2-4
10
Taxpayer is a resident citizen
a.
Gross business income, Philippines
Gross business income, USA
500,000
Business Expenses, Philippines
-700,000
Business Expenses, USA
-430,000
Compensation Income, Philippines
-100,000
Dividend Income - Foreign Corp
40,000
Interest Income - bank deposit abroad
30,000
Raffle Draw winnings
10,000
Taxable Income (within and without)
b.
d.
1,050,000
Tax Due [(250,000 x 25%) + 102,500
165,000
Creditable withholding tax on business income
-125,000
Income Tax Payable
c.
1,000,000
40,000
Dividend Income - DC (50,000 x 10%)
5,000
Interest Income - bank deposit Philippines @20%
4,000
Interst Income - FCDS deposit @15%
6,000
Royalty Income from compensation income @10%
2,500
PCSO winnings (200,000 x 20%)
40,000
Final Tax on passive income
57,500
Basic Income tax due
165,000
Final taxes on passive income
Total income tax expense
11
Taxpayer is a nonresident citizen
a
Gross business income, Philippines
57,500
222,500
1,000,000
Business expenses, Philippines
-700,000
Compensation income, Philippines
600,000
Dividend income - foreign corp
40,000
Raffle draw winnings
10,000
Taxable income
b
950,000
Tax due [(150,000 x 25% + 102,500]
140,000
CWT on business income
-125,000
Income Tax Payable
c
15,000
Dividend Income - DC 50k x 10%)
5,000
Interest income bank deposit, Philippines @20%
4,000
Interest income FCDS deposit @15%
exempt
Royalty income from compositions @10%
d.
2,500
PCSO winnings (200,000 x 20%)
40,000
Final tax on passive income
51,500
Basic Income tax Due
140,000
Final taxes on passive income
51,500
Total income tax expense
191,500
12
Taxpayer is a resident alien
a
Taxable Income = 950,000 (same to no. 11A)
b
Income tax payable = 15,000 (same to no. 11B)
c.
Final tax on passive income = 57,500 (same to no. 10C)
d.
Total income tax expense
Basic income tax due
140,000
Final tax on passive income
57,500
Total income tax expense
197,500
13
Taxpayer is a nonresident alien engaged in trade and business
a.
Taxable income - 950,00 (refer to no. 11A)
b
Income tax payable = 15,000 (refer to no. 11B)
c.
Dividend Income - DC (50k x 20%)
10,000
Interest Income bank deposit, Philippines @20%
Interest Income FCDS deposit @15%
4,000
exempt
Royalty income form compensation @10%
14
2,500
PCSO winnings @20%
40,000
Final tax on passive income
56,500
Taxpayer is a non-resident alien not engaged in trade or business
Compensation INcome - Philippines
600,000
Dividend Income - DC
50,000
Dividiend Income from resident foreign corp.
40,000
Interest income - bank deposit Philippines
20,000
Interest Income FCDS deposit
exempt
Royalty income from compensation
25,000
Raffle draw winnings
10,000
PCSO winnings
200,000
Total Gross Income
945,000
x 25 % (rate in excess of first 800k)
Income tax Due
25%
236,250