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Introduction To Regular Income Tax: BAM 127: Income Taxation For BA Module #12

The document discusses regular income tax in the Philippines. It defines regular income tax as applying to all income except those subject to final tax, capital gains tax, or special tax regimes. It is calculated based on net income after allowable deductions and exemptions. Most regular income is subject to creditable withholding tax. For individuals, the tax is progressive, while for corporations it is a flat 30% tax on taxable income.

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Mylene Santiago
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208 views

Introduction To Regular Income Tax: BAM 127: Income Taxation For BA Module #12

The document discusses regular income tax in the Philippines. It defines regular income tax as applying to all income except those subject to final tax, capital gains tax, or special tax regimes. It is calculated based on net income after allowable deductions and exemptions. Most regular income is subject to creditable withholding tax. For individuals, the tax is progressive, while for corporations it is a flat 30% tax on taxable income.

Uploaded by

Mylene Santiago
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Introduction to

Regular Income
Tax
BAM 127: Income Taxation for BA
Module #12
REGULAR INCOME TAX

1. General
2. Net Income Tax
3. Annual Tax
4. Creditable Withholding Tax
5. Progressive or Proportional
REGULAR INCOME TAX

• General
The regular income tax applies to
all items of income except those
that are subject to final tax.
Capital gains tax, and special tax
regimes.
REGULAR INCOME TAX

• Net Income Taxation


The regular tax is an imposition
on residual profits or gains after
deductions for expenses and
personal exemptions allowable
by law.
REGULAR INCOME TAX

• Net Income Taxation


The regular tax is an imposition
on residual profits or gains after
deductions for expenses and
personal exemptions allowable
by law.
REGULAR INCOME TAX

• Creditable Withholding Tax


Most items of regular income are subject
to creditable withholding tax (CWT).
• Progressive or Proportional Tax
The NIRC imposes a progressive tax on the
taxable income of individuals while it
imposes a flat or proportional tax of 30%
upon the taxable income of corporations
REGULAR INCOME TAX
REGULAR INCOME TAX

• REGULAR INCOME TAX MODEL


Gross Income xx
Less: Allowable Deductions xx
Taxable Income xx
scope and classifications
of Gross Income
• Classification of Gross Income
1. Compensation Income – Employee-
Employer relationship
2. Business or Professional Income –
Selling of goods or services
3. Other Taxable Income – Neither
Compensation nor Business or
Professional Income.
scope and classifications
of Gross Income

• Note: Substituted Filing may only be availed by


Pure compensation Income earners. The latter
may relieve from the obligation to file an annual
ITR. Provided further that the latter has: (1) no
other taxable Income; (2) no other employer;
and (3) Income Tax Withheld was correct.
scope and classifications
of Gross Income

• Note: The 8% Income Tax shall be in lieu of (1)


Progressive Tax; and (2) 3% Progressive Tax.

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