Professional Documents
Culture Documents
Chap 2.1
Chap 2.1
Chap 2.1
1% = goods
2% = services
5% = rentals
POV ni B:
Sales 100,000
Non operating Income -
Net Taxable income 100,000
Tax due (either gr or 8%) 30,000
Previously PT (12,000)
CWT (5,000)___
PASSIVE INCOME SUBJECT TO FINAL Tax Payable 13,000
WITHOLDING TAX
**100,000 yung irereport na sales ni B since to the buyer; hence this are exempt
imaminus din naman yung CWT sa pagkuha to income tax but to percentage or
ng payable. STT 6/10 of 1%)
**ang mag fa-file ng 5k ay si A (withholding Should not be a dealer in securities
agent) at magbibigay ng Form 2307 si B. (hence this is subject to basic
income tax and VAT)
Should result to capital gain based
CAPITAL GAIN TAX
on TAX BASE (NOT LOCAL
Subject to ITR: (under non-operating STOCK EXCHANGE)
income)
Selling Price xx
Cost (xx)
Capital Gain xx
Rate 15%
Capital Gain Tax xx
Exemptions Requisites:
Sale of principal residence is exempt of 6%
CGT when:
Proceeds is fully utilized in acquiring
or constructing a new principal
residence within 18 months. If there
s no full utilization, the portion of the
gain shall be subject to capital gain: Purely Compensation Income Earner
Graduated rate:
(294,000 – 250,000) x 15% =6,600 TAX
DUE
SELF EMPLOYED
- Sole proprietor or an independent
contractor who reports income
earned from self-employment.
- Income is derived purely from the
LESS THAN 3M:
practice of profession not under
employee-employer relationship.
8% in lieu of expenses
- Tax Base: Net sales
MORE THAN 3M: - Purely Self Employed and Mixed
Earners can avail this.
- Employee earning compensation
income CANNOT avail this.
- Unless the taxpayer signifies his/her 1 st
quarter return of taxable intention to
elect 8% income tax, s/he shall be
considered availed graduated tax.
Net Sales xx
Non-operating income xx
COMPUTATION OF TAXABLE INCOME Gross Income xx
FOR SEP/BUSINESS INCOME: Deductible (250k)
Taxable net income Pxx
STEP 1: Get the Net Taxable Income
Sales xx
This is NOT available to the following
(Discount) (xx)
individual taxpayers:
(Allowances) (xx)
(Return)_____ (xx) 1. VAT – registered taxpayers (exceed
Net Sales xx the 3,000,000 threshold)
Cost of Sales or Cost of Services) 2. Taxpayers subject to Other
Gross Income xx Percentage Tax other than the 3%
Non Operating Income xx OPT under section 116.
(Expenses)______ (xx) 3. Partners of general professional
Taxable Income Pxx partnership (GPP)
4. Individuals enjoying income tax
STEP 2: Find where the taxable income fall exemption or gross sales/receipts
under the graduated table or 8% in lieu of were not derived from VAT-exempt
expenses (whatever is applicable) sales and transactions.
5. Taxpayers who fail to signifiy their
intention to avail of 8% income tax
rate in January Income tax return or
TWO WAYS TO COMPUTE TAX DUE
in the 1st quarter percentage tax
Graduated rates return, or in the initial quarterly
- Tax Base: Taxable income return of the taxable year upon
commencement of a new business
or practice of profession.
a. 200,000 EXEMPT
b. 375,000
a. He is a resident citizen
(375,000 -250,000) x15% = P18,750
Gross Income: 1,500,000 + 3,700,000 +
100,000 + 150,000 = 5,450,000 c. 950,000
Business Expenses: 900,000 + 3,000,000 + (950,000 – 800,000) x 25% + 102,500
30,000 + 100,000 = 4,030,000 =P140,000
5,450,000 – 4,030,000 = P1,420,000 d. 3,300,000
e. (3,300,000 – 2,000,000) x 30% + 402,500
= 792,500
b. Nonresident citizen
1,500,000 + 3,700,000 = 5,200,000
EXAMPLE #3: TAX DUE
900,000 + 3,000,000 = 3,900,000
5,200,000 – 3,900,000 =P1,300,000
c. Resident Alien
Same with letter b.
**correction gross receipts instead na gross sales
d. NRA – EBT since service dapat kasi accountant
Same with letter b.
a. He does not avail the 8% under
e. NRA - NEBT TRAIN Law
**gross income based hindi kasama ang Graduated rate: (800,000 -400,000)
expenses x 20% + 22,500 = 102,500
8% not allowed!