Gross compensation (salary and other business) ₱ 455,000

Less: Tax exempt 13th month bonus 30,000

Gross taxable compensation income ₱ 425,000

A.

Gross taxable compensation income ₱ 425, 000

Less: Personal Deduction 50, 000
Net Taxable compensation income ₱ 375, 000

From tax table, tax due for ₱ 375, 000 is computed as follows:
₱ 50,000 + 30% of the excess over ₱ 250, 000

₱ 50, 000 + 30% (₱ 375, 000 – ₱ 250, 000) = ₱ 125, 000

B.

Gross taxable compensation income ₱ 425, 000

Less: Personal deduction 50, 000
Less: Additional deduction 25, 000
Net taxable compensation income ₱ 350, 000

From tax table, tax due for ₱ 350, 000 is computed as follows:
₱ 50,000 + 30% of the excess over ₱ 250, 000

₱ 50, 000 + 30% (₱ 350, 000 – ₱ 250, 000) = ₱ 100, 000

C.

Gross taxable compensation income ₱ 425, 000

Less: Personal Deduction 50, 000
Net Taxable compensation income ₱ 375, 000

From tax table, tax due for ₱ 375, 000 is computed as follows:
₱ 50,000 + 30% of the excess over ₱ 250, 000

₱ 50, 000 + 30% (₱ 375, 000 – ₱ 250, 000) = ₱ 125, 000

D.
 Gross taxable compensation income ₱ 425, 000
Less: Personal Deduction 50, 000
Net Taxable compensation income ₱ 375, 000

From tax table, tax due for ₱ 375, 000 is computed as follows:
₱ 50,000 + 30% of the excess over ₱ 250, 000

₱ 50, 000 + 30% (₱ 375, 000 – ₱ 250, 000) = ₱ 125, 000

E.

Gross taxable compensation income ₱ 425, 000

Less: Personal Deduction 50, 000
Net Taxable compensation income ₱ 375, 000

From tax table, tax due for ₱ 375, 000 is computed as follows:
₱ 50,000 + 30% of the excess over ₱ 250, 000

₱ 50, 000 + 30% (₱ 375, 000 – ₱ 250, 000) = ₱ 125, 000

PROBLEM 2

Revenue from consultancy services ₱ 853, 000

Less: 40% standard deductions 341, 000
Taxable income from business or profession ₱ 511, 800

Taxable income from business or profession ₱ 511, 800

Net Taxable compensation income 0
Total taxable income ₱ 511, 800

A.

Personal Deduction ₱ 50,000

Taxable income from business or profession 511, 800
Total taxable income ₱ 461, 800

From tax table, tax due for ₱ 461, 800 is computed as follows:
₱ 125,000 + 32% of the excess over ₱ 500, 000

₱ 125, 000 + 30% (₱ 461, 800 – ₱ 250, 000) = ₱ 211, 800

B.

Less: Personal deduction ₱ 50, 000

Less: Additional deduction 20, 000
Taxable income from business or profession 511, 000
Total taxable income ₱ 436, 800

From tax table, tax due for ₱ 436, 800 is computed as follows:
₱ 125,000 + 32% of the excess over ₱ 500, 000

₱ 125, 000 + 30% (₱ 436, 800 – ₱ 250, 000) = ₱ 186, 800

C.

Less: Personal deduction ₱ 50, 000

Less: Additional deduction 75, 000
Taxable income from business or profession 511, 000
Total taxable income ₱ 386, 800

From tax table, tax due for ₱ 386, 800 is computed as follows:
₱ 125,000 + 32% of the excess over ₱ 500, 000

₱ 125, 000 + 30% (₱ 386, 800 – ₱ 250, 000) = ₱ 136, 800

PROBLEM #3

Sales ₱ 1, 765, 000

Expenses 1,115, 000
Taxable income from business or profession ₱ 650, 000

A.

Taxable income from business or profession ₱ 650, 000

Personal Deduction 50, 000
Total taxable income ₱ 600, 000

From tax table, tax due for ₱ 600, 000 is computed as follows:
₱ 125,000 + 32% of the excess over ₱ 500, 000

₱ 125, 000 + 30% (₱ 600, 000 – ₱ 250, 000) = ₱ 350, 000

B.

Taxable income from business or profession ₱ 650, 000

Personal Deduction 50, 000
Additional Deduction 75, 000
Total taxable income ₱ 525, 000

From tax table, tax due for ₱ 525, 000 is computed as follows:
₱ 125,000 + 32% of the excess over ₱ 500, 000

₱ 125, 000 + 30% (₱ 525, 000 – ₱ 250, 000) = ₱ 275, 000