer.
• Legal provisions providing for tax
exemptions are construed strictly
against the grant (taxpayer) and liberally
in favor of the taxing power
(government)
Note: Tax laws are interpreted against the
government and in favor of the taxpayer. Tax
exemptions are interpreted against the taxpayer
and in favor of the government.
4. Revenue laws are not political in nature.
5. The legislative intention must be considered.
6. Tax laws are special laws and prevail over
general laws.
Forms of Escape from Taxation
1. Shifting of the burden of the tax – It is the
process of transferring the burden from one
taxpayer to another without any violations of
the law.
2. Capitalization – It is lowering the price of the
product, provided the taxes will be
shouldered by the buyer.
3. Transformation – The manufacturer or
producer pays the tax imposed on him. He
then recoups the tax paid by paying his
production more efficient and lowering his
cost of production.
4. Tax exemption – It is the freedom from the
burden of paying tax.
5. Tax avoidance – The means used in
minimizing taxes are legal and not prohibited
by law.
6. Tax evasion – The means used to lessen or
defeat taxes are pretenses and forbidden.
Tax Administration
• A system involving assessment, collection,
and enforcement of taxes, including the
execution of the judgment in all tax cases
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 BM1804 – Income Taxation

• The Bureau of Internal Revenue (BIR) chief WEEK 2 - TAX REMEDIES

is known as Commissioner of Internal
Revenue (CIR). Remedies of the Government
• The four (4) assistant chiefs are known as A. Administrative Remedies
Deputy Commissioners. 1. Distraint – The government seizes
personal properties to carry out the
payment of taxes.
Caesar R. Dulay Requisites:
Commissionar of
Internal Revenue • Taxpayer is delinquent (except in
constructive distraint);
• Demand has been made;
Arnel SD.
Guballa Marissa O. Lanee C. David
Celia C. King • Taxpayer fails to pay the said tax
Cabreros Deputy
Deputy
Deputy
Commissioner
Commissioner at the allotted time; and
Deputy
Commissioner
Operation
Commissioner Information
Resource
Management
• Period has not yet prescribed.
Legal Group Systems Group
Group Group
Two (2) Types of Distraint
• Actual – Actual confiscation of the
Figure 1. BIR Management Team personal property
• Constructive – Taxpayer is
Powers and Duties of Bureau of Internal banned from disposing of his
Revenue (BIR) property.
1. Assess and collect all national internal The following are cases where a
revenue taxes, fees, and charges taxpayer may be subject to
2. Enforce all forfeitures, penalties, and fines constructive distraint per Section
connected therewith 206 of the amended National
3. Execute judgments in all cases decided in its Internal Revenue Code (NIRC) if
favor by the Court of Tax Appeals (CTA) and he will:
ordinary courts o retire from any business
4. Give effect to and administer the supervisory subject to tax
and police power conferred to it by law o intend to:
5. Recommend to Secretary of Finance all ▪ leave the Philippines,
needful rules and regulations for the effective ▪ remove his property
enforcement of the provisions of the National therefrom, and
Internal Revenue Code ▪ hide or conceal his
property and perform
Powers of Commissioner of Internal Revenue any act tending to
1. Interpret tax laws subject to review by obstruct proceedings for
Secretary of Finance collecting his tax due.
2. Examine any book, paper, record, or other
data which may be relevant or material to a 2. Levy – The government seizes real
tax inquiry properties to carry out the payment of
3. Make assessments taxes.
4. Prescribe real property values by dividing the
country into different zones and determining B. Judicial Remedies
the fair market value (FMV) of real properties 1. Civil Actions
located in each zone 2. Criminal Actions – The taxpayer
5. Obtain any information from any person other may be imprisoned not by reason of
than those whose internal revenue tax liability non-payment of the assessed tax but
is subject to audit or investigation through criminal prosecution of
6. Authority to accredit and register individuals violations of the National Internal
and general professional partnership (GPP) Revenue Code (NIRC).
and their representatives who prepare and Remedies of the Taxpayer
file tax returns, statements, reports, and other 1. Administrative remedies
papers a. Protest – This is a challenge against
7. Prescribe additional procedural or an assessment where the taxpayer
documentary requirements in connection will contradict the final demand of the
with the submission or preparation of BIR.
financial statements accompanying tax return

First Year Comprehensive Exam (FYCE) Handout *Property of STI

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 BM1804 – Income Taxation

b. Refund – Remedy in case of excessive or erroneous payment of a tax with the BIR.

Tax Audit or Investigation

Issuance of Preliminary
Assessment Notice (PAN)

Replied within 15 days from

the date of receipt of PAN?

NO
BIR will issue a FINAL
Assessment Notice (FAN)

File a protest within 30 days

from the date of receipt of the
FAN
Denied
File a motion for
reconsideration to the CTA Appeal to CTA en banc
division within 15 days within 15 days
BIR denies the protest
from the receipt decision

Denied

File an appeal to Court of Tax Appeal to Supreme Court

Appeal (CTA) 30 days from the (SC) within 15 days
receipt of denial or within 30 CTA denies the appeal
days from the lapse of 180-day
period
Appeal to SC en banc within
15 days

DECISION IS FINAL
AND IRREVOCABLE
Denial of SC en banc

Figure 2. Taxpayers Remedy

Surcharges, Interest, Compromise Penalty Commissioner of Internal Revenue

These are in addition to the basic tax. (CIR).
1. Surcharges b. 50% surcharge
a. 25% surcharge i. Willful neglect; and
i. Failure to file any return and pay ii. Files only after prior notice of the
the tax due on time; BIR.
ii. Failure to pay the full or part of the 2. Interest
amount of tax shown on any return; a. Twenty percent (20%) cumulative per
iii. Failure to pay deficiency tax within year of any unpaid tax liability running
the time prescribed for its payment from the date of the prescribed payment
in the notice of assessment; and until the amount is fully paid
iv. Filing a return with an internal 3. Compromise
revenue officer other than those a. Ten percent (10%) of basic tax
with whom the return is required to assessed due to financial incapacity
be filed unless authorized by the

First Year Comprehensive Exam (FYCE) Handout *Property of STI

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 BM1804 – Income Taxation

b. Forty percent (40%) of basic tax
assessed due to doubtful validity
WEEKS 3–4 - INDIVIDUAL INCOME
TAXATION
Types of Taxable Individuals
1. Resident Citizen (RC) – Under Sec. 1. Art.
IV of the 1987 Constitution, the following are
citizens of the Philippines:
a. Those who are citizens at the time of the
adoption of the 1987 Constitution;
b. Those whose fathers or mothers are
citizens;
c. Those born before January 17, 1973 of
Filipino mothers, and who elect
Philippine citizenship upon reaching
majority age;
d. Those who are naturalized in accordance
with law; and
e. Whose residence is within the
Philippines.
2. Non-Resident Citizen (NRC) – According to
Sec. 22 (E) of the NIRC, non-resident citizen
of the Philippines who:
a. Establishes to the satisfaction of the
Commissioner his definite intention to
reside abroad;
b. Leaves the Philippines during the taxable
year to reside abroad on a permanent
basis either as an immigrant or
employee;
c. Works and derives income from abroad
and whose employment thereat requires
him to be physically present abroad most
of the time (183 days or more) during the
taxable year; and
d. Has been previously considered as non-
resident citizen and who arrives in the
Philippines at any time during the taxable
year to reside permanently in the
Philippines (taxable on his income
derived from the date of his arrival).
3. Resident Alien (RA) – Not a citizen of the
Philippines but is residing within the
Philippines.
a. Foreign individuals who have stayed in
the Philippines for more than one (1) year
b. An alien who:
i. Is not a mere transient or sojourner;
ii. Comes to the country for a definite
purpose that requires extended stay
in the Philippines; and
iii. Comes to the country without a
definite intention as to his stay
4. Non-Resident Alien (NRA)
a. Non-Resident Alien Engaged in Trade or
Business (NRAETB)
i. Stay in the Philippines for >180 days
during the year.
b. Non-Resident Alien Not Engaged in
Trade or Business (NRANETB)
ii. Stay in the Philippines for ≤ 180 days
during the year.
Note: For NRC, it is 183 days. For NRAs, it is 180 days.
Special Individual Taxpayers
1. Non-resident alien cinematographic film
owner, lessor, or distributor
• Subject to 25% final tax on gross income
2. Subcontractor, whether citizen, resident
alien, or NRAETB, of service, contractors
engaged in petroleum operations
• Subject to 25% final tax on gross income
3. Filipinos registered with the Board of
Investments (BOI) availing of Income Tax
Holiday (ITH)
• Exempt
4. *PEZA-registered individuals availing of ITH
• Exempt
5. PEZA-registered individuals availing of 5%
Gross Income Tax (GIT)
• Subject to 5% GIT
6. Individual registered as a Barangay Micro-
economic Business Enterprise (BMBE)
• Exempt
7. Minimum Wage Earners (MWEs)
• Exempt
* Philippine Economic Zone Authority
Only registered activities of the PEZA- and BOI-
registered individuals will be exempt. Income
derived from the unregistered activities will be
subject to Regular Income Tax.
Summary of Individual Returnable Income
Sources
Taxpayer Tax Base Tax Rate
of Income
R.C. Within a. Taxable For a and
and Compensation b,
Without Income; graduated.
NRC Within
R.A. Within For c, 8%

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 BM1804 – Income Taxation

Taxpayer
Sources
Tax Base Tax Rate
contract price, compensation, service fee,
of Income rental, or royalty, including the amount
NRAETB Within b. Taxable Net charged for materials supplied with the
Income; or services, and deposits and advance
payments actually or constructively received
c. Gross
Sales/Receipts
during the taxable period for the services
Plus Non- performed or to be performed for another
Operating person
Income 3. Gross Sales – Equal to the total sales
NRANETB Within Gross Income 25% F.T. transactions net of value-added tax (VAT), if
applicable, reported during the period,
Determining Whether Income Within or without any other deductions
Without Exception: If subject to 8% income tax rate,
Income Source of Income these will be deducted:
Interest Income Residence of the debtor a. Sales return and allowances; and
Income from services Place of performance b. Discounts determined and granted at
Rent Location of property
the time of sales.
Royalty Place of use of
4. Taxable Income – Equal to gross income
intangible
Gain on sale of real Location of property
less deductions
property
Gain on sale of personal Place of sale Minimum Wage Earner – A worker in the private
property purchased in sector who is paid with a statutory minimum wage
one country and sold in (SMW) rates, or to an employee in the public
another sector with compensation income of not more
Dividend from domestic Income within than the statutory minimum wage rates in the
corporation non-agricultural sector where the employee is
Dividend from domestic Income without assigned. The minimum wage earner is
corporation Except: If 50% or more exempted from income tax.
(≥ 50%) of the gross
income of the foreign
corporation for the Pure Compensation Earner – Taxable income
preceding three (3) for compensation earners is the gross
years prior to the compensation income less non-taxable benefits.
declaration of dividend Husband and wife shall compute their individual
or from its existence was income tax rate separately.
derived from sources
within the Philippines, Note: Any income that cannot be attributed or
then part of the dividend identified as income exclusively earned by either of the
is income within. spouses, the same shall be divided equally.
Sale of domestic shares Income within
Sale of foreign shares Income without Individual Earning Purely from Self
Income from Partly within and without Employment or Practice of Profession – If their
transportation and other gross sales/receipts and other non-operating
services rendered partly income do not exceed the VAT threshold of
within and partly without P3,000,000, they shall be subject to either of the
following:
Regular Income Taxation for Individual 1. Graduated rates
Terminologies used in Section 2 of R.R. No. 8- i. This is the default scheme.
2018: 2. Eight percent (8%) on gross sales or
1. Compensation Income – All remuneration receipts and other non-operating income
for services performed by an employee for ii. The intention to be taxed at 8% must
his employer under employee–employer be signified at the initial quarter of the
relationship, unless specifically excluded by taxable year. Otherwise, the taxpayer
the Code will be subject to graduated rates.
2. Gross Receipts – The total amount of Even if the taxpayer initially selected the 8%
money or its equivalent representing the income tax rate but exceeded the VAT threshold

Qualifying Examination (QE) Handout *Property of STI

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 BM1804 – Income Taxation

of P 3,000,000 during the taxable year, the Benefits Limit of Exemption

taxpayer shall automatically be subject to the Employees’ achievement
graduated rates. award (e.g., for the length
of service or safety
achievement, which must P10,000/year
Mixed Earner – Individuals who earn income
be in the form of tangible
from both compensation and self-employment. personal property other
• Compensation income – Graduated than cash or gift certificate)
rates Gifts made during
• Income from self-employment – Used Christmas and major P5,000/year
the rules used in the discussion of anniversaries
individual Earning Purely from Self Daily meal allowance for 25% of the basic
Employment or Practice of Profession overtime work and minimum wage on a
night/graveyard shift per-region basis
Benefits received under
collective bargaining
VAT- Yes P10,000
Graduated agreement and productivity
Registered incentive schemes
Tax Rates
plus 12%
VAT WEEK 6 - FINAL WITHHOLDING TAX
No

It is a withholding tax that is prescribed only for

Gross Sales/Receipt certain payors and is not creditable against the
exceeded the P3,000,000 Yes income tax due of the payee for the taxable year.
VAT threshold
No Final Withholding for Individual
Withholding Tax for Non-Resident Alien Not
Engaged in Trade or Business (NRANETB) is
8% tax on 25% of all the gross income from all sources
Graduated
gross Or Tax Rates within the Philippines, except for interest earned
sales/receipt plus 3% from foreign currency deposit units, in which he is
s (in excess percentage exempt.
of P250,000) tax
Citizen and
Figure 3. Individuals earning income purely from self- Passive Income NRAETB
employment or practicing of profession RA
Interest from any peso 20% 20%
currency deposit
De Minimis and Other Benefits
Yield or monetary 20% 20%
Benefits Limit of Exemption
benefit from deposit
Monetized unused vacation substitutes, trust
leave credits of private 10 days funds, and similar
employees arrangements
Monetized value of vacation Royalties 20% 20%
and sick leave credits paid
No limit
to government officials and Except royalties on
employees books, literary works, 10% 10%
Medical cash allowance to P1,500/semester; and musical
dependents of employees P250/month compositions
Rice subsidy P 2,000 or one sack Prizes of more than 20% 20%
of 50kg. rice/month 10,000
amounting to not
more than P2,000 Except prizes of *Included in *Included
Uniform and clothing 10,000 or less the ITR in the
P 6,000/year
allowance ITR
Actual medical assistance Winnings 20% 20%
(e.g., medical allowance to
P10,000/year
cover medical and PCSO and Lotto Exempt if Exempt
healthcare needs, etc.) Winnings P10,000 or
Laundry allowance P300/month less

Qualifying Examination (QE) Handout *Property of STI

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 BM1804 – Income Taxation

Passive Income
Citizen and
NRAETB
Where:
RA 𝐹𝑟𝑖𝑛𝑔𝑒 𝐵𝑒𝑛𝑒𝑓𝑖𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒 = 𝑀𝑜𝑛𝑒𝑡𝑎𝑟𝑦 𝑉𝑎𝑙𝑢𝑒
Interest from 15% Exempt
depositary bank under Excluding: Then,
foreign currency NRC for they
𝐺𝑈𝑀𝑉 = 𝐹𝐵𝑇 𝐷𝑢𝑒 + 𝑀𝑜𝑛𝑒𝑡𝑎𝑟𝑦 𝑉𝑎𝑙𝑢𝑒
deposit system are Exempt
Interest income from Exempt Exempt
long-term investments A. Housing Fringe Benefits
of five (5) years or Housing Annual Monetary
more Privilege Value of Value
Benefit
If pre-terminated, with Lease of Amount of 50% x
the following remaining residential rental paid rental
maturity: property for payments
o Four (4) years to 5% 5% residential use
less than five (5) of employee
years Assignment of Fair Market [5% (FMV
o Three (3) years to 12% 12% residential Value (FMV) or Z.V.,
less than four (4) property for the or Zonal whichever
years use of employee Value (Z.V.), is higher]
o Less than three 20% 20% whichever is
(3) years higher
Cash or property 10% 20% Purchase of Acquisition 5% x AC
dividend received from residential cost (A.C.), x 50%
a domestic corporation property on exclusive of
or regional operating installment basis interest
headquarter of a for the use of
multinational company employee
Share of an individual 10% 20% Purchase of The FMV or FMV or
partner in the after-tax residential Z.V., Z.V.,
net income of a property and whichever is whichever
business partnership ownership is higher is higher
transferred in
* Subject to Regular Income Tax, to be part of the name of the
employee
Other Income.
B. Motor Vehicles
WEEK 7 - FRINGE BENEFITS TAX (FBT)
Motor Vehicle Annual Monetary
Privilege Value of Value
It is a tax to any good, service, or other benefit Benefit
furnished or granted in cash or kind by an Purchase of Acquisition A.C.
employer to an individual managerial and motor vehicle in Cost (A.C.)
supervisory employee. the name of the
employee
Under TRAIN, the following rates must be Cash for the Cash Cash
observed. purchase received by received
Taxpayers Fringe Benefit Grossed- provided by the employee by
Rate up Divisor employer employee
R.C., NRC, R.A. 35% 65% Purchase on an Acquisition AC/5
NRANETB 25% 75% installment basis Cost (A.C.)
by the employer
in the name of
Valuation of Fringe Benefits the employee
Grossed-up Monetary Value (GUMV) – It A portion of Amount Amount
represents the whole amount of income realized purchase price shouldered shouldere
by the employee. shouldered by by the d by the
𝑀𝑜𝑛𝑒𝑡𝑎𝑟𝑦 𝑉𝑎𝑙𝑢𝑒 the employer employer employer
𝐺𝑈𝑀𝑉 =
𝐺𝑟𝑜𝑠𝑠𝑒𝑑 − 𝑢𝑝 𝐷𝑖𝑣𝑖𝑠𝑜𝑟

𝐺𝑈𝑀𝑉 = 𝐹𝐵𝑇 𝐷𝑢𝑒 + 𝐹𝑟𝑖𝑛𝑔𝑒 𝐵𝑒𝑛𝑒𝑓𝑖𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒

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 BM1804 – Income Taxation

Motor Vehicle Annual Monetary G. Educational Assistance

Privilege Value of Value Subject to FBT Not subject to FBT
Benefit Cost of education If:
A fleet of motor Acquisition (AC/5) x assistance which is a. The education or
vehicles owned cost divided 50% borne by the study involved is
and maintained by five (5) employer directly connected
by the employer years with the employer’s
for the use of the trade, business, or
business and profession
employee. b. There is a written
A fleet of motor Rental Rental contract that the
vehicles leased Payments payments employee is under
by the employer x 50% obligation to remain
for the employee in the employ of the
employer for a
C. Use of aircraft – Treated as business use, period time mutually
thus, will be subject to fringe benefit tax. agreed upon
D. Use of yacht – Treated as taxable fringe Cost of educational If the assistance was
benefit. The value of benefit is based on the assistance provided through a
extended by an competitive scheme
depreciation at an estimated useful life of 20 employer to the under the scholarship
years. dependents an program of the company
E. Interest on loans at less than legal rate – employee
The difference between the interest assumed
by the employee and the benchmark interest H. Cost of Insurance
rate. Subject to FBT Not subject to FBT
F. Foreign Travel Expenses Cost of life or health Contributions of the
Subject to FBT Not subject to FBT insurance and other employer for the
a. Traveling Reasonable expenses non-life insurance benefit of the
expenses paid of the employee paid by premiums allowed employee, pursuant to
by the the employer to attend by the employer for the provision of
employer for business meetings or his employee existing law, such as
the travel of foreign conventions: SSS or GSIS
the family Cost of premiums
members a. Inland travel allowed by the
b. Lodging cost in expenses such as employer for the group
a hotel or expenses for food, insurance of his
similar beverage, and employees
establishment local transportation
in excess of b. Cost of lodging in I. Other Expenses Subject to Fringe Benefit
US$ 300 a hotel or similar
Tax
c. Thirty percent establishment
of the cost of amounting to an 1. Household expenses
the first-class average of US$ 2. Membership fees, etc.
airplane 300 or less per day 3. Holiday and vacation expenses
d. No c. Cost of economy
documentary and business WEEK 8 - GROSS INCOME
evidence class airplane
showing that tickets Items of Gross Income
the employee’s d. Seventy percent 1. Compensation of services in whatever form
travel abroad of the cost of first-
paid, including fees, salaries and wages,
was in class airplane
connection tickets commissions, and similar items
with business 2. Gross income derived from the conduct of a
meetings or trade or business or the exercise of a
conventions, profession
all of the cost 3. Gains from dealings in property
or expenses 4. Interests
will be subject 5. Rents
to FBT 6. Royalties

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7. Dividends
8. Annuities
9. Prizes and winnings
10. Pensions
11. Partners’ distributive share from the net
income of the general professional
partnership
Classifications of Compensation Income
1. Basic salary or wage
• Salary refers to the earnings received
periodically for regular work.
• Wage according to specified intervals of
work, as by the hour, day, or week.
2. Honoraria – These are payments given in
recognition for services performed for which
established practice discourages charging a
fixed fee.
3. Fixed or variable allowances – These are
fixed or variable transportation,
representation, cost of living allowances
(COLA), and other allowances that are
received by a public officer or employee or
officer or employee of a private entity.
4. Commission – It is usually a percentage of
total sales or on a certain quota of sales
volume attained as part of the incentive, such
as sales commission.
5. Fees – These are received by an employee
for the services rendered to the employer,
including a director’s fee of the company,
fees paid to the public officials, etc.
6. Retirement pay – It refers to a lump-sum
payment received by an employee who has
served a company for a considerable period
and has decided to withdraw from work into
privacy. In general, retirement pay is taxable
except in the following instances:
a. SSS or GSIS retirement pays
b. Retirement pay due to old age, provided
that the following requisites are met:
i. BIR Commissioner approves the
retirement program.
ii. It must be a reasonable benefit
plan.
iii. The retiree should have been 50
years old at the time of retirement.
iv. It should have been availed of for
the first time.
7. Separation pay – It is taxable if availed
voluntarily by the employee . It shall not be
taxable if involuntary.
Examples of involuntary separation:
a. Death
b. Sickness
Qualifying Examination (QE) Handout
BM1804 – Income Taxation
c. Disability
d. Reorganization/Merger of the company
e. Company on the brink of bankruptcy
8. Pension – It is a stated allowance paid
regularly to a person on his retirement or his
dependents on his death, in consideration of
past services, exemplary work, age, loss, or
injury.
9. Other forms of compensation – Other
forms received due to service rendered are
compensation paid in kind. Note that
compensation can be paid in kind, but taxes
are generally paid in money.
Exclusions from Gross Income
1. Life insurance – These are the proceeds of
life insurance policies paid to the heirs or
beneficiaries upon the death of the insured,
whether in a single sum or otherwise.
However, if the insurer holds such amounts
under an agreement to pay interest thereon,
the interest payments shall be included in
gross income.
2. The amount received by the insured as a
return of premium – This is the amount
received by the insured as a return of
premiums paid by him under life insurance,
endowment, or annuity contracts.
3. Gifts, bequests, and devises – The value of
property acquired by gift, bequest, devise, or
descent; provided, however, that income
from such property, in cases of transfers of
divided interest, shall be included in gross
income.
4. Compensation for injuries or sickness –
This is the amounts received, through
Accident or Health Insurance or under
Workmen’s Compensation Acts, as
compensation for personal injuries or
sickness, plus the amounts of any damages
received, whether by suit or agreement, on
account of such injuries or sickness.
5. Income exempt under the treaty – It is an
income of any kind to the extent required by
any treaty obligation binding upon the
government of the Philippines.
6. Retirement benefits, pensions, gratuities,
etc. (Bureau of Internal Revenue, 2018)
a. Retirement benefits received by officials
and employees of private firms:
i. The retiring official or employee has
been in the service of the same
employer for at least 10 years and is
not less than 50 years of age at the
time of his retirement; and
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 BM1804 – Income Taxation

ii. shall be availed of by an official or WEEK 9 - DEDUCTIONS FROM GROSS

employee only once. INCOME
b. Any amount received by an official or
employee or by his heirs from the Deductions are items or amounts which the law
employer as a consequence of his allows to be deducted from the gross income of a
separation from the service of the taxpayer to arrive at taxable income and thereby
employer for any cause beyond his determine the amount of the tax which is due (De
control Leon & De Leon, 2016).
i. The provisions of any existing law to
the contrary notwithstanding, social Exclusions Deductions
security benefits, retirement Refers to the flow of Refers to the amounts
gratuities, pensions, and other wealth which are not which the law allows to
treated as part of gross be subtracted from
similar benefits received by a
income due to the gross income to arrive
resident or non-resident citizen of the following: (1) exempted at net income
Philippines or aliens who come to by the fundamental law;
reside permanently in the Philippines (2) exempted by the
from foreign government agencies statute; (3) does not
and other institutions, private or come within the
public. definition of income
ii. Payments of benefits any person Pertains to the Pertains to the
residing in the Philippines under the computation of gross computation of net
laws of the United States income income
Something earned or Something spent or
administered by the United States
received by the paid on earning of gross
Veterans Administration. taxpayer which do not income
iii. Benefits received from Social SSS form part of gross
and GSIS income
7. Miscellaneous items
a. Income derived by foreign government – Requisites for Deductibility
Income derived from investments in the Deduction is strictly construed against the
Philippines in loans, stocks, bonds or taxpayer. They are not presumed but allowable
other domestic securities, or from interest only because of specific provisions of law and not
on deposits in banks in the Philippines under any general equitable or constitutional
b. Income derived by the government or its concept.
political subdivisions – Income derived
from any public utility or the exercise of The taxpayer seeking a deduction must be able
any essential governmental function to prove that he is entitled to the deduction which
accruing to the government of the the law allows. Adequate records should be kept
Philippines or any political subdivision to support deductions, except when the law
thereof dispenses the records, documents, or receipts to
c. Prizes and awards – Made primarily in support the deductions.
recognition of religious, charitable, Any amount paid or payable, which is otherwise
scientific, educational, artistic, literary, or deductible from or considered in computing gross
civic achievement but only if: income or for which depreciation or amortization
i. the recipient was selected without may be allowed, shall be allowed as deduction
any action on his part to enter the only if it is shown that the tax required to be
contest; deducted and withheld therefrom has been paid
ii. no substantial service is required to the BIR.
d. Prizes and awards in sports competition
– All prizes and awards granted to Types of Deductions
athletes in local and international sports Deductions from gross income are classified as
competitions and tournaments follows:
1. Optional standard deduction (OSD)
2. Regular allowable itemized deduction
3. Special allowable itemized deduction

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According to the Implementing Income Tax
Provisions of R.A. No. 10963, R.R. No. 8-2018, in
general, there shall be allowed at the option of the
taxpayer, itemized deductions, or an Optional
Standard Deduction (OSD) at the rate of 40%. In
the case of individual taxpayers, OSD shall be
computed at the rate of 40% of gross
sales/receipts, as the case may be. Corporations
may elect a standard deduction in an amount not
exceeding 40% of its gross income.
However, no deductions shall be allowed to
individual taxpayers earning compensation
income arising from personal services rendered
under an employer–employee relationship, and
those who opted to be taxed at 8% income tax
rate on their income from the business/practice of
the profession (Bureau of Internal Revenue,
Revenue Regulations No. 8-2018, 2018).
Itemized Deductions
These are the allowable itemized deductions:
1. Ordinary and necessary trade, business, or
professional expenses
• Salaries, wages, and other forms of
compensation for personal services
rendered, including the grossed-up
monetary value of fringe benefit
granted by the employer to the
employee
• Travel expenses
• Rentals
• Entertainment, amusement, and
recreational expenses
• Other necessary business expenses
Requisites for deductibility:
• Must be ordinary and necessary
• Paid or incurred during the taxable year
• Connected with trade, business, or
practice of the profession
• Supported by sufficient evidence
• Not against the law, morals, public
policy, or public order
• Must have been subjected to
withholding tax, if applicable
2. Interest
Requisites for deductibility:
• There must be an indebtedness;
• The indebtedness must be that of the
taxpayer;
• The indebtedness must be connected
with the taxpayer’s trade, business, or
practice of the profession;
Qualifying Examination (QE) Handout
BM1804 – Income Taxation
• There must be a legal liability to pay
interest; and
• It must be paid or incurred during the
taxable year.
3. Entertainment, Amusement, and
Recreation
These are subject to the following ceilings:
• One-half percent (½%) of net sales for
taxpayers engaged in sale of goods or
properties; and
• One percent (1%) of net revenue for
taxpayers engaged in sale of services
4. Taxes
General Rule: Taxes paid or incurred within
the taxable year in connection with the
taxpayer’s profession, trade, or business,
shall be allowed as deduction.
5. Losses
• Casualty losses
• Net operating loss carry-over (NOLCO)
• Capital losses and securities becoming
worthless
• Special losses
a. Losses from wash sales of stock
or securities
b. Wagering losses
c. Abandonment losses
6. Bad debts
Requisites for deductibility:
• There must be an existing
indebtedness due to the taxpayer,
which must be valid and legally
demandable;
• The same must be connected with the
taxpayer’s trade, business, or practice
of the profession;
• The same must not be sustained in a
transaction between related taxpayers;
• The same must be charged off in the
books of accounts of the taxpayer as of
the end of the taxable year; and
• The same must be ascertained to be
worthless and uncollectible.
7. Depreciation
Requisites for deductibility:
• The property subject to depreciation is
used in the trade, business, or practice
of the profession;
• The allowance for depreciation must
be sustained by the person who owns
or who has a capital investment in the
property;
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 BM1804 – Income Taxation

• The allowance for depreciation must • Donations to accredited non-

be reasonable; government organizations:
• The allowance for depreciation should a. Organized and operated
not exceed the cost of the property; exclusively for science, research,
• The schedule of the allowance must be education, character building,
attached to the return. youth and sports development,
health, social welfare, culture,
8. Depletion of oil and gas wells and mines charitable purposes, or a
In the case of oil and gas wells or mines, combination thereof;
capital invested may be amortized using b. No part of the net income of which
cost-depletion method provided: inures to the benefit of any private
• When allowance for depletion shall individual; and
equal capital invested, no further c. The level of administrative
allowance shall be granted; and expense of which shall, on an
• After production in commercial annual basis, in no case exceed
quantities has commenced, intangible 30% of the total expenses.
exploration and development drilling
costs shall be treated as follows: 10. Research and development
Kinds Treatment If not chargeable to Claim as outright
Incurred for non- Deductible in the capital account expense
producing wells year incurred If chargeable to At the option of the
and/or mines capital account but taxpayer:
Incurred for At the option of the not chargeable to
property subject to OPTION 1: Claim as
producing wells taxpayer: outright expense
and/or mines depreciation or
OPTION 1: depletion OPTION 2: Amortize
Deductible in full in over 60 months
the year paid or If chargeable to Capitalize
incurred property subject to
OPTION 2: depreciation or
Capitalized and depletion
amortized
In the case of non-resident aliens engaged in 11. Pension trusts
a trade or business or resident foreign Amount deductible:
Actual contribution to the extent of P xxx
corporations, depletion shall be allowed only
pension’s liability
if the oil and gas wells or mines are located in Amortization of past service cost xxx
the Philippines. Total P xxx
9. Charitable and other contributions
• Pension liability is equivalent to normal
The following charitable contributions shall
cost.
be fully deductible:
• Past service cost is the excess of
• Donations to the government of the actual contributions over the normal
Philippines or any of its agencies or
cost. It shall be amortized over 10
political subdivisions, including fully-
years.
owned government corporations,
exclusively to be used in undertaking
Optional Standard Deductions
activities in education, health, youth,
The intention to be taxed at the OSD must be
sports development, human
signified by the taxpayer. Otherwise, he shall be
settlements, science and culture, and
considered of having availed of the itemized
economic development;
deductions. Such election of the option, when
• Donations to foreign institutions or made in return, shall be irrevocable for the
international organizations which are taxable year for which the return is made.
fully deductible in pursuance of
agreements, treaties, commitments, or The OSD allowed individual taxpayers, except
special laws; and non-resident aliens, shall be 40% of gross
sales/receipts during the taxable year. An

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individual who is entitled to and claimed for the
OSD shall not be required to submit with the tax
return such as Financial Statements, otherwise
required under the Tax Code, as amended. A
General Professional Partnership (GPP) may
avail of the OSD only once, either by the GPP or
the partners comprising the partnership (Bureau
of Internal Revenue, Revenue Regulations No. 8-
2018, 2018).
WEEKS 11–13 - INCOME TAX ON
CORPORATIONS
Corporations are subject to seven (7) types of
income taxes:
A. Standard Income Tax
1. Net Income Tax (on Ordinary Income)
2. Final Withholding Tax (on Passive
Income)
3. Capital Gains Tax (on Capital Gains)
B. Penalty Income Tax
4. Minimum Corporate Income Tax (MCIT)
5. Improperly Accumulated Earnings Tax
(IAET)
C. Special Income Tax
6. Gross Income Tax (GIT)
7. Branch Profit Remittance Tax (BPRT)
Corporation Defined
According to Section 22(B) of the NIRC, the term
“corporation” shall include:
a. Partnerships, no matter how it was
created or organized;
b. Joint-stock companies;
c. Joint accounts;
d. Associations; or
e. Insurance companies.
Corporation does not include:
a. General professional partnership
b. Joint venture formed for the purpose of
i. undertaking construction projects; or
ii. engaging in petroleum, coal,
geothermal and other energy
operations under an operating
agreement of a service contract with
the government
Classifications of Corporations
1. Domestic Corporations
a. In general, those that are incorporated
under the Philippine Laws
b. Government-owned and -controlled
corporations (GOCCs) (excluding SSS,
GSIS, PHIC, LWDS);
c. Taxable partnerships;
Qualifying Examination (QE) Handout
BM1804 – Income Taxation
d. Proprietary educational institutions / non-
profit hospitals;
e. Foreign Currency Depositary Units
(FCDUs) of domestic banks;
f. Service contractors or subcontractors
engaged in petroleum operations;
g. Ecozone enterprises; and
h. Exempt corporations
2. Resident Foreign Corporations
a. In general, those that are incorporated
outside the Philippine Laws but establish
their physical presence in the Philippines;
b. Resident international carriers;
c. Offshore banking units (OBUs);
d. Regional operating headquarters
(ROHQs) of multinational companies
(MNCs); and
e. Service contractors or subcontractors
engaged in petroleum operations
3. Non-Resident Foreign Corporations
a. In general, those that are incorporated
outside the Philippine laws and do not
establish their physical presence in the
country;
b. Non-resident cinematographic film
owner, lessor, or distributor;
c. Non-resident owners/lessor of vessels
chartered by Philippine Nationals; and
d. Non-resident owners/lessors of aircraft,
machinery, and other equipment.
4. Exempt Corporations
a. Nonstock and non-profit educational
institution;
b. Government educational institution;
c. Civic league or organization not
organized for profit but operated
exclusively for the promotion of social
welfare; and
d. Labor, an agricultural or horticultural
organization not organized principally for
profit.
Penalty Taxes Imposed on Corporations
A. Minimum Corporate Income Tax
1. Subject
• All corporations that are subject to
30% Regular/Normal Corporate
Income Tax (RCIT/NCIT)
2. Rate and Base
• Rate – 2% of gross income
• Base – The taxpayer shall pay
whichever is higher between
Minimum Corporate Income Tax
(MCIT) and the (RCIT/NCIT).
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 BM1804 – Income Taxation

3. Effectivity Formula of IAET:

• Fourth taxable year immediately Current Years Taxable Income
following the year in which the Plus:
corporation commenced its 1. Income exempt from tax
business—in short, on the fifth year 2. Income subject to final tax
of operations (𝑥 + 4) 3. Income excluded from gross income
4. Carry forward 4. Amount of NOLCO
• Excess MCIT over RCIT shall be Less:
carried and credited to Regular 1. Dividends actually or constructively paid for the
Income Tax Due for the three (3) year
immediate succeeding taxable
2. Income taxes paid for the year (both income tax
years.
and final tax)
5. Rules in Computation
3. Amount reserved for reasonable needs of the
• Excess MCIT, if any, for the year is
business, from applicable years taxable
computed annually, that is, in the
income or 100 % paid – up capital, whichever
fourth quarterly (annual) return. Special Income Taxes
is higher
• Quarterly tax shall be the higher A. Branch Profits Remittance Tax (BPRT)
Equals: IAE
between RCIT/NCIT and MCIT. 1. Transaction subject
• If the quarterly tax due is the MCIT, • Profit remitted by a branch of a
MCIT from previous taxable years is foreign corporation
not allowed to be credited/deducted. 2. Rate and Base
• If the quarterly tax due is the • Rate – 15% final tax
RCIT/NCIT, MCIT from previous • Base – Total profit applied or
taxable years is allowed to be earmark for remittance
credited/deducted. 3. Income not treated as branch profits
• Income that is not connected with the
B. Improperly Accumulated Earnings Tax trade or business in the Philippines
(IAET) 4. Tax treaties
1. Subject • Tax treaties may reduce the 15%
• Domestic corporations that are international treaties
classified as closely held B. Gross Income Tax (GIT)
corporations (corporations where at The option to be taxed at 15% of gross
least 50% of the total voting power of income instead of the 30% net income tax
all classes of stock is owned directly 1. Corporations given the option
or indirectly by not more than 20 • Domestic and resident foreign
individuals) corporation
2. Rate and Base 2. Requisite conditions
• Rate – 10% of the Improperly a. Twenty percent (20%) tax effort ratio
Accumulated Earnings (IAE) on Gross National Product (GNP);
• Base – Improperly Accumulated b. Forty percent (40%) income tax
Earnings collection ratio to total tax revenue of
3. Corporations that are NOT subject to the country;
IAET (Key: BPI TENG) c. Four percent (4%) VAT tax effort of
• Banks and other non-bank financial GNP; and
intermediaries d. 0.9% ratio of Consolidated Public
• Publicly held corporations Sector Financial Position to GNP.
• Insurance companies
• Taxable partnerships Summary of Returnable Income for
• Enterprise duly registered in Tourism Corporation
Infrastructure and Enterprise Zone Taxpayer Sources of Tax Base Tax
Authority (TIEZA) and PEZA Income Rates
Domestic Within and Net Income 30%
• Non-taxable joint ventures
Without
• General professional partnerships RFC Within only Net Income 30%

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 BM1804 – Income Taxation

NRFC Within only Gross Income FWT Corporations Tax Rates

of 30% Ecozone enterprises Five percent (5%)
(PEZA) and tourism gross income tax on
Summary of Final Taxes for Corporation enterprises registered registered activities.
Domestic with Tourism The said tax is in lieu of
Passive Income NRFC Infrastructure and other national and local
and RFC
Interest on currency bank 20% 20% Enterprise Zone taxes, except Expanded
deposit Authority (TIEZA) Withholding Taxes
Yield or any other (EWT), FBT, and
monetary benefit from: Withholding on
Compensation.
• Deposit substitutes 20% 30%
• Trust funds and
20% 30% Income from non –
similar arrangements
registered activities will
Royalties 20% 30% be subject to regular
Interest under a income tax.
depositary bank under 7.5% (RFC) Microfinance Non- 2% on its gross
30%
the expanded foreign 15% (DC) government receipts from
currency deposit system Organization (NGO) microfinance, in lieu of
Prizes Income Tax 30% all national taxes.
Return (ITR)
Resident Foreign Corporations Subject to
WEEKS 15–16 - INCOME TAX ON SPECIAL Special Tax Rates
CORPORATIONS Corporations Tax Rates
International carriers 2 ½% of Gross
Domestic Corporations Subject to Special doing business in the Philippine Billings
Tax Rates Philippines
Corporations Tax Rates Offshore Banking Units a. 10% final tax –
Proprietary educational Preferential rate of (OBUs) Income from foreign
institutions (PEIs) 10% of taxable net currency loans
income within and granted to Philippine
without the Philippines residents
Non-profit Hospitals Preferential rate of b. 10% final tax –
(NPH) 10% of taxable net Interest income from
income within and foreign currency
without the Philippines interbank deposits
FCDU of a local bank a. 10% final tax – c. Exempt – Income
under the Expanded Income from foreign from foreign
Foreign Currency currency loans currency
Deposit System (FCDS) granted to Philippine transactions with
residents non-residents,
b. 10% final tax – OBUs, local
Interest income from commercial banks,
foreign currency and branches of
interbank deposits foreign banks
c. Exempt – Income Regional or Area Exempt from the
from foreign Headquarter income tax
currency Regional Operating Ten percent (10%) of
transactions with Headquarter their taxable income
non-residents, Service contractors Eight percent (8%)
OBUs, local engaged in petroleum final tax on gross
commercial banks, operations income
and branches of Ecozone Enterprises 5% gross income tax
foreign banks (PEZA) and Tourism on registered activities.
Service contractors Eight percent (8%) Enterprises registered The said tax is in lieu of
engaged in petroleum final tax on gross with Tourism other national and local
operations income Infrastructure and taxes, except Expanded
Enterprise Zone Withholding Taxes
Authority (TIEZA) (EWT), FBT, and

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 BM1804 – Income Taxation

Corporations Tax Rates For electronic filing and payment system (eFPS)
Withholding on Taxpayer – The return shall be e-filed, and the tax
Compensation. shall be e-paid on or before the 15th day of April
of each year, covering income for the preceding
Non-Resident Foreign Corporations Subject taxable year using the eFPS facilitates through
to Special Tax Rates the BIR website.
Corporations Tax Rates
Non-resident 25% Final Tax However, non-eFPS tax filers may opt to use the
cinematographic film electronic format under “eBIRForms” for the
owner, lessor, or preparation, generation, and submission and/or
distributor payment of this return with greater ease and
Non-resident owner or 4 ½% Final Tax on accuracy.
lessor of vessels gross rentals or charter
charted by Philippine fees Date of Filing
nationals
a) Individual – On or before April 15 of the
Non-resident owner or 7 ½% Final Tax on
lessor of aircraft, gross rentals or charter
following year for the taxable income of the
machinery, and other fees previous year. Under the TRAIN Law, they
equipment shall file a quarterly income tax return:
Interest on foreign loans 20% Final Tax
1st Quarter May 15
contracted on or after
August 1, 1986 2nd Quarter August 15
3rd Quarter November 15
Annual April 15
Week 17 - FILING OF RETURNS AND
PAYMENT OF TAXES b) Corporations – Quarterly, returns for the first
three (3) quarters are strictly on a 60-day
Persons Liable to File Income Tax Return basis and the final quarter or adjusted return
• Every Filipino citizen residing in the on the 15th day of the fourth month following
Philippines; the close of either fiscal or calendar year.
• Every Filipino citizen residing outside the
Philippines on his income from sources
within the Philippines; END
• Every alien residing in the Philippines, on
income derived from sources within the
Philippines; and
• Every non-resident alien engaged in trade
or business or in the exercise of a
profession in the Philippines.

Place of Filing
General Rule: The return shall be filed with:
1. An authorized agent bank (AAB);
2. Revenue District Officer (RDO), Collection
Agent, or duly authorized Treasurer of the
city or municipality in which such person
has his legal residence or principal place of
business in the Philippines; or
3. If there be no legal residence or place of
business in the Philippines, with the Office
of the Commissioner.
For non-electronic filing and payment system
(Non-eFPS) Taxpayer – Apply the general rule in
filing.
References:
Bureau of Internal Revenue. (2018). Computation of
gross income.
https://www.bir.gov.ph/index.php/tax-
code.html#title2
Bureau of Internal Revenue. (2018, January 25).
Revenue Regulations No. 8-2018. Author.
De Leon, H. S. (2016). The Law on sales, agency and
credit transactions. Rex Book Store.
De Leon, H. S., & De Leon, H. M. (2016). The law on
income taxation. REX Printing Company, Inc.
De Vera, J. L. (2018). Quicknotes in taxation. GIC
Enterprises & Co., Inc.
Valencia, E. G., & Roxas, G. F. (2017). Income
taxation: Principles and laws with accounting
applications. Valencia Educational Supply.

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