Assignment 3:

Your annual basic salary is 𝑃ℎ𝑝 600,000 + Holiday pay - 𝑃ℎ𝑝 10,000 + Hazard pay - 𝑃ℎ𝑝 20,000 +
Overtime pay - 𝑃ℎ𝑝 20,000 + Fixed transportation allowance - 𝑃ℎ𝑝 10,000 + Cost of Living Allowance -
𝑃ℎ𝑝 20,000 + 13th month pay - 𝑃ℎ𝑝 50,000 + Other benefits - 𝑃ℎ𝑝 20,000 - De minimis benefit of 𝑃ℎ𝑝 -
20,000

Gross Taxable Income = 730,000

SSS - 𝑃ℎ𝑝 5,000 + Phil health - 𝑃ℎ𝑝 5,000 + Pagibig - 𝑃ℎ𝑝 5,000 + Total withholding tax on
compensation – 𝑃ℎ𝑝 79,500

Allowable Deductions = 94,500

Gross Taxable Income 730,000 − Allowable Deductions 94,500

= 635,500

 5% - 0 to 10,000 pesos

 P500 10% of the excess over P10,000 - 10,001 to 30,000 pesos

 P2,500 15% of the excess over P30,000 - 30,001 to 70,000 pesos

 P8,500 20% of the excess over P70,000 - 70,001 to 140,000 pesos

 P22,500 25% of the excess over P140,000 - 140,001 to 250,000 pesos

 P50,000 30% of the excess over P250,000 - 250,001 to 500,000 pesos

 P125,000 32% of the excess over P500,000 - more than 500,000 pesos

Reference: https://www.expat.com/en/guide/asia/philippines/12878-tax-in-the-philippines.html

 For the first ₱10,000: 5% = ₱10,000 x 5% = ₱500

 For the excess over ₱10,000 to ₱30,000: (₱30,000 - ₱10,000) x 10% = ₱2,000
  For the excess over ₱30,000 to ₱70,000: (₱70,000 - ₱30,000) x 15% = ₱6,000

 For the excess over ₱70,000 to ₱140,000: (₱140,000 - ₱70,000) x 20% = ₱14,000

 For the excess over ₱140,000 to ₱250,000: (₱250,000 - ₱140,000) x 25% = ₱27,500

 For the excess over ₱250,000 to ₱500,000: (₱500,000 - ₱250,000) x 30% = ₱75,000

 For the excess over ₱500,000: (₱635,500 - ₱500,000) x 32% = ₱43,600

500 + 2,000 + 6,000 + 14,000 + 27,500 + 75,000 + 43,600

income tax payable is =168,600

Assignment 4:

Gross Sales= Php2,000,000

Cost of Sales 𝑃ℎ𝑝1,000,000 + Salaries and Wages 𝑃ℎ𝑝360,000 + Depreciation 𝑃ℎ𝑝 50,000 +
Representation Expense 𝑃ℎ𝑝 10,000 + Office Rent 𝑃ℎ𝑝 240,000 + Condominium Rent 𝑃ℎ𝑝 240,000 +
Utilities in Office 𝑃ℎ𝑝 120,000 + Electricity Expenses in Condominium 𝑃ℎ𝑝 60,000 +
Registration Fees of Delivery Car and Other Taxes 𝑃ℎ𝑝 5,000 + Gas and Oil for Delivery Car 𝑃ℎ𝑝
50,000 + Registration Fees of Personal Car and Other Taxes 𝑃ℎ𝑝 5,000 +
Gas and Oil of Personal Car 𝑃ℎ𝑝 120,000

Total Cost of Sales and Expenses = Php1,780,000

Gross Sales Php2,000,000 −Total Cost of Sales and Expenses Php1,780,000

Net Taxable Income = Php220,000

Net Taxable Income Php 220,000 × 8%

 Income Tax = Php17,600

Withholding Taxes

 1st quarter 2307 - Php 5,000

 2nd quarter 2307 - Php 5,000
 3rd quarter 2307 - Php 5,000
 4th quarter 2307 - Php 5,000

Php5,000 + Php5,000 + Php5,000 + Php5,000

Total Tax Credits = Php20,000

Income Tax Php17,600 − Total Tax Credits Php20,000 − Tax Payments Php75,000

Income Tax Payable= −Php77,400

eligible for a refund or tax credit in the next tax year

Assignment 5:

Gross Sales Php2,000,000 − Cost of Sales Php1,000,000 – Expenses ( Salaries and wages of staff Php
360,000 + Depreciation of car used in delivery Php 50,000 + Representation expense Php 10,000 +
Office Rent expense Php 240,000 + Rent expense on your condominium (Php - 240,000) + Utilities in
office Php 120,000 + Electricity expenses in condominium Php 60,000 + Registration fees of delivery
car and other taxes Php 5,000 + Gas and oil Php 50,000 + Registration fees of personal car and other
taxes Php 5,000 + Gas and oil of personal Php 120,000

= Php1,280,000

 For the first ₱250,000: 0%

 For the excess over ₱250,000 to ₱400,000: 20%

 For the excess over ₱400,000 to ₱800,000: 30%

 For the excess over ₱800,000 to ₱2,000,000: 32%

  For the excess over ₱2,000,000 to ₱8,000,000: 35%

 For the excess over ₱8,000,000: 35%

Reference: https://kpmg.com/ph/en/home/insights/2023/01/whats-in-and-whats-out-in-2023.html#:~:text=The%20income%20tax
%20shall%20be%20computed%20based%20on,PhP400%2C000.00%20-%2015%20percent%20of%20excess%20over
%20PhP250%2C000.00

 For the first ₱250,000: 0%

 For the excess over ₱250,000 to ₱400,000: ₱150,000 x 20% = ₱30,000

 For the excess over ₱400,000 to ₱800,000: ₱400,000 x 30% = ₱120,000

 For the excess over ₱800,000 to ₱1,280,000: ₱480,000 x 32% = ₱153,600

₱30,000 + ₱120,000 + ₱153,600

Total Income Tax = ₱ 303,600

Withholding Taxes

 1st quarter 2307 - Php 5,000

 2nd quarter 2307 - Php 5,000
 3rd quarter 2307 - Php 5,000
 4th quarter 2307 - Php 5,000

Php5,000 + Php5,000 + Php5,000 + Php5,000

Total Tax Credits = Php20,000

Total Income Tax Php303,600 −Total Tax Credits Php20,000 − Tax Payments Php5,000

deductions are Income Tax Payable = Php278,600

Assignment 6:

Gross Sales Php10,000,000 − Cost of Sales Php5,000,000 – Expenses (Salaries and wages of employees
Php 2,000,000 + Depreciation Php 500,000 + Rent expense Php 500,000 + Utilities in office Php
200,000 + Gas and oil Php 200,000 + Representation expense Php 50,000 + Registration fees of car and
other taxes Php 50,000

Net Taxable Income = Php1,500,000

Net Taxable Income Php1,500,000 × 30%

Income Tax = Php450,000

Withholding Taxes

 1st quarter 2307 - Php 50,000

 2nd quarter 2307 - Php 50,000
 3rd quarter 2307 - Php 50,000
 4th quarter 2307 - Php 50,000

Php5,000 + Php50,000 + Php50,000 + Php50,000

Total Tax Credits = Php200,000

Income Tax Php450,000 − Total Tax Credits Php20,000 − Tax Payments Php50,000

Income Tax Payable = Php200,000

no excess tax