Excel Professional Services, Inc.

Management Firm of Professional Review and Training Center (PRTC)

(LUZON) Manila 87339344 * Calamba City, Laguna * Dasmariñas City, Cavite * Lipa City,
Batangas (0917) 8852769 * (VISAYAS) Bacolod City (034) 4346214 * Cebu City (032)
2537900 loc. 218 (MINDANAO) Cagayan De Oro (0917) 7081465 * Davao City (082) 2250049

TAXATION

TAX.3607-4 NARANJO/SIAPIAN/WONG/CRUZ/GUDANI
INCLUSIONS and EXCLUSIONS FROM GROSS INCOME MAY 2024

DISCUSSION QUESTIONS:

A. Inclusions from Gross Income

B. Exclusions from Gross Income
C. Capital gains subject to capital gains tax
D. Passive income subject to final tax
E. Exempt by virtue of special law or Tax Code

1. Proceeds from non-life insurance.

2. Proceeds from life insurance.
3. Amounts received as a return of premium.
4. Compensation for work done in the Philippines.
5. Compensation for professional service in the Philippines.
6. Compensation for services rendered outside the Philippines.
7. Compensation for injuries or sickness.
8. Actual damages.
9. Moral damages.
10. Exemplary damages.
11. Nominal damages.
12. Compensatory damages for paying salary because the employee cannot go to his job.
13. Compensatory damages for paying the losses due to death of the victim.
14. Payment of wage in cash.
15. Payment of wages in property.
16. Gross sales less cost of sales.
17. Selling price less cost.
18. Gains derived from selling capital asset other than real property classified as capital asset and shares of
stocks not listed in stock exchange.
19. Gain from sale of real property classified as capital asset.
20. Gain from sale of shares of stocks not listed in stock exchange.
21. Interest income from bank deposits in the Philippines.
22. Interest income from bank deposits outside the Philippines.
23. Dividends from domestic corporations.
24. Dividends from foreign corporations (dominant income is in Philippines).
25. Dividends from foreign corporations (dominant income is outside the Philippines).
26. Interest from lending investors in the Philippines.
27. Rentals in the Philippines.
28. Rentals outside the Philippines by a resident citizen.
29. Rentals outside the Philippines by a domestic corporation.
30. Royalty subjected to final tax.
31. Royalty earned abroad by a domestic corporation.
32. Royalty earned abroad by a resident citizen.
33. Gain on sale of personal property in the Philippines.
34. Gain on sale of personal property outside the Philippines by a resident citizen.
35. Gain on sale of personal property outside the Philippines by a domestic corporation.
36. Prizes in the amount of Php 20,000.
37. Prize in the amount of Php 10,000.
38. Prize in sports competition in the Philippines by a Filipino amateur player.
39. Prize in sports competition outside the Philippines by a Filipino amateur player.
40. Prize received by a teacher for being one of the best teacher in the University.
41. Prize received by a priest for being one of the best priest in the Philippines.
42. Prize received by a scientist organized by the Department of Science and Technology.
43. Prize received by an artist in one of the competition in artistry.
44. Prize received by a volunteer for serving the community.
45. Prize received by a non-government organization for its charity.
46. Income of foreign government.
47. Income of local government.
48. Income exempt as agreed upon by the Philippines and foreign states.
49. Retirement benefit of a 29 year old employee.
50. Retirement benefit of a 60 year old employee (10 years in service) from a retirement plan of a company.
51. Retirement benefit of a 60 year old employee (10 years in service) from a company (no retirement plan).
52. Retirement benefit of a 50 year old employee (10 years in service) from a retirement plan of a company.
53. Retirement benefit of a 50 year old employee (10 years in service) from a company (no retirement plan).
54. Retirement benefit of a 60 year old employee (5 years in service) from a retirement plan of a company.
55. Retirement benefit of a 60 year old employee (5 years in service) from a company (no retirement plan).
56. Retirement benefit of a 60 year old employee (10 years in service) from a retirement plan of a company
(previously retired).
57. Retirement benefit of a 60 year old employee (10 years in service) from a company (no retirement plan
and previously retired).
58. Separation pay by reason of death.
59. Separation pay due to a disease that is not serious.
60. Separation pay due to a disease that is serious.
61. Separation pay due to other physical disability.
62. Separation pay due to redundancy.
63. Separation pay due to insolvency of the company.
64. Separation pay due to installation of labor saving devices.
65. Separation pay due to voluntary resignation.
66. Separation pay due to closure by the government.
67. Thirteenth month pay Php 50,000.
68. Thirteenth month pay exceeding the threshold.
69. Mandatory contributions (SSS, GSIS, Philhealth, Pagibig).
70. Union dues.
71. Gifts.
72. Donations.
73. Devises.
74. Legacies.
75. Income of devises.
76. Income of legacies.
77. Pensions from retirements.
78. Pensions from SSS, GSIS.
79. Pensions for veterans paid by the US government.
80. Lotto (Php 10,000).
81. Lotto (Php 1 Million).
82. Franchise fee received by Jollibee in the Philippines.
83. Franchise fee received by Jollibee in Japan.
84. Franchise fee received by Adidas in the Philippines.
85. Franchise fee received by Adidas in Japan.
86. Income from illegal gambling.
87. Income from graft and corruption.
88. Income proceeding from smuggling.
89. Income from Bingo for a cause.
90. Unreturned and unutilized excess election contributions.
91. Income from sale of personal laptop.
92. Special risk allowance received by a doctor employed in a public hospital Php 1 million.
93. Special risk allowance received by a doctor employed in a private hospital Php 1 million.
94. Compensation to the heirs of medical frontliner who died due to COVID-19 – Php 1 million.
95. Compensation to the medical frontliner who contracted severe or critical case of COVID-19 – Php 10,000.
96. Compensation to the medical frontliner who contracted severe or critical case of COVID-19 – Php
100,000.
97. Compensation to the medical frontliner who contracted severe or critical case of COVID-19 – Php 1M.
98. Compensation to the medical frontliner who contracted mild or moderate case of COVID-19 – Php
10,000.
99. Compensation to the medical frontliner who contracted mild / moderate case of COVID-19 – Php
100,000.
100. Compensation to the medical frontliner who contracted mild or moderate case of COVID-19 – Php 1
million.

END