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Yellow - Not Sure, Green - Correct

The document provides information on tax rates and classifications for residents and nonresidents. It includes examples of tax calculations for individuals with different sources of income and resident statuses. Multiple choice questions are provided at the end to test understanding of tax law concepts regarding residency, applicable tax rates, and taxability of various types of income.

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Isaiah John Domenic M. Cantanero
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© © All Rights Reserved
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37 views

Yellow - Not Sure, Green - Correct

The document provides information on tax rates and classifications for residents and nonresidents. It includes examples of tax calculations for individuals with different sources of income and resident statuses. Multiple choice questions are provided at the end to test understanding of tax law concepts regarding residency, applicable tax rates, and taxability of various types of income.

Uploaded by

Isaiah John Domenic M. Cantanero
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Yellow - not sure, Green - Correct

A final tax of 10% shall be withheld if a nonresident citizen received his share in the
income of a taxable joint venture

- True
- False

CJ, single had the following data for the taxable year 2019

Gross business income, Philippines, net of CWT P 1,000,000


Gross business income, USA 500,000
Business expenses, Philippines 700,000
Business Expenses, USA 430,000
Compensation Income, Philippines 600,000
Dividend income from a domestic Corp. 50,000
Dividend from a resident foreign corp. 40,000
Interest Income from peso bank deposit 20,000
Interest income from bank deposits abroad 30,000
Interest income from FCDS Deposits 40,000
Royalty income from composition 25,000
Raffle draw prizes 10,000
PCSO winnings 200,000
Creditable withholding tax on business income 125,000

Requirements:
1. Determine the following assuming the taxpayer is a resident citizen.
A. Income tax payable = 77,000
B. total final taxes on passive income = 57,500
C. Total income tax expenses (on all income received) = 548,100

2. Determine the following assuming the taxpayer is a nonresident citizen


A. Income tax payable = 35,000 same same
B. Total final taxes on passive income = 51,500 same same
C. Total Income tax expenses (on all income received) = 252,000 same same

Solution ko hehe -Belle

3. Determine the final tax on passive income assuming taxpayer is


A. Resident alien = 57,500? Samee, samee din, same
B. Nonresident Alien ETRB = 56,500?? Sameee, same din, same

4. Determine the total income taxes of the taxpayer assuming the taxpayer is a
NRA-NETB (ignore business income, business expenses, and creditable withholding
taxes on business income from the Philippines) = 226,250;

John is a self employed and professional accountant. He provided the following


information for 2021 taxable year

Gross Sales P1,550,000


Cost of Sales 565,000
Business Expenses 335,000
Rental Income (NET) 332,500
Philippine charity sweepstakes winnings 450,000
Royalty income - books 210,000
Other royalty income 60,000
Dividend Income from domestic corp 40,000
Interest income, Metrobank - Makati 120,000
Interest income under FCDS 68,000
Total creditable withholding tax 80,000
Quarterly payments 83,600

Requirements:
A. Compute for the income tax payable of John. = 110,000
B. Compute for the total final tax of John. = 161,200
C. Assuming he opted to taxed at 8%, compute for the income tax payable of John.
= (26,600)?
Try lang hehe di me sure - Reine; same answer dinn
Same tayo - Belle di ko lang sure yung sa requirement 3 ko

A foreigner who shall live in the Philippines with no definite intention as to his stay is a
nonresident alien

- True
- False

An alien individual, whether a resident or not of the Philippines, is taxable only on the
income derived from sources within the Philippines.
- True
- False

Pedro is employed in an auditing firm and derives income from his small business. He
provided the following information for 2021 taxable year:

Gross compensation income P450,000


Gross sales 1,890,000
Cost of Sales 735,000
Business Expenses 428,000
Rental Income (net) 213,750
Philippine charity sweepstakes winnings 250,000
Prize from Globe Telecom 9,500
Royalty income - mining, net 35,000
Share in the net income of joint venture, net 59,238
Dividend income from domestic corporation 12,000
Annual interest income from long-term deposit, 9,000
Pre-terminated in 3rd year
Creditable withholding tax on business income 73,000
Quarterly payments 68,200

Requirements:

A. Compute for the income tax payable of Pedro = 172,250


B. Compute for the total finax tax of Pedro = 67,612
C. Assuming he opted to taxed at 8%, compute for the income tax payable of Pedro.
= 70,500
- tal
Generally, a nonresident alien not engaged in trade or business is subject to 25%
creditable withholding tax on his gross income in the Philippines.

- True
- False

The amount of overtime pay, holiday pay, nightshift differential pay, and hazard pay shall
be subject to basic income tax provide that an employee receives basic pay more than
the statutory minimum wage.

- True
- False

Nonresident alien who shall come to the Philippines and stay herein for an aggregate
period of more than 180 days during any calendar year is subject to the rule on
reciprocity under the Tax Code with respect to their allowed personal exemption.

- True
- False

All proceeds from the sale of real property classified as capital asset shall be subject to
capital gains tax of 6% considering the tax base which is higher amount among the fair
market value, zonal value, assess value or gross selling price.

- True
- False

Some passive income are subject to separate and final tax rates.

- True
- False

A nonresident citizen is taxable only for the income within. Therefore, his interest
income is taxable expanded foreign currency deposit system transacted with an
offshore banking unit is taxable in the Philippines.

- True
- False
The intention with regards to the length and nature of stay of an alien determines
whether he is a resident or nonresident

- True
- False
Sale of real property classified as ordinary asset to the government is subject to 6%
capital gains tax or basic income tax, at the option of the taxpayer

- True
- False

The provision of the Tax Code, as amended, which allows 8% income tax rate on gross
sales/receipts and other non-operating income in excess of P250,000 is available only
to purely self-employed and/or professional

- True
- False

An employee simultaneously employed by multiple employers during the year must file
his individual tax return on or before April 15 next year following the end of the taxable
year.

- True
- False
Gain from sale of real property classified as capital asset sold to the government may
be taxed using the basic tax rate at the option of the purchasing government agency

- True
- False

Income earned outside the Philippines by OFWS are tax exempted because they are
considered nonresident citizens

- True
- False

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