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    Fabm Week 1 Asnd 2

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    John Calvin Gerolao
    The document provides examples to calculate income tax due for different individuals and income sources in the Philippines. It includes examples of computing taxable income by deducting exemptions and statutory payments from gross income, and applying the appropriate tax rates based on an individual's filing status and number of dependents. The examples show how to calculate tax due for employees, self-employed individuals, and business owners.

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    Fabm Week 1 Asnd 2

    Uploaded by

    John Calvin Gerolao
    98 views5 pages
    The document provides examples to calculate income tax due for different individuals and income sources in the Philippines. It includes examples of computing taxable income by deducting exemptions and statutory payments from gross income, and applying the appropriate tax rates based on an individual's filing status and number of dependents. The examples show how to calculate tax due for employees, self-employed individuals, and business owners.

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    FABM WEEK 1 ASND 2

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    The document provides examples to calculate income tax due for different individuals and income sources in the Philippines. It includes examples of computing taxable income by deducting exemptions and statutory payments from gross income, and applying the appropriate tax rates based on an individual's filing status and number of dependents. The examples show how to calculate tax due for employees, self-employed individuals, and business owners.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    98 views5 pages

    Fabm Week 1 Asnd 2

    Uploaded by

    John Calvin Gerolao
    The document provides examples to calculate income tax due for different individuals and income sources in the Philippines. It includes examples of computing taxable income by deducting exemptions and statutory payments from gross income, and applying the appropriate tax rates based on an individual's filing status and number of dependents. The examples show how to calculate tax due for employees, self-employed individuals, and business owners.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    What I Know Direction: Read each sentence carefully and determine whether the statement is True or

    False.

    1. False
    2. True
    3. False
    4. False
    5. False

    What’s More

    Juan Dela Cruz, a married man with two qualified dependents, generated income from the following
    source; Compensation income: a. Annual compensation income generated was P 555,000. b. Statutory
    payments are as follows: SSS – P 6,975.60; Philhealth - P 5,250; Pag-ibig Contribution – P 1,200. Total: P
    13,425.60 b. Tax exempt 13th month pay and other bonuses – P60,000. c. Compute for the tax due

    Gross compensation (salary and other bonuses) P 555, 000

    Less: Statutory contributions (SSS or GSIS, Philhealth and Pag-ibig Fund) P 13,425.60

    Less: Tax exempt 13th month bonus P P60,000

    Gross taxable compensation income P 481, 574.40

    Gross taxable compensation income P481, 574.40


    Less: Personal deduction (25,000 x 2) P50,000
    Less: Additional deduction P50,000
    Net taxable compensation income P381, 574.40

    From tax table, tax due for P381,574.40 is computed as follows: P 50,000 + 30% of the excess over P
    250,000. P 50,000 + 30% (P381,574.40 - P 250,000) = P131, 574.40

    What I have learned. (for discussion/recitation)

    1. What is taxation?
    - Taxation is the process by which the government collects revenue in order to pay for its expenses.

    2. What is income tax?

    - Income tax is defined as the tax on the net income or the entire income realized in one taxable year.

    3. Who are required to pay income tax in the Philippines?

     A citizen of the Philippines, living in the Philippines, is taxable on all income earned inside and outside
    the Philippines;

     A non-resident citizen is taxable only on income earned in the Philippines;

     An OFW is taxable only on income earned in the Philippines.

     A foreigner living in the Philippines is taxable only on income earned in the Philippines.

     A domestic corporation is taxable on all income derived from sources inside and outside the
    Philippines; and

     A foreign corporation is taxable only on the income derived inside the Philippines.

    4. The Philippines individual income tax is progressive. In this context, what does progressive means?

    - In this context, it is stated that the income tax is gradually getting larger and larger and that there are
    many deductions given to each Filipino.

    5. How much personal and additional exemptions are allowed by the Philippine Tax Law?

    - All individual taxpayers are granted a personal exemption of P 50,000. Additional exemptions of ₱
    25,000 are given for each qualified dependent but only up to four dependents.

    Assessment
    1. Jacqueline Cruz generated annual compensation income of ₱ 455,000, net of statutory payments. Tax
    exempt 13th month pay and other bonuses – ₱ 30,000. Determine the tax due of Jacqueline Cruz based
    on the following possible tax status of Jacqueline:

    a. Jacqueline is single with no dependent.

    - Gross compensation (salary and other bonuses) P455, 000

    Less: Tax exempt 13th month and other bonuses P30, 000

    Gross taxable compensation income P425, 000

    Gross taxable compensation income P425, 000


    Less: Personal deduction P50, 000
    Net taxable compensation income P375, 000
    From tax table, tax due for P375, 000 is computed as follows: P 50,000 + 30% of the excess over P
    250,000. P 50,000 + 30% (P375, 000 - P 250,000) = P87, 500

    b. Jacqueline is single with one qualified dependent.

    Gross taxable compensation income P425, 000


    Less: Personal deduction P50, 000
    Additional deduction 25, 000
    Net taxable compensation income P350, 000
    From tax table, tax due for P350, 000 is computed as follows: P 50,000 + 30% of the excess over P
    250,000. P 50,000 + 30% (P350, 000 - P 250,000) = P80, 000

    c. Jacqueline is married with one qualified dependent.

    Gross taxable compensation income P425, 000


    Less: Personal deduction P50, 000
    Additional deduction P25, 000
    Net taxable compensation income P350, 000
    From tax table, tax due for P350, 000 is computed as follows: P 50,000 + 30% of the excess over P
    250,000. P 50,000 + 30% (P350, 000 - P 250,000) = P80, 000

    d. Jacqueline is married with three qualified dependent.

    Gross taxable compensation income P425, 000


    Less: Personal deduction P50, 000
    Additional deduction (3 x 25, 000) P75, 000
    Net taxable compensation income P300, 000
    From tax table, tax due for P325, 000 is computed as follows: P 50,000 + 30% of the excess over P
    250,000. P 50,000 + 30% (P325, 000 - P 250,000) = P72, 500

    e. Jacqueline is married with five dependents.


    Gross taxable compensation income P425, 000
    Less: Personal deduction P50, 000
    Additional deduction (4 x 25, 000) P100, 000
    Net taxable compensation income P275, 000
    From tax table, tax due for P275, 000 is computed as follows: P50,000 + 30% of the excess over P
    250,000. P 50,000 + 30% (P275, 000 - P 250,000) = P57,500

    2. Bob Ong is a project consultant. Total project fees earned during the year amounted to P853,000. Mr.
    Ong opted to use the optional standard deduction of 40%. Determine the tax due based on the following
    possible tax status of Ong: 8

    a. Ong is single with no dependent.

    Gross compensation P853, 000

    Optional standard deduction 40%

    Gross taxable compensation income P511, 800

    Gross taxable compensation income P511, 800


    Less: Personal deduction P50, 000
    Net taxable compensation income P461, 200

    From tax table, tax due for P461,800 is computed as follows: P50,000 + 30% of the excess over P
    250,000. P 50,000 + 30% (P461, 200 - P 250,000) = P113, 360

    b. Ong is married with one qualified dependent.

    Gross taxable compensation income P511, 800


    Less: Personal deduction P50, 000
    Less: Additional deduction P25,000
    Net taxable compensation income P436,800
    From tax table, tax due for P436, 000 is computed as follows: P275,000 + 30% of the excess over P
    250,000. P 50,000 + 30% (P436, 800 - P 250,000) = P106, 040

    c. Ong is married with three qualified dependent.

    Gross taxable compensation income P511, 800


    Less: Personal deduction P50, 000
    Less: Additional deduction ( 25, 000 x 3) P75,000
    Net taxable compensation income P386,800
    From tax table, tax due for P386, 800 is computed as follows: P275,000 + 30% of the excess over P
    250,000. P 50,000 + 30% (P386, 800 - P 250,000) = P41, 090
    3. Juana Dela Cruz owns a trading business. Sales for the year amounted to P 1,765,000. Expenses are
    given in the table below: Determine the tax due of Juana Dela Cruz based on the following possible tax
    status: a. Juana is married with two qualified dependent.

    Starting inventory + purchases − ending inventory = cost of goods sold.

    123, 000 + 655, 000 - 144, 000= P634, 000

    62,000.00 + 52,000.00 + 26,000.00 + 20,000.00 + 15,000.00 + 12,500.00 + 5,500.00= 193 total expenses.

    1,765,000.00 - 634,000.00 - 193,000.00= P938, 000 taxable income

    Gross taxable compensation income P938,000


    Less: Personal deduction P50,000
    Less: Additional deduction ( 25, 000 x 2) P50,000
    Net taxable compensation income P838, 000

    From tax table, tax due for P838,000 is computed as follows: P125,000 + 32% of the excess over P
    250,000. P 125,000 + 32% (P838,000- P500,000) = P233,160

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