POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
COLLEGE OF ACCOUNTANCY AND FINANCE
DEPARTMENT OF ACCOUNTANCY
COURSE TITLE
COURSE CODE
INCOME TAXATION
CREDIT UNITS
COURSE PREREQUISITE
3 UNITS
COURSE DESCRIPTION
This subject covers the knowledge of the concepts, principles, laws, rules and procedures associated with income taxation for individuals, partnerships and corporations. Understanding of the new tax
laws, rules and provisions of the TRAIN ACT (Tax Reform for Acceleration and Inclusion) per RA No. 10963, known as the NIRC of 2017, effective in the year 2018 and thereafter. This syllabus focuses
on key tax topics, along with readings of cases studies, and primary source materials (Income Tax Textbook and Income Tax Practice Set) and providing time for departmental mid-term assessment
/exam and departmental final assessment /exam.
1.
2.
3.
4.
5.
6.
7.
8.
9.
ACCO 20133
ACCO 20043: Financial Accounting and Reporting Part 2
Students must be able to do the theoretical and practical applications of said concepts, principles, laws, rules and the procedures related to income taxation. This subject, likewise, is primarily concerned
with the: general principle of taxation, tax remedies of the government and of the taxpayers. Bureau of Internal Revenue organizations, powers and functions, classifications of and taxation for various
income taxpayers, and their compliance with the BIR rules and regulations on matters and procedures in filing income tax returns and payments of income taxes due.
Institutional Learning Outcomes
Program Outcomes
Course Outcomes
BSA and BSMA graduates must demonstrate the ability to review, interpret, evaluate
Creative and Critical Thinking
Upon completion of the course, the students are expected to know the:
Graduates use their imaginative as well as a rational thinking ability to life financial data and systems in compliance with established policies, procedures,
a. Income taxation provisions of the New NIRC of 2017 also known
situations in order push boundaries, realize possibilities, and deepen their guidelines, agreements and/or legislation. They must be able to link data, knowledge and
as the TRAIN ACT per RA 10963, effective in year 2018 and
insight together with different sources and disciplines to make informed decisions.
interdisciplinary and general understanding of the world.
thereafter.
Effective Communication
BSA and BSMA graduates should possess active listening skills and the ability to
b.
Pertinent /relevant BIR revenue regulations, circulars, rulings,
Graduates are proficient in the four macro skills in communication (reading, effectively communicate one’s point of view, both orally and in writing, at all
and tax advisory on income taxation in year 2018 onwards
writing, listening, and speaking) and are able to use these skills in solving organizational levels; be able to explain verbally and/or writing financial, statistical,
c. Pertinent income taxation principles in the decisions of the Court
problems, making decisions, and articulating thoughts when engaging with administrative matters/policies/procedures/regulatory matters/audit results at a level
appropriate to the audience and must be able to negotiate effectively.
of Tax Appeal and the Supreme Court.
people in various circumstances.
Strong Service Orientation
d. Preferential income taxation for tax exemptions provisions
BSA and BSMA graduates should develop an ability to work in groups, possess skills to
Graduates exemplify the potentialities of an efficient, well-rounded and
pertaining to business and industries.
participate as member of a team or/and contribute to group effort; be able to teach others
responsible professional deeply committed to service excellence.
new skills; be able to work to the satisfaction of the clients; negotiate and work with
e. Compliance requirements with the various income taxation
Community Engagement
diversity or work well with men and women from diverse backgrounds.
measures, which includes computations of income tax liabilities,
Graduates take an active role in the promotion and fulfillment of various
accomplishing the income tax returns and forms, availment of
advocacies (educational, social and environmental) for the advancement of BSA and BSMA graduates must work with the highest standards of professionalism, to
income tax incentive benefits, submission of income tax
attain
higher
level
of
performance
and
generally
to
meet
the
public
interest,
he
must
community welfare.
conform to the ethical standards of the profession that include: Integrity, objectivity and
regulatory and registration requirements and dealing with the
Adeptness in the Responsible Use of Technology
independence, professional competence and due care, confidentiality, professional
various offices involved in income taxation.
Graduates demonstrate optimized use of digital learning abilities, including
behavior and moral values.
technical and numerical skills.
f. Effective communication matters and procedures pertaining to
Passion to Lifelong Learning
BSA and BSMA graduates should possess general knowledge in gaining and
income taxation work to be handled.
Graduates are enabled to perform and function in the society by taking understanding of the different cultures in the world and developing an international
g. Knowledge and competencies of an entry-level accountant who
responsibility in their quest to know more about the world through lifelong objective thus, he must possess competency in English language, adaptability to foreign
can address the fundamental requirements of the various parties
business practices, level of trainability and good capabilities in dealing with foreign
learning.
that he will be personally and professionally inter-acting in the
partners.
High Level of Leadership and Organizational Skills
future.
Graduates are developed to become the best professionals in their respective
BSA and BSMA graduates should not only be conversant with IT concepts for business
disciplines by manifesting the appropriate skills and leaderships qualities.
systems but sound knowledge on internal control in computer-based systems,
Sense of Personal and Professional Ethics
development standards and practices for business systems, management of the adoption,
Graduates show desirable attitudes and behavior either in their personal and implementation and use of IT, evaluation of computer business systems, and managing
the security information.
professional circumstances.
Sense of National and Global Responsiveness
Graduates’ deep sense of national compliments the need to live in a global
village where one’s culture and other people culture are respected.
Course Plan
Week
Topic
1
Orientation Day
1.Introduction of the Subject, major
topics, sub-topics, and relevant matters
2. Class Objectives
3. Obligations and Tasks of tax teacher
and students
BSA and BSMA graduates should possess broad base of knowledge concerning macroenvironmental, economic and industry issues, business process structures, functions and
practices. It includes knowledge in areas such as economics, quantitative models and
business statistics, organizational behavior, international business, ethics and corporate
governance.
Learning Outcomes
i. Knowledge and compliance with the rules and
regulations of the PUP and the CAF.
2. Discuss and inculcate in students’ minds, their free –
education benefits, objectives, obligations, attendance,
attitude, behavior inside and outside the classroom,
and other issues.
3. Outline the income taxation subject, major and subtopics, other relevant matters in learning-process.
Methodology
• take class attendance
• see certificate of
registration
• give income tax syllabus
• encourage students to
read the student
handbook
Resources
1. PUP CAF course
income tax syllabus
After the students self-reading and self-understanding
these tax topics at home and after the vital related
teacher’s
classroom lectures, discussions and
illustrations, the students should be able to know and
comprehend these tax topics:
1. Inherent powers of government
2. Limitations on the power of taxation, situs /place of
taxation,
3. Principles of Sound Tax system
4. Nature, scope, classifications
essential characteristics of taxes,
4. Enumerations, definitions, features, characteristics of
taxes.
5.Tax evasion, vs tax avoidance, double taxation,
6. Legislation of tax laws,
7. Tax remedies of the government and taxpayers
8. Org. Powers, Functions, of BIR
a. Primary Officials of the BIR
b. Powers, Functions of the BIR
c. Powers, Functions of the BIR Commissioner
---------------------------------------------------------------1. Amendments by the Train Act to individual income
taxation per RA 10963
2.Basic concepts on Individual Income Tax
3. Administrative provisions; Persons required to file
income tax returns,
• take class attendance, and
collect homework,
• teacher class lectures,
discuss, illustrations on
tax topics,
• conduct short exercises,
recitations, questions,
and answers in Chapters
1 and 2
• discuss answers to
questions in chapters
assigned
• assigned for next meet:
• answer theory question
for submission, recitation,
quiz, seatwork in
classroom
Textbook
• Phil. Laws on Income Tax 2019
Train Act by Virgilio & Lilian
Litonjua
Assessment
2. PUP student handbook
3. PUP /CAF Memos
4. Students Do’s and Don’ts
2
Topic /Chapter I.
General Principles of Taxation
BIR Organization, Power, Task
1. Principles of Taxation
2. Tax Remedies
3. BIR Powers, Functions,
4. BIR Commissioner Powers,
Functions
Topic /Chapter 2
General Impositions of
Individual Income Taxation
1.Changes to Individual Income
Taxation by TRAIN ACT per RA 10963
in 2018 onwards
2. Administrative Provisions on
Individual Income Taxation
3. Fundamental Concepts
on Individual Income Taxation
4. Practical Provisions
on Individual Income Taxation
References
• NIRC of 2017, Train Act, Per
RA 10963
• Income tax books by other
author
• BIR Revenue Regulations,
• Rulings, Circulars, Tax
Advisory,
Practice Set on Phil. Income Tax
2019, TRAIN Act. by Virgilio
and Lilian Litonjua
,
•
•
•
•
•
Quiz
Seat works
Recitations
Homeworks
Accomplishment of practice
set
3
Topic /Chapter 3
Taxable Income for Individuals
1. Income Tax Laws /Rules
For Ordinary Individuals
2. Income Tax Laws /Rules
For Special Individuals
3. Income Tax Laws /Rules
For Other Individual Income
Taxpayers,
4. Income Tax Laws /Rules on Optional
Income Taxation
4
Topic/Chapter 4
Classifications of Tax Items for
Individuals
1. Classifications of Income,
2. Classifications of Expenses
3. Classifications of Income Tax
Topic /Chapter 5
Income Tax Credits
for Individuals
1. income Tax Credits
Quarterly, Annually
2. Income Tax Returns
Variations of Formats /Formulas
Quarterly, Annually
Place and time to file income tax returns and pay income
taxes, other taxpayers’ requirements
4. Fundamental concepts; Basic tax information on
various classifications, enumerations, definitions of
terms / items.
5. Practical provision; interpret, discuss illustrate, use
formulas, tax rates, applications to comply with the
laws /rules and procedures on individual income
taxation
After the students self-reading and self-understanding
these tax topics at home and after the vital related
teacher’s classroom lectures, discussions and
illustrations, the students should be able to know and
comprehend these tax topics:
1. Income tax laws, rules on Ordinary Individuals:
RC, RA, NRC, NRAEBP,
EEI, SEI, SPI, MIE,
2. Income tax laws, rules on Special Individuals:
NRANEBP, SAFE,
3. Income tax laws, rules on Other Individuals;
Minimum Wage Earner, Married Couple, Parent and
Child, Taxable Estate and Trust
4. Optional Income Taxation for NVRP, Self-employed
individual in NIRC Sec.116.
After the students self-reading and self-understanding
these tax topics at home and after the vital related
teacher’s classroom lectures, discussions
and
illustrations, the students should be able to know and
comprehend these tax topics:
1. Classifications of Income:
Income Exempt from Income Tax
Income subject to final tax
Income subject to the basic tax
2. Classifications of Expenses
Not Business Expense
Non-deductible Business Expense
Deductible Business Expense
3. Classifications of Income Taxes
Income tax due before tax credit
Income tax credit
Income tax due /payable after-tax credit
• take class attendance, and
collect homework,
• teacher class lectures,
discuss, illustrations on
tax topics,
• conduct short exercises,
recitations, questions,
and answers in Chapter 3
• discuss answers to
questions in chapters
assigned
• assigned for next meet:
• answer theory question
for submission, recitation,
quiz, seatwork in
classroom
• take class attendance, and
collect homework,
• teacher class lectures,
discuss, illustrations on
tax topics,
• conduct short exercises,
recitations, questions,
and answers in Chapter 4
and 5
• discuss answers to
questions in chapters
assigned
• assigned for next meet:
• answer theory question
for submission, recitation,
quiz, seatwork in
classroom
Textbook
• Phil. Laws on Income Tax 2019
Train Act by Virgilio & Lilian
Litonjua
•
•
•
•
•
Quiz
Seat works
Recitations
Homeworks
Accomplishment of practice
set
•
•
•
•
•
Quiz
Seat works
Recitations
Homeworks
Accomplishment of practice
set
References
• NIRC of 2017, Train Act, Per
RA 10963
• Income tax books by other
author
• BIR Revenue Regulations,
• Rulings, Circulars, Tax
Advisory,
Practice Set on Phil. Income Tax
2019, TRAIN Act. by Virgilio
and Lilian Litonjua
Textbook
• Phil. Laws on Income Tax 2019
Train Act by Virgilio & Lilian
Litonjua
References
• NIRC of 2017, Train Act, Per
RA 10963
• Income tax books by other
author
• BIR Revenue Regulations,
• Rulings, Circulars, Tax
Advisory,
Practice Set on Phil. Income Tax
2019, TRAIN Act. by Virgilio
and Lilian Litonjua
5
Topic/Chapter 6
Fringe Benefits for
Individuals and Corporations
1. Non-Taxable Fringe Benefits
2. Taxable Fringe Benefits
3. De-minimis Fringe Benefits
4. Fringe Benefit Tax
5. Related Deduction for Fringe Benefits
6-7
Topic/Chapter 7
Gross Income for
Individuals and Corporations
1. Exclusions of items from the taxable
Gross Income,
1. Income Tax Credits:
Withholding tax on wages
Withholding tax at source
Excess income tax credit
Income tax in prior quarters,
Income tax in original income tax return filed,
income tax abroad
2. Income Tax Credit for Resident Citizen
3. Income Tax Credit for. RA, NRC, NRAEB,
4. Income Tax Returns
5. Various Formulas for Individuals RC, RA, NRC,
NRAEB, EEI, SEI, SPI, MIE
6. Quarterly, Annual Tax Returns.
After the students self-reading and self-understanding
these tax topics at home and after the vital related
teacher’s classroom lectures, discussions and
illustrations, the students should be able to know and
comprehend these tax topics:
1. Components of Non-Taxable Fringe Benefits
2. Components of De-minimis Benefits
3 Components of Unspecified Taxable fringe benefits
4. Specified Taxable Fringe Benefits:
a. Housing Benefits
b. Expense Account Benefits
c. Vehicle Benefits
d. Household Personnel Expense Benefits
e. Interest on Loan Benefits
f. Membership Fees, dues and other expenses benefits
g. Holiday and Vacation Expenses Benefits
h. Educational Assistance/Benefits to the employee or
his dependents
i. Life, health, non-life insurance premiums benefits
j. Foreign travel benefits
5. Other unspecified fringe benefits,
6. Related deductions for fringe benefits:
if taxable benefits,
if non-taxable benefits
After the students self-reading and self-understanding
these tax topics at home and after the vital related
teacher’s
classroom lectures, discussions and
illustrations, the students should be able to know and
comprehend these tax topics:
A. Exclusions from Gross Income;
1. Income Exempt from income taxes
• take class attendance, and
collect homework,
• teacher class lectures,
discuss, illustrations on
tax topics,
• conduct short exercises,
recitations, questions,
and answers in Chapter 6
• discuss answers to
questions in chapters
assigned
• assigned for next meet:
• answer theory question
for submission, recitation,
quiz, seatwork in
classroom
Textbook
• Phil. Laws on Income Tax 2019
Train Act by Virgilio & Lilian
Litonjua
• take class attendance, and
collect homework,
• teacher class lectures,
discuss, illustrations on
tax topics,
Textbook
• Phil. Laws on Income Tax 2019
Train Act by Virgilio & Lilian
Litonjua
•
•
•
•
•
Quiz
Seat works
Recitations
Homeworks
Accomplishment of practice
set
•
•
•
•
•
Quiz
Seat works
Recitations
Homeworks
Accomplishment of practice
set
References
• NIRC of 2017, Train Act, Per
RA 10963
• Income tax books by other
author
• BIR Revenue Regulations,
• Rulings, Circulars, Tax
Advisory,
Practice Set on Phil. Income Tax
2019, TRAIN Act. by Virgilio
and Lilian Litonjua
References
8-9
2. Inclusions of items in the taxable
Gross Income
2. Income Subject to Final Income Taxes
3. Not Income Items
3.Taxable Gross Income subject to
regular income tax rates
B. Inclusions in Gross Income; Income at Basic Income
Tax;
1. Compensation for Services
2. Gross Profit from Trade, Business, Practice of
Profession
3. Gains from Dealings in Assets
4. Interests Income
5. Rental income
6. Royalty Income
7. Dividend income
8. Annuity income
9. Prize, Winnings
10. Pensions and Retirement Benefits
11. Share in the Net income of Gen. Professional
Partnership
12. Other Income, in general
After the students self-reading and self-understanding
these tax topics at home and after the vital related
teacher’s classroom lectures, discussions and
illustrations, the students should be able to know and
comprehend these tax topics:
A. Exclusions from the Allowed Deductions
1. Not Business Expenses
2. Non-deductible Business Expenses
3. Not Expense Items
Topic /Chapter 8
Allowed Deduction for Individuals and
Corporations
1. Exclusions of items from the allowed
deduction
2. Inclusions of items in the allowed
deduction
3. Actual Itemized Deduction
Components, Determinations
4. Conditions for deductibility
of business expenses
5. Optional Standard Deduction,
Determinations
B. Inclusions in the Allowed Deductions:
Actual Itemized Deduction (AID)
1. Interest Expense
2. Taxes Expense
3. Losses Expense
4. Bad Debts Expense
5. Depreciation Expense
6. Amortization Expense
7. Depletion Expense
8. Charitable Contribution
9. Research and Development Cost
10. Pension Trust Contribution
11. Other Business Expenses, in general
Optional Standard Deduction OSD
• conduct short exercises,
recitations, questions,
and answers in Chapter 7
• discuss answers to
questions in chapters
assigned
• assigned for next meet:
• answer theory question
for submission, recitation,
quiz, seatwork in
classroom
• NIRC of 2017, Train Act, Per
RA 10963
• Income tax books by other
author
• BIR Revenue Regulations,
• Rulings, Circulars, Tax
Advisory,
• take class attendance, and
collect homework,
• teacher class lectures,
discuss, illustrations on
tax topics,
• conduct short exercises,
recitations, questions,
and answers in Chapter 8
• discuss answers to
questions in chapters
assigned
• assigned for next meet:
• answer theory question
for submission, recitation,
quiz, seatwork in
classroom
Textbook
• Phil. Laws on Income Tax 2019
Train Act by Virgilio & Lilian
Litonjua
Practice Set on Phil. Income Tax
2019, TRAIN Act. by Virgilio
and Lilian Litonjua
References
• NIRC of 2017, Train Act, Per
RA 10963
• Income tax books by other
author
• BIR Revenue Regulations,
• Rulings, Circulars, Tax
Advisory,
Practice Set on Phil. Income Tax
2019, TRAIN Act. by Virgilio
and Lilian Litonjua
•
•
•
•
•
Quiz
Seat works
Recitations
Homeworks
Accomplishment of practice
set
Who can claim OSD,
Determination, Formulas
10 -11
Topic /Chapter 9
General Imposition of
Corporate Income Taxation
1. Amendments to Corporate Income
Taxation by the TRAIN ACT, RA 10963
2. Administrative Provisions on
Corporate Income Taxation
3. Fundamental Concepts
on Corporate Income Taxation
4. Practical Provisions
on Corporate Income Taxation
Topic /Chapter 10
Taxable Income of Corporations
5. Income Tax Laws /Rules on Ordinary
Corporations
6. Income Tax Laws /Rules on Special
Corporations
7. Income Tax Laws /Rules on Other
corporations
8. Various Corporate Income Taxes
MIDTERM DEPARTMENTAL EXAMINATION
After the students self-reading and self-understanding
• take class attendance, and
these tax topics at home and after the vital related
collect homework,
teacher’s classroom lectures, discussions and
• teacher class lectures,
illustrations, the students should be able to know and
discuss, illustrations on
comprehend these tax topics:
tax topics,
1. Amendments by the Train Act to corporate income
• conduct short exercises,
taxation
recitations, questions,
2. Administrative Provisions; Persons Required to File
and answers in Chapter 9
Tax Returns, Place and time to File Income Tax Returns
• discuss answers to
and Pay Income Taxes, other requirements on taxpayer
questions in chapters
3. Fundamental Concepts; Tax information on various
assigned
definitions, classification, enumerations of items.
• assigned for next meet:
4. Practical Provisions; Interpret, discuss, illustrate, use
answer theory question
formulas, tax rates, applications
for submission, recitation,
in compliance with the laws /rules on corporate income
quiz, seatwork in
taxation
classroom
-----------------------------------------------------------------------1. Income Taxation for Ordinary Corporation; DC, RFC,
NRFC.
2. Income Taxation for Special Corporations:
a. Proprietary Educational Institutions,
b. Non-Profit Hospital,
c. Regional Operating Headquarter of Multi-National
Corporation,
d. Non-Resident Cinematographic Film Owner, Lessor,
e. Resident International Carrier,
f. Non-Resident Owner, Lessor of Vessels,
g. Non-Resident Owner, Lessor of Aircrafts,
machineries, equipment
3. Income Taxation for Other corporations:
a. General Professional Partnership
b. Ordinary Partnership,
c. Taxable Joint Ventures,
d. Non-taxable Joint Ventures
e. Taxable Co-Ownerships
f. Non-taxable Co-Ownerships
4. Various Corporate Income Tax: MCIT, BCIT, OGIT,
BPRT, IAET, FCGT, PFIT, FBT, SPCIT,
Textbook
• Phil. Laws on Income Tax 2019
Train Act by Virgilio & Lilian
Litonjua
References
• NIRC of 2017, Train Act, Per
RA 10963
• Income tax books by other
author
• BIR Revenue Regulations,
• Rulings, Circulars, Tax
Advisory,
Practice Set on Phil. Income Tax
2019, TRAIN Act. by Virgilio and
Lilian Litonjua
•
•
•
•
•
Quiz
Seat works
Recitations
Homeworks
Accomplishment of practice
set
12
Topic /Chapter 11
Classifications of Tax Items
for Corporations
1. Classifications of Income,
2. Classifications of Expenses
3. Classifications of Income Tax
Topic /Chapter 12
Income Tax Credits
for Corporations
1. Components of Tax Credits
Quarterly, Annually
2. Income Tax Returns Formats of
Income Tax Returns Quarterly,
Annually
13
Topic /Chapter 13 (Chapter 6)
Fringe Benefits For
Corporations and Individuals
1. Fringe Benefits
2. Taxable Fringe Benefits
3. Non-Taxable Fringe
Benefits
4. De-minimis Benefits
5. Fringe Benefit Tax
After the students self-reading and self-understanding
these tax topics at home and after the vital related
teacher’s classroom lectures, discussions and
illustrations, the students should be able to know and
comprehend these tax topics:
1.Classifications of Income:
a. Income Exempt from Income Tax
b. Income subject to final income tax
c. Income subject to the basic /regular income tax
2. Classifications of Expenses
a. Not Business Expense
b. Non-deductible Business Expense
c. Deductible Business Expense
3. Classifications of Income Taxes
Income tax due before tax credits,
income taxes creditable
Income tax due /payable after-tax credits
-------------------------------------------------------------------------1. Income tax credits:
Withholding tax at source
Excess income tax credit
Income tax paid in prior quarters,
Income tax in original income tax return filed income
tax abroad
2. Income tax credit for Domestic Corporation
3. Income tax credit
for Resident foreign corporation
4. Income tax returns, various formulas for
Corporations- Quarterly and Annual income tax
returns.
After the students self-reading and self-understanding
these tax topics at home and after the vital related
teacher’s classroom lectures, discussions and
illustrations, the students should be able to know and
comprehend these tax topics:
A. Unspecified Taxable fringe benefits
B. Specified taxable fringe benefits:
1. Housing benefits
2. Expense account benefits
3. Vehicle benefits
4. Household personnel benefits
5. Interest on loan benefits
6. Membership fees, dues and other expenses benefits
7. Holiday and vacation expense benefits
• take class attendance, and
collect homework,
• teacher class lectures,
discuss, illustrations on
tax topics,
• conduct short exercises,
recitations, questions,
and answers in Chapter
11 and 12
• discuss answers to
questions in chapters
assigned
• assigned for next meet:
answer theory question for
submission, recitation,
quiz, seatwork in
classroom
Textbook
• Phil. Laws on Income Tax 2019
Train Act by Virgilio & Lilian
Litonjua
• take class attendance, and
collect homework,
• teacher class lectures,
discuss, illustrations on
tax topics,
• conduct short exercises,
recitations, questions,
and answers in Chapter
13
• discuss answers to
questions in chapters
assigned
• assigned for next meet:
Textbook
• Phil. Laws on Income Tax 2019
Train Act by Virgilio & Lilian
Litonjua
•
•
•
•
•
Quiz
Seat works
Recitations
Homeworks
Accomplishment of practice
set
•
•
•
•
•
Quiz
Seat works
Recitations
Homeworks
Accomplishment of practice
set
References
• NIRC of 2017, Train Act, Per
RA 10963
• Income tax books by other
author
• BIR Revenue Regulations,
• Rulings, Circulars, Tax
Advisory,
Practice Set on Phil. Income
Tax 2019, TRAIN Act. by
Virgilio and Lilian Litonjua
References
• NIRC of 2017, Train Act, Per
RA 10963
• Income tax books by other
author
• BIR Revenue Regulations,
• Rulings, Circulars, Tax
Advisory,
14
Topic /Chapter 14 (Chapter 7)
Gross Income For
Corporations and Individuals
1. Exclusions of items from the Taxable
Gross Income
2. Inclusions of items in the Taxable
Gross Income
3. Income subject to basic /regular
income tax rates
15
Topic /Chapter 15 (Chapter 8)
Allowed Deduction for Corporations
and Individuals
1. Exclusions of items from the allowed
deduction
2. Inclusions of items in the allowed
deduction
3. Actual Itemized Deduction
Components, Determination
4. Optional Standard Deduction,
Determination, formulas
8. Educational assistance benefits to the employee or
his dependents
9. Life, health, non-life insurance premiums benefits
10. Foreign travel benefits
11. Other unspecified fringe benefits, in general
C. De-minimis Benefits Items, its
D. Related deductions for fringe benefits on taxable
fringe benefits on non-taxable fringe benefits
After the students self-reading and self-understanding
these tax topics at home and after the vital related
teacher’s classroom lectures, discussions and
illustrations, the students should be able to know and
comprehend these tax topics:
A. Exclusions from the Gross Income;
1. Income Exempt from income taxes
2. Income Subject to Final Income Taxes
3. Not Income Items
B. Inclusions in Gross Income; Income at Basic Income
Tax
1. Compensation for Services
2. Gross Profit from Trade, Business and Profession
3. Gains from Dealings in Assets
4. Interests Income
5. Rental income
6. Royalty Income
7. Dividend income
8. Annuity income
9. Prize, Winnings
10. Pensions and Retirement Benefits
11. Share in the Net income of General Prof.
Partnership
12. Other Income, in general
After the students self-reading and self-understanding
these tax topics at home and after the vital related
teacher’s classroom lectures, discussions and
illustrations, the students should be able to know and
comprehend these tax topics:
A. Exclusions from the Allowed Deductions
1. Not Business Expenses
2. Non-deductible Business Expenses
3. Not Expense Items
B. Inclusions in the Allowed Deductions:
Actual Itemized Deduction (AID)
answer theory question for
submission, recitation, quiz,
seatwork in classroom
Practice Set on Phil. Income
Tax 2019, TRAIN Act. by
Virgilio and Lilian Litonjua
• take class attendance, and
collect homework,
• teacher class lectures,
discuss, illustrations on
tax topics,
• conduct short exercises,
recitations, questions,
and answers in Chapter
14
• discuss answers to
questions in chapters
assigned
• assigned for next meet:
answer theory question for
submission, recitation,
quiz, seatwork in
classroom
Textbook
• Phil. Laws on Income Tax 2019
Train Act by Virgilio & Lilian
Litonjua
• take class attendance, and
collect homework,
• teacher class lectures,
discuss, illustrations on
tax topics,
• conduct short exercises,
recitations, questions,
and answers in Chapter
14
• discuss answers to
questions in chapters
assigned
Textbook
• Phil. Laws on Income Tax 2019
Train Act by Virgilio & Lilian
Litonjua
•
•
•
•
•
Quiz
Seat works
Recitations
Homeworks
Accomplishment of practice
set
•
•
•
•
•
Quiz
Seat works
Recitations
Homeworks
Accomplishment of practice
set
References
• NIRC of 2017, Train Act, Per
RA 10963
• Income tax books by other
author
• BIR Revenue Regulations,
• Rulings, Circulars, Tax
Advisory,
Practice Set on Phil. Income
Tax 2019, TRAIN Act. by
Virgilio and Lilian Litonjua
References
• NIRC of 2017, Train Act, Per
RA 10963
• Income tax books by other
author
• BIR Revenue Regulations,
16 - 17
Topic: Practice Set on Income Taxation,
Train Act, per RA 10963, in 2019,
by Virgilio and Lilian Litonjua
The Board of Accountancy in its
prescribed CPA Licensure Examination
Syllabus in Taxation, effective in May
2019 onwards, mandates that:
BSA, accountancy students, CPA
candidates, must have working
knowledge to comply with the various
taxation measures. Compliance
includes
computations of taxable income
amounts and tax liabilities,
accomplishing various income tax
returns and BIR tax forms such as 1700,
1701Q, 1701, 1702Q, 1702
18
1. Interest Expense
• assigned for next meet:
2. Taxes Expense
answer theory question for
3. Losses Expense
submission, recitation,
4. Bad Debts Expense
quiz, seatwork in
5. Depreciation Expense
classroom
6. Amortization Expense
7. Depletion Expense
8. Charitable Contributions
9. Research and Development Cost
10. Pension Trust Contribution
11. Other Business Expenses, Optional Standard
Deduction (OSD)
After the students self-reading and self-understanding 1. take class attendance, and
these tax topics in practice set at home and after the vital collect homework,
related teachers classroom lectures, discussions and 2. teacher class lecture,
illustrations, the students should be able to know, to discuss, illustrations on tax
comprehend, to accomplish and to submit the practice topics,
set on income taxation.
3. discuss analyses,
1. Tax teacher conducts a three (3) hours classroom procedures, answers, and
session to guide students in needed analyses and solutions to the case
solutions to given case problems, processing of problems in the practice set.
applicable BIR tax forms and in the realization of the 4. Finalize in ball pen,
goals of this practice set.
accomplish the practice set
2. Students are provided adequate classroom part 1. individual income
experiences / “hands-on activities” in the matters, taxation and part 2.
manners, procedures, and rules in the needed corporation Income taxation,
computations of taxable gross income, allowed submit your practice set next
deductions, taxable net income, income taxes due, meet in the classroom.
income tax credits, income tax payable, filling-up and
filing the various BIR Forms Nos. 1700, 1701Q, 1701
1702Q, 1702, with the BIR, at the prescribed place and
date mandated by law.
3. Students will be able to do the roles and tasks of tax
accountants in giving services to tax clients.
FINAL DEPARTMENTAL EXAMINATION
Suggested Readings and References
•
Phil. Laws on Income Tax 2019 Train Act by: Virgilio & Lilian Litonjua
•
National Internal Revenue Code
•
RA 10963: Tax Reform for Acceleration and Inclusion or TRAIN Law
•
Practice Set on Phil. Income Tax 2019, TRAIN Act. by Virgilio and Lilian Litonjua
• Rulings, Circulars, Tax
Advisory,
Practice Set on Phil. Income Tax
2019, TRAIN Act. by Virgilio
and Lilian Litonjua
Textbook
• Phil. Laws on Income Tax 2019
Train Act by Virgilio & Lilian
Litonjua
References
• NIRC of 2017, Train Act, Per
RA 10963
• Income tax books by other
author
• BIR Revenue Regulations,
• Rulings, Circulars, Tax
Advisory,
Practice Set on Phil. Income Tax
2019, TRAIN Act. by Virgilio
and Lilian Litonjua
• Accomplishment of practice
set
Course Grading System
ONLINE MODE OF LEARNING
Class Standing
Quizzes
50%
Assignments and other activities
20%
Departmental examination
Total
Final Grade = (1st Grading Period + 2nd Grading Period)
2
CORRESPONDENCE MODE OF LEARNING
Result from Online Final Departmental Examination
Result from the activities in the modules
Total
70%
30%
100%
60%
40%
100%
Classroom Policy
The allowed number of absences for students enrolled in ACCO 20133 with once-a-week meeting is four (4). Request for excused absences or waiver of absences must be presented upon reporting back to class. Special
examinations will be allowed only in special cases, such as prolonged illness. It is the responsibility of the student to monitor his/her own tardy incidents and absences that might accumulate leading to a grade of
“FA,” (Failed due to Absences). It is also his/her responsibility to consult with the teacher, chair or dean should his/her case be of special nature.
All BSA and BSMA students are expected to be academically honest. Cheating, lying and other forms of immoral and unethical behavior will not be tolerated. Any student found guilty of cheating in examinations
will (at a minimum) receive a grade of 5.0 in the said test.
Consultation Time
Subject to the availability of the subject teacher, student may approach the subject teacher for queries about his/her grade as well as other academic requirements for the subject.
Prepared by:
(sgd.)
Virgilio G. Litonjua, CPA
Faculty Member
Enhanced by:
(sgd.)
Geno C. San Jose, CPA, MBA
Faculty Member
Recommending Approval:
(sgd.)
Dr. Julieta G. Fonte, CPA
Dean, College of Accountancy and Finance
Approved by:
(sgd.)
Dr. Emanuel C. De Guzman
Vice President for Academic Affairs
Revised March 2021
Reviewed by:
(sgd.)
Lilian M. Litonjua, CPA, MBA
Chairperson