TOPICS – INCOME TAXATION

1. TAXATION
Definition
Purpose
Aspects

2. Inherent Powers of the State

Similarities/distinctions among the 3 State powers

3. Theory & Basis of Taxation

Scope of the Power of Taxation

4. Essential elements of a Tax

Nature/Characteristics of the Power of Taxation

5. Classification of Taxes
Elements of a sound Tax system
Situs of Taxation

6. Inherent & constitutional Limitations on the state’s Power to Tax

Tax distinguished from other terms

7. Double Taxation
Means of Avoiding /Minimizing the burden of Taxation
Exemption from Taxation
Sources of Tax Laws
Internal Revenue laws
Construction of Tax laws
Taxpayer’s suit
8. INCOME TAX FOR INDIVIDUALS
Definition – Individual Taxpayer
Classification of Individual Taxpayers
With Illustrative problems

9. Individual Taxpayers
Applicable Taxes & Tax Rates
Sources of Income
Types/Categories of Income
With Illustrative Problems

10. Capital Gains Tax

With Illustrative Problems

11. Passive Income

Final withholding Tax
Creditable withholding Tax
With Illustrative Problems

12. Taxable Income, Tax Rates & Tax due

- Purely Compensation Income
- With Illustrative problems

13. Taxable Income & Tax Due

- Purely Self Employed & professionals (SEP)
- 8% Income Tax Rate
- With Illustrative problems

14. Taxable Income & Tax Due

- Mixed Income Earners
- With Illustrative problems

15. Quarterly Income Tax Returns

Income Tax Due for Married Individuals
Income Tax for Minimum Wage Earners
With Illustrative Problems

16. Preparation and filing of Income Tax Returns for INDIVIDUAL taxpayers
With Illustrative problems
17. Computation of Taxable Income & Tax Due for
- Non Resident Citizen
- Non Resident Alien Not engaged in Trade or Business
- Non Resident Alien Engaged in Trade or Business
- With Illustrative Problems

18. Taxation of Income Received by Social Media Influencers

19. Taxation of Corporations

Classification of Income Taxpayers Other Than Individuals
Definition of Corporation for Taxation Purposes
Tax Exempt Corporations
Classification of Corporations

20. Types of Income for Corporations

Applicable Tax Rates & Tax Due
Illustrative problems

21. Computation of Regular corporate Income Tax TRAIN vs CREATE

Domestic Corporation
Resident foreign Corporation
Non Resident foreign Corporation
GOCC
Illustrative problems

22. Minimum Corporate Income Tax TRAIN vs CREATE

Illustrative Problems

23. Quarterly and Annual Corporate Tax Due

Illustrative problems

24. PASSIVE INCOME for Corporations TRAIN vs.CREATE

Filing of Returns
Illustrative problems

25. Capital Gains Tax for Corporations TRAIN vs CREATE

Filing of Returns
Illustrative problems
26. Special Corporations
Computation of Income Tax due under TRAIN AND CREATE
- Non profit Proprietary Educational Institutions
- Non Profit Hospitals
- Illustrative problems
27. Special Corporations
Computation of Income Tax due under TRAIN AND CREATE for
Resident Foreign Corporations
- International Carriers
- ROHQ
- RHQ
- Offshore banking Units
- Illustrative problems
-
28. Special Corporations
Computation of Income Tax due under TRAIN AND CREATE for
Non Resident Foreign Corporations
- Owner or lessor of vessel
- Cinematographic film owner/lessor/distributor
- Lessor of aircraft machinery & other equipment
Illustrative problems

29. Improperly Accumulated Earnings Tax under

TRAIN
CREATE
Illustrative problems

30. Preparation & filing of corporate Income Tax

Illustrative problems

31. Income Tax on Partnerships

32. Taxation of Co-Ownership & Estates

33. Taxation of Trusts

Preparation of ITR

34. GROSS INCOME

Definition,
Compensation Income
Gross Income for Business
35. Gross Income
- Gains derived from dealings in property
- Interest Income
- Rental Income
- Royalties
- Dividends
-
36. Gross Income
- Annuity
- Prizes & winnings
- Pensions
- Partners’ Share in NI of GPP
- Income from Whatever Source

37. Exclusions from Gross Income

- Nature of Exemption
- Grounds for granting tax exemptions
- Tax exemption, tax amnesty, tax condonation
- Illustrative examples

38. Items of Income or proceeds excluded from Gross Income

- Life Insurance
- Amount Received by the Insured as a Return of Premium
- Gifts, bequests & Devises
- Compensation for Injuries or Sickness
- Income Exempt under Treaty

39. Items of Income or proceeds excluded from Gross Income

- Retirement benefits under RR 2-98
- Separation Pay
- Social Security benefits
- Benefits received under US Veterans Administration
- SSS benefits
- GSIS benefits

40. Items of Income or proceeds excluded from Gross Income

- Miscellaneous Items – a to h
- Retirement Benefits under Bayanihan Act I
- Tax Exempt Proceeds under Bayanihan Act II
41. Deductions from Gross Income
- Nature
- Exclusions vs Deductions
- Capital Expenditure vs Revenue Expenditure
- Deduction vs Tax Credit
Illustrative Examples

42. Deductions from Gross Income under

- Section 34(B & C)
Illustrative problems

43. Deductions from Gross Income under

- Section 34(D)
- NOLCO
Illustrative problems

44. Deductions from Gross Income under

- Section 34 (E, F, G)
- Illustrative problems
-
45. Deductions from Gross Income under
- Section 34 (H, I, J)
- Other allowable Deductions under Special Laws
- Illustrative problems
-
46. Optional Standard Deduction
Illustrative Problems

47. Foreign Tax Credit

Illustrative problems

48. Fringe benefit Tax & Fringe benefit Tax

Definition & Nature
Tax Exempt Fringe benefits ( Except de Minimis benefits)
Illustrative Problems

49. De Minimis Benefits

Illustrative Problems

50. Items of Fringe benefits subject to Fringe benefit Tax

Computation of Fringe benefit Tax
Illustrative problems
51. Computation of Fringe benefit Tax for
Housing Benefits
Illustrative Problems

52. Computation of Fringe benefit Tax for

Motor Vehicles
Illustrative problems

53. Civil Penalties

- Surcharge
- Illustrative problems

54. Civil penalties

- Interest
- Illustrative problems

55. Criminal Penalties

- Compromise penalties
- Tax amnesty
- Illustrative problems

56. Tax Remedies

- Assessment & Collection
- Compromise, abate, Refund, Credit Taxes
- Illustrative problems

57. Remedies of the Government for the Collection of Delinquent Taxes

Illustrative problems

58. Remedies of the Taxpayer

Illustrative Problems

59. Role of Accounting in Taxation

Methods of Accounting for Taxpayers
- Cash basis
- Accrual basis
- Hybrid Method
- Crop year
- Percentage of Completion
- Illustrative Problems
-
60. Methods of Accounting for Taxpayers
- Deferred payment basis
- Installment basis
- Leasehold Improvements

Accounting periods

Illustrative Problems

61. Compliance Requirements

- Keeping of Books of Accounts
- Preservation of Books of Accounts
-
62. Primary Registration Requirement
Registration Updates
Registration of persons conducting business through electronic media

63. Issuance & printing of receipts, sales invoices or commercial invoice

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Applicable Taxes and Tax Rates