Marquez, Rich Humphrey C.

BSBA – 32E1 – MM

FOR ORAL RECITATION:

DEFINE THE FOLLOWING TERMS:

1. BUSINESS INCOME
2. PASSIVE INCOME
3. COMPENSATION INCOME
4. CAPITAL GAINS FROM SALE FROM REAL PROPERTY
5. FRINGE BENEFITS
6. INCOME
7. TAX
8. RESIDENT CITIZEN
9. RESIDENT ALIEN
10. CITIZEN

1. Business Income - the amount of money, property, and other transfers of value received over a
set period of time in exchange for services or products.
2. Passive Income - Passive income is income generated from someone other than an employer or
a contractor. It can be generated by earning interest on savings, getting cash back or rewards on
a credit card, renting out a space, purchasing dividend-paying stocks, and so on.
3. Compensation Income - Compensation measures the total remuneration, in cash or in kind, that
accrues to employees in return for their work during the accounting period, regardless of when
they are paid.
4. Capital Gains from Sale from Real Property - The sale of all capital assets (land, building, and
commercial space) is nonexempt from capital gains tax. The rate for this tax is six percent (6%) of
the gross selling price or fair market value at the time the sale occurred, whichever amounts to
higher
5. Fringe Benefits - 'Fringe benefits' are defined as any goods, services, or other benefits furnished
or granted in cash or in kind by an employer to an individual employee, except rank and file
employees
6. Income - The term “income” generally refers to the amount of money, property, and other
transfers of value received over a set period of time in exchange for services or products. There
is no single, standard definition: income is defined according to the context in which the concept
is used.
7. Tax - A tax is a mandatory payment or charge collected by local, state, and national governments
from individuals or businesses to cover the costs of general government services, goods, and
activities.
8. Resident Citizen - Generally an alien who is present in the Philippines for at least 2 years is a
resident alien. An alien who stays in the Philippines for less than 2 years is considered a non-
resident alien. There are two classifications of a non-resident alien: engaged in trade or business
in the Philippines.
9. Resident Alien - Generally an alien who is present in the Philippines for at least 2 years is a
resident alien. An alien who stays in the Philippines for less than 2 years is considered a non-
resident alien.
10. Citizen - A citizen is a person who, by place of birth, nationality of one or both parents, or
naturalization is granted full rights and responsibilities as a member of a nation or political
community.