Professional Documents
Culture Documents
Individual Market
Individual Market
Individual Market
Individual benefits.
Shifting • De Minimis Fringe Benefit
• Employee’s Share – SSS, GSIS, Philhealth, and
➢ Transfer of the burden of a tax by the original PAG-IBIG
payer to someone else. o Hindi exempted, nile-less lang sa Gross
➢ Only indirect taxes may be shifted. Income
• Union Dues
Formula:
3. Graduated Rates
Value Added Tax = Output VAT – Input VAT
➢ Non-Resident Citizen
Categories of Individual Taxpayers
1. Within the Philippines
➢ Resident Citizen
2. Taxable Net Income or Gross Sales
o Filipino at nakatira sa Pilipinas.
➢ Non-Resident Citizen Formula of Taxable Net Income:
o Filipino na hindi nakatira sa Pilipinas.
o 183 days or more during the year which Sales/Receipts, net of returns, allowances, & discount
is physically present abroad. (Cost of sales/Cost of services)
o Example: OFW Gross Income from Operation
➢ Resident Alien (Itemized Deductions or OSD)
o Hindi Filipino pero nakatira sa Pilipinas. Net Income from Operation
o Example: Foreigner Add: Non-Operating Income
➢ Non-Resident Alien Share in GPP net income
o Hindi Filipino at hindi rin nakatira sa Taxable Net Income
Pilipinas. 3. Graduated Rates or 8% (IF their income is derived in
2 types of Non-Resident Alien: the Philippines)
Rules for Filing the 3 Quarterly ITRs & Annual ITR of ➢ Less than 3 years – 20%
Individual Taxpayer ➢ 3 years to less than 4 years – 12%
➢ 4 years to less than 5 years – 5%
1. Cumulative Filing – pagsasama-samahin ang 1st, 2nd,
and 3rd Quarter.
2. Compensation Income is included only in the Annual
CAPITAL GAINS TAX
ITR while Business Income is included in all ITRs.
3. 1st Quarter – May 15 A. Share of Stock in Domestic Corporation not Traded
in Stock Exchange
2nd Quarter – August 15
➢ 15% Final Tax in Sale/Adjusted Basis
3rd Quarter – November 15
B. Shares of Stock Listed and Traded thru Local Stock
Annual ITR – April 15 next year
Exchange
➢ 6/10 of 1% of gross selling price or value
Wash Sales ➢ Historical Cost = pinaka-unang binili.
➢ Ginagawa thru selling shares nang palugi to get Formulas:
loss para bumaba ang taxable income at tax
due. Adjusted Basis = Historical Cost + Inabono
➢ BIR imposed 61-day rule of repurchase period. Adjusted Historical Cost = Utilized / GSP = Answers x
➢ 30 days before and after ng pagbenta. Historical Cost
Formula for Non-Deductible Loss: Final Tax on Informer’s Reward
Non-Deductible Loss = Repurchase / 1st Sold = Asnwer x ➢ Informer should no be anak ng pinsan ay
(1st purchase price – 1st sold price) nagtatrabaho sa BIR.
Formula for Tax Basis of Re-Acquired Shares: Formula:
nd
New Tax Basis = 2 Purchase Price + Non-Deductible 1. Lower of 10% of revenues or 1 million per case.
Loss
2. After that, 10% Final Tax.
Note: Total of Deductible and Non-Deductible is equal
to Loss.
Formula for Gain on Sale:
Gain on Sale = 2nd Selling Price – Cost
On the Sale of Real Property classified as Capital Asset
➢ 6% of the gross selling price.
➢ BIR Assessment vs. CP Assessment (whichever
is higher)
➢ Individual Seller has holding period:
o Short-term or less than 1 year = 100%
o Long-term or more than 1 year = 50%
o Corporation = 100%
➢ Capital Loss is deducted to Capital Gain only.
o If negative ang sagot, 0, since hanggang
net capital gain lang.
Sale of Real Property to Government
➢ Pwedeng 6% CGT or Graduated Rates
Sale of Principal residence
➢ Highest principal residence para mataas ang tax
due.
➢ Need ma-utilize within 18 months or 1 year a
half.
➢ Pag nabenta within 30 days, notify si
commissioner.
➢ Tax Exemption = 10 years
Proceeds of Sale not Fully Utilized
➢ Compare the sold principal residence to new
purchase principal residence.
Formula:
New Purchase – 1st Sold / Gross Selling Price = Answer x
Higher between GSP or FMV = Taxable Portion