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    Che Che H. Datingaling OMGT-2102: Answer: Taxable Income Is P700,000

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    cheche datingaling
    This document contains information and calculations regarding income tax for different tax situations in the Philippines in 2018. It provides examples of calculating taxable income and tax due for a taxpayer with income from both the Philippines and USA as a resident citizen, non-resident citizen, resident alien, non-resident alien engaged in trade/business, and non-resident alien not engaged in trade/business. It also contains examples of calculating tax for a resident citizen with various levels of compensation income and for a resident citizen with business income, including calculating the tax under the 8% income tax rate option.

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    Che Che H. Datingaling OMGT-2102: Answer: Taxable Income Is P700,000

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    cheche datingaling
    81 views4 pages
    This document contains information and calculations regarding income tax for different tax situations in the Philippines in 2018. It provides examples of calculating taxable income and tax due for a taxpayer with income from both the Philippines and USA as a resident citizen, non-resident citizen, resident alien, non-resident alien engaged in trade/business, and non-resident alien not engaged in trade/business. It also contains examples of calculating tax for a resident citizen with various levels of compensation income and for a resident citizen with business income, including calculating the tax under the 8% income tax rate option.

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    education

    Original Title

    exercise 1

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    This document contains information and calculations regarding income tax for different tax situations in the Philippines in 2018. It provides examples of calculating taxable income and tax due for a taxpayer with income from both the Philippines and USA as a resident citizen, non-resident citizen, resident alien, non-resident alien engaged in trade/business, and non-resident alien not engaged in trade/business. It also contains examples of calculating tax for a resident citizen with various levels of compensation income and for a resident citizen with business income, including calculating the tax under the 8% income tax rate option.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    81 views4 pages

    Che Che H. Datingaling OMGT-2102: Answer: Taxable Income Is P700,000

    Uploaded by

    cheche datingaling
    This document contains information and calculations regarding income tax for different tax situations in the Philippines in 2018. It provides examples of calculating taxable income and tax due for a taxpayer with income from both the Philippines and USA as a resident citizen, non-resident citizen, resident alien, non-resident alien engaged in trade/business, and non-resident alien not engaged in trade/business. It also contains examples of calculating tax for a resident citizen with various levels of compensation income and for a resident citizen with business income, including calculating the tax under the 8% income tax rate option.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Che che H.

    Datingaling
    OMGT- 2102

    Compute and solve for the following:


     A taxpayer, married, had the following data for taxable year 2018:
    Gross income, Philippines P800,000
    Gross income, USA 600,000
    Expenses, Philippines 400,000
    Expenses, USA 300,000

    Determine the taxable income and tax due if:


    1. Resident citizen
    Answer: Taxable income is P700,000
    Tax due is P205,000

    Gross income, Philippines P800,000


    Gross income, USA 600,000
    Expenses, Philippines (400,000)
    Expenses, USA (300,000)
    Taxable income P700,000

    First 400,000 P130,000


    In excess of 400,000
    (300,000 x 25%) 75,000
    Tax due P205,000

    2. Non-resident citizen
    Answer: Taxable income is P400,000
    Tax due is P30,000

    Gross income, Philippines P800,000


    Expenses, Philippines 400,000
    Taxable income P400,000

    First 250,000 P0
    In excess of 250,000
    (150,000 x 20%) 30,000
    Tax due P30,000

    3. Resident alien
    Answer: Taxable income is P400,000
    Tax due is P30,000
    Gross income, Philippines P800,000
    Expenses, Philippines (400,000)
    Taxable income P400,000

    First 250,000 P0
    In excess of 250,000
    (150,000 x 20%) 30,000
    Tax due P30,000

    4. Non-resident alien engaged in trade and business


    Answer: Taxable income is P400,000
    Tax due is P30,000

    Gross income, Philippines P800,000


    Expenses, Philippines (400,000)
    Taxable income P400,000

    First 250,000 P0
    In excess of 250,000
    (150,000 x 20%) 30,000
    Tax due P30,000

    5. Non-resident alien not engaged in trade and business


    Answer: Taxable income is P800,000; NRA- ETB are taxable on their gross income.
    Tax due is P0; tax exempt.

     Pedro is resident citizen, earning purely compensation income as follows for the taxable
    year 2018:
    Determine the income tax due:
    a. P200,000
    Answer: Income tax due is P0; tax exempt.

    b. P250,000
    Answer: Income tax due is P0; tax exempt.

    c. P800,000
    Answer: Income tax due is P130,000
    First 400,000 P30,000
    In excess of 400,000
    (400,000 x 25%) 100,000
    Tax due P130,000

    d. P2,800,000
    Answer: Income tax due is P746,000

    First 2,000,000 P490,000


    In excess of 2,000,000
    (800,000 x 32%) 256,000
    Tax due P746,000

     Compute for the taxable income and tax due if Juan is a resident citizen earning purely
    business income for 2018 taxable year.
    Gross sales P2,800,000
    Cost of sales 1,200,000
    Operating expenses 650,000
    CWT 80,000

    Answers: Taxable income is P870,000


    Tax due is P151,000

    Gross sales P2,800,000


    Cost of sales (1,200,000)
    Operating expenses (650,000)
    CWT (80,000)
    Taxable income P870,000

    First 800,000 P130,000


    In excess of 800,000
    (70,000 x 30%) 21,000
    Tax due P151,000

     Using the same data above, but assume that Juan opted to be taxed using 8% income tax
    rate. How much is the taxable due?

    Answer: the taxable due is P375,000

    P2,800,000 x 8% = P224,000

    P244,000
    P151,000
    Tax due P375,000

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