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    Lecture Notes On Final and Capital Gain Tax - 2

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    banananewbie1

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    Lecture Notes On Final and Capital Gain Tax - 2

    Uploaded by

    banananewbie1
    3 views1 page

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    Lecture notes on Final and Capital gain tax -2

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    3 views1 page

    Lecture Notes On Final and Capital Gain Tax - 2

    Uploaded by

    banananewbie1

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    its earnings or profits and payable to

    5 years
    its shareholders, whether in money
    5 years or more 0% or in other property

    Foreign currency deposit with foreign Types of dividends


    currency depository banks - Cash dividends - paid in cash
    - Property - paid in non cash
    properties including
    taxpayer individuals corporation - Scrip - those paid in notes or
    evidence of indebtedness
    residents 15% 15%
    - Stock - paid in stocks
    Non exempt exempt - Liquidating -distribution of corporate
    residents net assets

    What if the deposit on FC is a joint Rule: Dividends = income subject to tax


    account? (resident and non-resident) Exceptions:

    Resident - FCD 50% x 15% A. Stock dividends - considered as


    Non resident - 50%-Exempt cash dividends subject to tax:
    a. Subsequent cancellation and
    Interest income subject to regular tax: redemption
    - Lending activities b. Substantial alteration in
    - Investment in bonds ownership in the corporation
    - Promissory notes B. Liquidating dividends
    - Foreign sources (whether bank or C. Stock dividends
    non bank) a. Capitalization of earnings
    - Penalty for legal delay or default b. May be taxable under certain
    conditions
    Interest income on tax-free corporate D. Stock split
    covenant bonds: a. Result in reduction in par
    - Interest income on bonds, value
    mortgages, deeds of trust or other
    similar obligations of domestic or Exempt dividends
    resident foreign corporation with tax
    free or tax reduction provision where Inter-corporate:
    the obligor shoulders in whole or in - DC - DC or RFC (exempt)
    part any tax on interest - Dividends from cooperative
    - Subject to 30% FWT (all individuals)
    - Corporation - regular income Dividend income from real estate
    tax investment trust
    Share in the net income of business
    DIVIDENDS partnership
    - Any distribution made by a
    corporation to its shareholders out of

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