1.

A nonresident citizen arrives in the Philippines on July 31, 2018 to reside here
permanently after many years of living abroad. The following data for the year 2018 on
his income are made available:
Gross income, foreign sources (in Philippine pesos)
January 1 to July 31 P500,000
Gross income, Philippine sources, August 1 to December 31 300,000
Gross income, foreign sources, (in Philippine pesos)
August 1 to December 31 400,000

For Philippine income tax purposes, how much is his taxable gross income?

2. Ms. Cora Fiel, an alien employed in PetrolEx Corporation that is a Petroleum Service
Contractor, received compensation income of P5,000,000.00 for 2018. She is married and
has four (4) minor children. How much is the tax due?

3. Ms. Allyza is employed in JBC Corporation. She earns the following for the current year:
Statutory minimum wage, inclusive of the 13th month pay P175,000
Overtime pay 40,000
Night-shift differential 25,000
Commission from the same employer 20,000
Total P260,000

Question 1 – How much is the exempt amount?

Question 2 – How much is the taxable income

4. Ruth Leslie is employed in LAB Corporation and is also a part-time real estate agent for a
real estate broker. In addition to the SMW of P180,000 she received from her employer,
she likewise received P75,000 as commission from her estate dealings for the year 2018.

Question 1 – How much is the income tax due if she is under the graduated income tax
regime?

Question 2 – How much is the income tax due if she is under the 8% income tax regime?

5. For purposes of determining the tax provided in the Tax Code, there shall be allowed a
basic personal exemption of:
6. How much is the basic personal exemption in the case of married individuals where only
one of the spouses is deriving gross income?

7. A married individual deriving income within the Philippines whose spouse is

8. How much shall be allowed an additional exemption for each dependent child not
exceeding four (4)?

9. A married resident citizen has five (5) qualified dependent children. The following
information pertains to his income and expenses in the year 2018:
Salary, net of P20,000 withholding tax P 380,000
Interest income, bank deposit-BPI, Manila 50,000
Yield from money market placement, State
Investment House, Manila 30,000
Rent expenses, apartment house 36,000
Health insurance premium paid 5,000

Question 1 - How much is the taxable compensation income?

Question 2 - How much is the tax due?

10. A single resident citizen has two (2) qualified dependent children. During a particular
year, he earns and spends the following:
Gross income from practice of profession P 250,000
Expenses in connection with the practice of profession 50,000
Hospitalization insurance premium paid 2,000

Question 1 - How much is the taxable net income?

Question 2 - How much is the tax due?

11. A married resident citizen has two (2) qualified dependent children. He has the following
data on income and expenses for the year 2018:
Salary, Philippines, gross of withholding tax of P5,000 P 60,000
Gross business income, Philippines 500,000
Business expenses, Philippines 80,000
Gross business income, USA 900,000
Business expenses, USA 100,000
Interest income from bank deposit, Philippines 50,000
Interest income from bank deposit, USA 70,000

Question 1 - How much is his taxable net income in the Philippines?

12. An alien individual asked you to assist him in the preparation of his tax return for his
income in 2018. He provided you the following information:
Gross business income, Philippines P1,000,000
Gross business income, Japan 5,000,000
Business expenses, Philippines 200,000
Business expenses, Japan 800,000
Philippine Charity Sweepstakes winnings 500,000
Japanese Sweepstakes winnings 400,000
Interest income, Bank of Tokyo, Japan 100,000
Interest income received from a depository bank under
Expanded Foreign Currency Deposit System (EFDS),
Philippines 300,000

The taxpayer was a single resident alien and had three (3) qualified dependent brothers.
Question 1 - How much was the taxable net income in 2018?

Question 2 - Assuming the taxpayer was a married nonresident alien engaged in trade or
business in the Philippines, and had two (2) qualified dependent children. Japan allowed
P70,000 basic personal exemption to married Filipinos not residing there, and P20,000
additional exemption for each dependent child. For Philippine income tax, how much was
the taxable net income?

Question 3 - Assuming the taxpayer was a nonresident alien not engaged in trade or
business, how much was the Philippine income tax?

13. A husband and wife, resident citizens, with one (1) qualified dependent child, had the
following information on their income and expenses for the year 2018:
Salary of the husband, net of P50,000 withholding tax P 450,000
Salary of wife, gross of P60,000 withholding tax 600,000
Professional income, husband, net of 10% withholding tax 900,000
Expenses, practice of profession 300,000
Premium payment for health insurance paid by the wife 5,000
Gross business income, wife 500,000
Business expenses, wife 100,000
Rent income, lease of common property, gross of 5%
withholding tax 700,000
Expenses, leased common property 200,000
Royalties, book published and sold in Singapore 600,000
 Interest income, BPI-Manila 30,000
Prizes, Manila 60,000
Interest income received under Expanded Foreign
Currency Deposit System (EFCDS) 50,000

The husband waived the additional exemption in favor of his wife.

Question 1 - How much was the taxable income of the husband?

Question 2 – How much was the taxable income of the wife?

14. Mr. E, married and has two (2) qualified dependent children, received the following for
the year 2018:
Basic monthly salary P 45,000
Overtime pay for November 5,000
Thirteenth month pay 45,000
Other benefits 64,000

The withholding tax from January to November was P50,000.00.

How much was the tax to be collected (refunded) for the month of December?