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    Tax Reviewer

    Uploaded by

    romualdoangela30

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Tax Reviewer

    Uploaded by

    romualdoangela30
    3 views2 pages

    Original Title

    TAX-REVIEWER

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    3 views2 pages

    Tax Reviewer

    Uploaded by

    romualdoangela30

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Regular Income Tax

     Gross Income:
    1. Exclusions of gross income – list of
    income exempt from regular income tax
    2. Inclusion of gross income - list of income
    subject to income tax
    3. Special topics – covers income that either
    exclusion/inclusion depends on
    circumstances.
    - Fringe benefits Globalization rule for mixed income earner
    - Dealings in properties  Income of mixed income earner from all
    sources is simply totaled
    Gross income in Regular income taxation  A negative income (net loss) shall not
    o set against taxable compensation
    It consists of all other items in income not taxed income
    under the Final Taxation & Capital Gains Tax & other
    special regime. Normal items of gross are the . Other taxable income from operations

    - Compensation income It includes revenues/receipts from incidental or


    - Business/Professional income secondary operations aside from primary
    - Capital Gains (not subject to capital operations. Examples are the .
    gains tax)
    - Manufacturing company income from
    Allowable deductions – expenses in the conduct of selling scraps
    business/exercise of profession. - Income by a school from its own
    canteen
    Note 1: Personal expenses not connected to conduct - Hospital income from their own
    of business is not included in allowable deduction pharmacy

    Note 2: Individuals that are not engaged in business


    cannot claim deduction from gross income
    Corporate Income Tax
    Regular income taxpayers are classified into:
    - Commonly known as RCIT (Regular
    - Pure compensation income earner Corporate Income Taxation)
    - Pure business/ professional income - Flat tax rate of 25% for domestic &
    earner foreign corporations
    - Mixed income earner - Only 20% for MSMEs w/ assets not
    more than 100 M pesos & not more
    than 5M taxable income
    COMPENSATION INCOME

    These are monetary benefits derived from employer-


    employee relationship

    Elements of Employer-employee relationship

    1. Selection & engagement of employees


    2. Payment of Wages
    3. Power Dismissal
    4. Power of Control

    The are not employees

    1. Consultants
    2. Directors
    3. Talents/artist

    TAXABLE DE MINIMIS BENEFITS

    1. Excess de minimis over regulatory limits

    2. Other benefits from employer not in the


    list of de minimis benefits

    TREATMENT of TAXABLE DE MINIMIS BENEFITS

    a. For rank and file employees – treated as


    Gross Compensation Income generally includes all
    other compensation income under the
    renumerations received under an employer-
    category of 13th month pay and other
    employee relationship.
    benefits
    NON-TAXABLE COMPENSATION
    b. For managerial and supervisory – treated
    Mandatory deductions – These includes employees’ as fringe benefits subject to final fringe
    mandatory contribution to GSIS, SSS, PhilHealth, benefit tax
    HDMF and union dues

    Exempt Benefits

    1. Exempted or excluded by NIRC or special


    laws
    2. Exempted under treaty of international
    agreements
    3. Benefits necessary to trade, business, or
    conduct of profession of the employer
    4. Benefits for the convenience or advantage
    of the employer

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