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Compensation Lecture Notes 3 4 Compress

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Kristine Nicole T. Salvador
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23 views

Compensation Lecture Notes 3 4 Compress

Uploaded by

Kristine Nicole T. Salvador
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Guanlao, Ma. Elena I.

BSA4A

Post-Test:

1. Pedro is a resident citizen, earning purely compensation income as follows for 2018
taxable year.
a) P200,000
b) P250,000
c) P800,000
d) P2800,000

Answers:

a. Exempt
b. Exempt
c. Income Tax Due = P130,000
d. P746,000

Computation:

Tax Due:

1st P2000,000 P490,000


Excess over P2M [P800,000x32%] 256,000
Total P746,000

2. Juan is a resident citizen, earning purely business income for 2018 taxable year:

Gross Sales P2,800,000

Cost of Sales 1,200,000

Operating expenses 650,000

Rental Income (net of CWT) 380,000

Other creditable withholding taxes 80,000

Answer: P215,000

Computation:

Gross sales P2800,000


Gross rental income [380,000/95%] 400,000
Less: Cost of sales 1200,000
Operating expenses 650,000 1850,000
Taxable net income P1350,000
Less: 800,000

6 0
Excess 550,000
x tax rate (4 Bracket)
th
30%
Excess over 800,000 165,000
BIR’s Graduated tax table – 4 bracket
th
130,000
Income tax due 295,000
Less: Creditable Withholding Tax 80,000
Income Tax Payable P215,000

3. Use the same data in #2 but assume that Juan opted to be taxed using 8%
income tax rate.

Answer: Not Applicable

Computation:

Gross sales: P2800,000


Gross Rental Income [380,000/95%] 400,000
Total P3,200,000

*The tax rate of 8% cannot be applied. The reason behind this is that Juan
aggregated an amount of P3200,000 as his total gross sale; thus, exceeding the VAT
threshold of P3000,000. Consequently, he is subject to VAT.

4. Lorna is a resident citizen, earning compensation and business income for 2018 as
follows:

Compensation income P1,400,000

Gross Sales 2,800,000

Cost of Sales 1,200,000

Operating expenses 650,000

Withholding tax on compensation income 310,000

Other Creditable withholding taxes 80,000

Answer: P212,000

Computation:

Compensation Income P1400,000


Gross sales 2800,000
Less: Cost of Sales 1200,000
Operating Expenses 650,000 1850,000
Taxable net income P2350,000

Tax Due:

6 0
Excess over P2000,000 = [2350K-P2M =350,000x32%] P112,000
BIR’s Graduated tax table 490,000
Income tax due P602,000
Less: Creditable Withholding Tax on:
Compensation income 310,000
Other CWT 80,000 390,000
Income tax payable P212,000

6 0

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