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Homework on Introduction to Regular Income Tax

Regular Income Tax Questions and Answers

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111 views

Homework on Introduction to Regular Income Tax

Regular Income Tax Questions and Answers

Uploaded by

NabongJendeukie.gaming
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Homework on Introduction to Regular Income Tax

Name: James Daniel V. Beup

Instruction: Compute the following problems. Provide your solution.

Number 1 to 3 are based on the following information:


Mr. Santos derived the following income in 2024:
Business Income- P200,000
Compensation Income- 300,000
Interest income from 5/6 lending to clients- 100,000
Interest income from bank deposits- 20,000
Royalty income- 100,000
Capital gain on sale of personal car- 20,000
Capital gain on the sale of stocks directly to a buyer 40,000
Ordinary gain on sale of old office furniture- 10,000
Dividend income- 50,000

1. Compute the total passive income subject to final tax.


Interest income from bank deposits P20,000
Royalty income 100,000
Dividend income 50,000
Passive Income Subject to Final Tax P170,000

2. Compute the total income subject to regular tax.


Business Income P200,000
Compensation Income 300,000
Interest income from 5/6 lending to clients 100,000
Capital gain on sale of personal car 20,000
Ordinary gain on sale of old office furniture 10,000
Total Income Subject to Regular Tax P630,000

3. Compute the capital gain subject to capital gains tax.


Capital gain on the sale of stocks directly to a buyer P40,000
Total Capital Gain Subject to Capital Gains Tax P40,000
Number 4 to 8 are based on the following information:
Panay, Inc., a large corporation, had the following income in 2024:
Philippines Abroad
Rent Income P10,000,000 P12,000,000
Dividend – domestic 50,000 -
Royalties 80,000 200,000
Business expenses 8,700,000 9,800,000

4. Compute the taxable income if Panay, Inc. was a domestic corporation.


PHILIPPINES ABROAD TOTAL
Rent Income P 10,000,000 P 12,000,000 P 22,000,000
Royalties 200,000 200,000
Business expenses (8,700,000) (9,800,000) (18,500,000)
Total Taxable Income P 1,300,000 P 2,400,000 P 3,700,000

5. Compute the income tax due in the immediately preceding problem.


Taxable Income P 3,700,000
Tax rate 25%
Income Tax Due P 925,000

6. Compute the taxable income assuming Panay Corporation was a resident foreign
corporation.
WITHIN
Rent Income P10,000,000
Business expenses (8,700,000)
Total Taxable Income P 1,300,000

7. Compute the income tax due in the immediately preceding problem.


Taxable Income P 1,300,000
Tax rate 25%
Income Tax Due P 325,000

8. Compute the total tax if Panay, Inc. was a non-resident foreign corporation.
Assume that the tax sparing is not applicable.
Rent Income P10,000,000
Dividend — Domestic 50,000
Royalties 80,000
Total Taxable Income P 10,130,000
Taxable Income P 10,130,000
Tax rate 25%
Total Income Tax P 2,532,500

9. In 2024, Ms. Maya earned P450,000 compensation income but incurred


P120,000 net loss in her business. What is her taxable income assuming she
incurred personal expenses of P100,000?
- Her taxable income will remain P450,000. Because Ms. Maya's net loss of
P120,000 cannot be deducted from her taxable compensation income.
Furthermore, because no deduction can be claimed against compensation
income, the P100,000 personal expenses are also not deductible.

10. Mrs. Sipalay had a gross taxable compensation income of P400,000. She also
earned an additional P2,000 by investing her money in time deposits plus P3,000
interest income from lending money to a friend. Compute her taxable income.
Gross Taxable Compensation Income P 400,000
Interest Income from Lending Money 3,000
Taxable Income P 403,000

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