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    Bsba2b INCOMETAXCOMP3 - 2 CABALLES, JERICAL

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    Jerica Caballes
    The document provides steps for computing income tax liability using personal exemptions under the old Philippine tax table. It then provides two examples of computing taxable income and tax due for individuals, Ms. Eba Khana and Miss Nah Khana, based on their income and expenses. For Ms. Eba Khana, the tax due is determined to be P60,500. For Miss Nah Khana, the tax due is P33,250. The document also provides income and expense information for Miss Kanyah and requests her tax due be computed.

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    Bsba2b INCOMETAXCOMP3 - 2 CABALLES, JERICAL

    Uploaded by

    Jerica Caballes
    8 views30 pages
    The document provides steps for computing income tax liability using personal exemptions under the old Philippine tax table. It then provides two examples of computing taxable income and tax due for individuals, Ms. Eba Khana and Miss Nah Khana, based on their income and expenses. For Ms. Eba Khana, the tax due is determined to be P60,500. For Miss Nah Khana, the tax due is P33,250. The document also provides income and expense information for Miss Kanyah and requests her tax due be computed.

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    bsba2B INCOMETAXCOMP3_2 CABALLES,JERICAL..pptx

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    The document provides steps for computing income tax liability using personal exemptions under the old Philippine tax table. It then provides two examples of computing taxable income and tax due for individuals, Ms. Eba Khana and Miss Nah Khana, based on their income and expenses. For Ms. Eba Khana, the tax due is determined to be P60,500. For Miss Nah Khana, the tax due is P33,250. The document also provides income and expense information for Miss Kanyah and requests her tax due be computed.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    8 views30 pages

    Bsba2b INCOMETAXCOMP3 - 2 CABALLES, JERICAL

    Uploaded by

    Jerica Caballes
    The document provides steps for computing income tax liability using personal exemptions under the old Philippine tax table. It then provides two examples of computing taxable income and tax due for individuals, Ms. Eba Khana and Miss Nah Khana, based on their income and expenses. For Ms. Eba Khana, the tax due is determined to be P60,500. For Miss Nah Khana, the tax due is P33,250. The document also provides income and expense information for Miss Kanyah and requests her tax due be computed.

    Copyright:

    © All Rights Reserved
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    of 30

    INCOME TAXATION COMPUTATION

    FOR RELAXATION TIME 

    PREPARED BY: SIR EDGE


     COMPUTATION OF INCOME TAX WITH PERSONAL
    EXEMPTION FOR OLD TAX TABLE
     1. IDENTIFY TAXABLE INCOME
     2. DEDUCT OPERATING EXPENSES TO GET THE NET INCOME
     3. IDENTIFY PERSONAL EXEMPTION
     SINGLE P20000
     HEAD OF THE FAMILY P25000
     MARRIED P32000
     CHILDREN P8000 EACH NOT EXCEED TO FOUR
     4. DEDUCT PERSONAL EXEMPTION FROM NET INCOME TO GET
    TAXABLE INCOME
     5. LOOK FOR THE GRADUATED RATES AT TAXABLE INCOME
     6. DEDUCT TAX CREDIT THEN YOU’LL GET THE TAX STILL DUE
    OLD TABLE TAXATION
    Not over 10,000 5%
    Over 10,000 but not over 30,000 500 + 10% of the excess over
    10,000
    Over 30,000 but not over 70,000 2,500 + 15% of the excess over
    30,000
    Over 70,000 but not over 140,000 8,500 + 20% of the excess over
    70,000
    Over 140,000 but not over 250,000 22,500 + 25% of the excess over
    140,000
    Over 250,000 but not over 500,000 50,000 + 30% of the excess over
    250,000
    Over 500,000 125,000 + 34% of the excess
    over 500,000
     
     Ms. Eba Khana, single but both parents dependent upon her support. She
    is connected in a service business in the Philippines. For taxable year
    2017, She reported the ff. income, cost and expenses annually;

    Income from services rendered 400,000


    Operating Expenses;
    Salaries and Benefits 50,000
    Shop Rental 10,000
    Supplies 5,000
    Utilities 15,000 Quarter tax payments
    3,000

    Required;
    Compute for taxable income and taxable due.
     Gross Income 400,000
     Gross Income 400,000
    Less: Operating expense;
    Salaries and Benefits 50,000
     Gross Income 400,000
    Less: Operating expense;
    Salaries and Benefits 50,000
    Shop Rentals 10,000
     Gross Income 400,000
    Less: Operating expense;
    Salaries and Benefits 50,000
    Shop Rentals 10,000
    Supplies 5,000
     Gross Income 400,000
    Less: Operating expense;
    Salaries and Benefits 50,000
    Shop Rentals 10,000
    Supplies 5,000
    Utilities 15,000 80,000
     Gross Income 400,000
    Less: Operating expense;
    Salaries and Benefits 50,000
    Shop Rentals 10,000
    Supplies 5,000
    Utilities 15,000 80,000 NET INCOME
    320,000
     Gross Income 400,000
    Less: Operating expense;
    Salaries and Benefits 50,000
    Shop Rentals 10,000
    Supplies 5,000
    Utilities 15,000 80,000 NET INCOME
    320,000
    Less: Exemptions
    Head of the Family 25,000
     Gross Income 400,000
    Less: Operating expense;
    Salaries and Benefits 50,000
    Shop Rentals 10,000
    Supplies 5,000
    Utilities 15,000 80,000 NET INCOME
    320,000
    Less: Exemptions
    Head of the Family 25,000
    TAXABLE INCOME 295,000
    Taxable Income up to 250,000

    30% x 45,000 (295,000–250,000)= 13,500


    50,000
    63,500
    Taxable Income up to 250,000

    30% x 45,000 (295,000–250,000)= 13,500


    50,000
    63,500
    Less: Quarterly Tax Payments 3,000
    Taxable Income up to 250,000

    30% x 45,000 (295,000–250,000)= 13,500


    50,000
    63,500
    Less: Quarterly Tax Payments 3,000

    TAXABLE INCOME TAX DUE P 60,500


    Miss Nah Khana, a single, cousin of Eba Khana whose both parents are also
    dependent upon her support. She is connected in a service business in the
    Philippines. For taxable year 2020, She report the ff. income, cost and expenses
    annually;

    Income from services rendered 300,000


    Operating Expenses;
    Salaries and Benefits 50,000
    Shop Rental 10,000
    Supplies 5,000
    Utilities 15,000
    Quarter tax payments 3,000

    Required;
    Compute for taxable income and taxable due.
     Gross Income 300,000
     Gross Income 300,000
    Less: Operating expense;
    Salaries and Benefits 50,000
     Gross Income 300,000
    Less: Operating expense;
    Salaries and Benefits 50,000
    Shop Rentals 10,000
     Gross Income 300,000
    Less: Operating expense;
    Salaries and Benefits 50,000
    Shop Rentals 10,000
    Supplies 5,000
     Gross Income 300,000
    Less: Operating expense;
    Salaries and Benefits 50,000
    Shop Rentals 10,000
    Supplies 5,000
    Utilities 15,000 80,000
     Gross Income 300,000
    Less: Operating expense;
    Salaries and Benefits 50,000
    Shop Rentals 10,000
    Supplies 5,000
    Utilities 15,000 80,000 NET INCOME
    220,000
     Gross Income 300,000
    Less: Operating expense;
    Salaries and Benefits 50,000
    Shop Rentals 10,000
    Supplies 5,000
    Utilities 15,000 80,000 NET INCOME
    220,000
    Less: Exemptions
    Head of the Family 25,000
     Gross Income 300,000
    Less: Operating expense;
    Salaries and Benefits 50,000
    Shop Rentals 10,000
    Supplies 5,000
    Utilities 15,000 80,000 NET INCOME
    220,000
    Less: Exemptions
    Head of the Family 25,000
    TAXABLE INCOME 195,000
    Taxable Income up to 140,000

    25% x 55,000 (195,000–140,000)= 13,750


    22,500
    36,250
    Taxable Income up to 140,000

    30% x 45,000 (295,000–250,000)= 13,750


    22,500
    36,250
    Less: Quarterly Tax Payments 3,000
    Taxable Income up to 140,000

    25% x 55,000 (195,000–250,000)= 13,750


    22,500
    36,250
    Less: Quarterly Tax Payments 3,000

    TAXABLE INCOME TAX DUE P 33,250


     COMPUTATION OF INCOME TAX WITH PERSONAL
    EXEMPTION FOR OLD TAX TABLE
     1. IDENTIFY TAXABLE INCOME
     2. DEDUCT OPERATING EXPENSES TO GET THE NET INCOME
     3. IDENTIFY PERSONAL EXEMPTION
     SINGLE P20000
     HEAD OF THE FAMILY P25000
     MARRIED P32000
     CHILDREN P8000 EACH NOT EXCEED TO FOUR
     4. DEDUCT PERSONAL EXEMPTION FROM NET INCOME TO GET
    TAXABLE INCOME
     5. LOOK FOR THE GRADUATED RATES AT TAXABLE INCOME
     6. DEDUCT TAX CREDIT THEN YOU’LL GET THE TAX STILL DUE
    #2 MISS KANYAH A SEPERATED FILIPINO NURSE RESIDING IN THE
    PHILIPPINES WITH TWO DEPENDENT AGED 4 AND 10, HAS THE FF.
    DATA ON HER COMPENSATION INCOME AND EXPENSES
     
    INCOME AS NURSE P50,000MONTHLY
    INCOME AS CAREGIVER IN USA 100,000
    EXPENSES WITHIN THE PHILS 10,000
    EXPENSES WITHIN USA 5,000
     

    COMPUTE FOR INCOME TAX STILL DUE OF MISS KANYAH


    PERSONAL EXEMPTION -P 41000

    TAXABLE INCOME SUBJECT TO TAX TABLE -P559,000

    TAXABLE INCOME DUE -P145,060

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