Tax on Compensation, Dealings in Properties and Corporation
ANSWER KEY
I.
Polka Cilla is a rank and file employee in an Advertising Firm in Makati. In the year 2020, he
had the following compensation record:
Basic Pay
P500,000.00
Overtime Pay
200,000.00
13th Month & Other Benefits:
13th Month
20,000.00
14th Month
20,000.00
15th Month
20,000.00
Christmas Bonus
10,000.00
Creditable Withholding Tax
156,000.00
De Minimis Benefits:
Christmas and Anniversary Gifts
3,000.00
Laundry Allowance
Employee Achievement Award in kind
Actual Medical Assistance
Rice Subsidy
2,600.00
12,000.00
5,000.00
22,000.00
Medical Cash Allowance To Employee Dependents
2,500.00
Uniform and Clothing Allowance
5,000.00
Productivity Incentive Allowance
Persons Living with and Dependent on the Taxpayer :
3 Illegitimate Children (Aged 22, 23 and 25)
1 Minor Adopted Child
Senior Citizen Father
1 Foster Child
1.
2.
3.
4.
Total Compensation Income
Taxable De Minimis Benefits
Tax (Refundable) for the year
Total De Minimis Benefits exempt by law
18,000.00
Tax on Compensation, Dealings in Properties and Corporation
II.
Rosal Sallero, single, living and working in Metro Manila, provides the following data in 2020:
Salary as a Senior Associate in SGV for the year
Overtime pay
Hazard pay
Holiday pay
Night Shift Differential Pay
13th month pay
Rice Subsidy for 1 year
Christmas bonus
Laundry Allowance
Productive Incentive Pay
Employee Achievement Award (in cash)
Actual Medical Benefits
P120, 000
20, 000
30, 000
10, 000
15, 000
10, 000
26, 000
15, 000
7, 000
15, 000
25, 000
6, 000
Professional income as a CPA outside his employment
Professional expenses
PCSO Lotto Winnings
Distributable Share from General Partnership
Winnings from playing Tong-its
Rental Income from his Condominium unit
350, 000
50, 000
5,000,000
600, 000
50, 000
1,000,000
Business of Ping-Guer licking Good Fastfood chain:
Sales
P2, 000,000
Cost of Sales
1, 150,000
Operating expenses
560, 000
Interest income from BDO
10, 000
Interest Expense
20, 000
Other transactions:
Sale of office equipment held for 5 years:
Selling price
100, 000
Cost
120, 000
Accumulated depreciation
80, 000
Sale of family van-bus held for 3 years:
Selling price
300, 000
Cost
210, 000
Sale of family car held for 18 months:
Selling price
480, 000
Cost
500, 000
Assuming the Minimum Monthly Wage Rate in Metro Manila is
P11,000.00.
How much is the Income Tax Payable of Rosal Sallero, if any?
Tax on Compensation, Dealings in Properties and Corporation
III.
Xander Ford Corp. owns a condominium unit. During the year 2019, the said corporation
furnished and granted the said property for the residential use of Xandarra Park, its Assistant
Vice President. The zonal value of the property per BIR amounts to P10,000,000 while its fair
market value as shown in its current Real Property Declaration amounts to P8,000,000. An
independent appraiser has assessed it at 11,000,000.
Compute the fringe benefit tax, if any.
IV.
In April 1, 2019, Pinaloan, Inc. lends money to Allan Ferrya, its Head Manager, amounting to
P500,000 without interest so long as he will return the money when his means permit him to do
so.
How much is the fringe benefit tax, if any?