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    Taxation Gr.6

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    Michael V. Salubre
    This document discusses the various items that are included in gross income and subject to regular income tax in the Philippines. It lists compensation, business income, gains from property dealings, interest, rents, royalties, dividends, prizes and winnings, and partner's share of GPP income as items included in gross income. It provides further details and examples for some of these items.

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    © All Rights Reserved
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    Taxation Gr.6

    Uploaded by

    Michael V. Salubre
    18 views43 pages
    This document discusses the various items that are included in gross income and subject to regular income tax in the Philippines. It lists compensation, business income, gains from property dealings, interest, rents, royalties, dividends, prizes and winnings, and partner's share of GPP income as items included in gross income. It provides further details and examples for some of these items.

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    This document discusses the various items that are included in gross income and subject to regular income tax in the Philippines. It lists compensation, business income, gains from property dealings, interest, rents, royalties, dividends, prizes and winnings, and partner's share of GPP income as items included in gross income. It provides further details and examples for some of these items.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    18 views43 pages

    Taxation Gr.6

    Uploaded by

    Michael V. Salubre
    This document discusses the various items that are included in gross income and subject to regular income tax in the Philippines. It lists compensation, business income, gains from property dealings, interest, rents, royalties, dividends, prizes and winnings, and partner's share of GPP income as items included in gross income. It provides further details and examples for some of these items.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 43

    REGULAR INCOME

    TAXATION :
    INCLUSIONS IN
    GROSS INCOME
    By : GROUP 6
    ITEMS OF GROSS INCOME
    SUBJECT TO REGULAR TAX
    Includes , but is not limited with the following .
    •Compensation for services in whatever form paid
    • Gross Income from the conduct of trade, business, or exercise
    of a profession
    • Gains derived from dealings in properties
    • Interest
    • Rents
    •Dividends
    •Annuities
    •Prizes and Winnings
    •Pensions
    •Partner's distributive share from the net income of a
    GPP
    Compensation for services for
    in whatever form paid

    • Under current tax rules, the term compensation


    income " technically pertains to the types of
    employee benefits that are subject to regular tax .
    Gross Income from the conduct of trade,
    business or exercise of a profession
    • This includes income from any trade or business
    legal/illegal, and whether registered/unregistered .
    • Gross income from business or profession is
    determined as follows:

    Sales P xxx,xxx
    Less: Cost of Sales P xxx,xxx
    Gross Income P xxx,xxx
    • Below were not included in gross income subject to
    regular income tax.
    1.Business income exempt from income tax.
    • BMBE ( Barangay Micro-Business Enterprise )
    • Income Tax Holidays
    2. Subject to special tax
    • PEZA( Philippine Economic Zone Authority )
    • TIEZA (Tourism Infrastructure and Enterprise Zone
    Authority )
    • Self-Employed / Individuals
    3. Subject to final tax
    • Subscontractors
    • FCDU ( Foreign Currency Deposit Units)
    Gains from dealings with
    properties
    • The gains or losses in dealing in ordinary assets are
    subject to regular income tax. Dealings in capital
    assets other than domestic stocks and real
    properties are also subject to regular income tax.
    Interest Income

    • refers to the interest


    Example :
    income other than
    passive interest • Interest from lendings
    incomes subject to final • Interest from bonds
    tax. A taxable interest • Interest income from
    income must have been
    bank deposit abroad
    actually paid out of an
    agreement to pay
    interest.
    RENT
    Special consideration on rent :
    1. Obligations of the lessor that are

    INCOME assumed by the lessee are additional


    rental income to the lessor.
    2.Advance rental
    arises from leasing a.Item of gross income if
    properties of any i. Restricted
    kind. It is a passive
    ii. Restricted to be applied in the
    income but it is not future years or upon the termination of
    subject to final tax the lease .
    under the NIRC ;
    b. Not an item of gross income if
    hence, it is subject to
    regular income tax. i. it constitutes a loan

    ii. security deposit


    Royalties
    • Royalties earned from the sources within the
    Philippines are generally subject to final income tax
    except when they are active by nature. Active royal
    income and royalties earned from sources outside
    the Philippines are subject to regular income tax.
    Type / Source Within Abroad

    Passive X ✓
    Active ✓ ✓
    DIVIDENDS
    • Dividends declared by foreign corporation
    • Share in the net income of a general
    proffesional partnership (GPP).

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