[IB PowerPoint Side Show ~ Corporate Income Taxation - PowerPoint te Ta eel Ts TAXATION 1} PowerPoint Side Show - Corporate Income Taxation - PowerPoint PLLISNW NESS NON —INDIVIDUAL TAX PAYERS = Estates and Trusts engaged in trade or business = Corporations including partnerships no matter how created or organized = Domestic corporations receiving income from sources within and outside the Philippines = Foreign Corporations receiving income from sources within the Philippines a Slide 3 0371 PowerPoint Slide Show - Corporate Income Taxation - PowerPoint Artificial being created by operation of law, having the right of succession and the ittributes and @© CORPORATION feels oteen (RA 11232 REVISED CORPORATION CODE) poi apes aa 4 existence [® PowerPoint Side Show ~ Corporate income Taxation ~ Pow OL UT ESSN CORPORATIONS = one person corporations (OPCs) = partnerships no matter how created or organized * joint stock companies accounts = associations = insurance companiesEXEMPT CORPORATIONS The follwing orga eee ee ana * Labor, agriautural or horticultural organization not orgonized! principally for profit * Mutwol savings bank not having a capital sock represanted by sharee and coeparative bank ‘without capital stock arganized and operated for mutval purposes ond without profit * A beneficiary society, order or association operating for exclusive benefit ofthe members such as ‘rotercl orgonization operating under the lodge ystom, or a mutual sold association or non. ‘Hock corporation organized by employees providing forthe payment of Fe, sickness, accident fend other benefit exclusively 1 the members * Cemetery company owned and operated exclusively forthe benefits of ts members * Nan-stock or corporation or asociation organized ond operated exclusively for religious, charitable, scientific, athletic or cultural purposes or for rehabilitation of veterans , no part of ts net income or asset shall belong to or ina to the benefit of ary member, organize, officer or ‘ny specific parson q 1 Poweromnt de Shaw - Corperate Income Taaton- PoverPoit EAGT TIN\ NESS a aa se a * Baines: league, chambor of commerce, or board of trade, not organized for prot and no pot of the net income Of which nxt the benefit of ary private siockolder or individual * Civic league or organization not organized for prof but opera exchsvely for the premotion of soil welfare * A norstock ond not-proi educational insttion * Government edxctiona insivton + Farmers or other muta! typhoon of fre insoronce company, muta ich o gation company, rmuuol ot ceeperalve telephone conpony,o ike erganzaton of « purely local character, the Income of which cms solely of essessnans, des ond fees coleded from members forthe sole purpose of masting ts expensce1D PowerPoint Slide Show - Corporate Income Taxation - PowerPoint LOK UTE SSS + Former frit growers or lke association organized ond operated cs @ soles agent forthe prpore of marketing the produto member ond frring back o them fhe proceeds oF sole {esr the neconcry sallng expenses on the bass of quontty of prodeced fiahed by fem. Slide #0 37 < > BB 1 Fowerroint Sise Show ~ Corporate Income Taxation - PowerPoint VLU INNES CLASSIFICATIONS OF CORPORATE TAXPAYERS A. Domestic Corporation (DC)- created and organized in the Philippines under its law B. Foreign Corpor: sident Foreign Corporation (RFC)- created and ‘organized in a foreign country under its laws and engaged in business in the Philippines Non-resident Foreign Corporation (NRFC)- created and ‘organized in foreign country under its laws and is not engaged in trade or business in the Philippines[@ PowerPoint Slide Show - Corporate Income Taxation - PowerPoint 7 FLT SS DOMESTIC CORPORATIONS ® Domestic corporations in general including OPC. = Government-owned and controlled corporations * Taxable Partnerships * Proprietary Educational Institution = Non- profit Hospitals a PowerPoint Side Show - Corporate Income Taxation - PowerPoint - 1p LOK ATEN NESS A. Ordinary Corporations — subject to equlet corporate income tax (RCM) also known as normal tax or basic tax at rate either 20% for domestic corporations classified as MSME's or 25% for domestic corporations other than MSME’s and foreign corporation. Under TRAIN LAW (from Jan. 1, 2018 ~ July 1, 2020) the RCIT rate was 30% B. Special Corporations — subject to income tax rate which is lower than the regular corporate income tax (RCIT) as the case maybe.OE KX UT BS YESS ‘MICRO SMALL AND MEDIUM ENTERPRISES (MSME'S) FOR DOMESTIC CORPORATION * Domestic corporations with total assets of P 100 million and below and Net Income of P 5million and below * Total assets excludes the land on which the particular business entity's office, plant and equipment are situated during the taxable year for which the tax is imposed 1 PowerPoint Slide Show - Corporate Income Taxation - PowerPoint TABLES GOVERNMENT OWNED OR CONTROLLED CORPORATIONS (GOCCS * Genecol ule All corporations agencies or nskumenaities owned o¢ cone bythe goverment cere subjed 0 20% oF 25% (old rate 80%) RCIT on ther lxabe income. EXCEPTIONS Government Service iurance System (SIS) . Sacto Secunty Syston © Philippine Heath ond surance Corporation Local WteeDisict Note HOM o Pog ig exempt rom fax pon he effec of CREATE LAW on Api 11, CSO and PAGCOR ate taxable GOCE