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    Tax Solution

    Uploaded by

    Nailah Uy Codarat
    Solution to quiz

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    © All Rights Reserved
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    Tax Solution

    Uploaded by

    Nailah Uy Codarat
    18 views5 pages
    Solution to quiz

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    © © All Rights Reserved

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    Solution to quiz

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    18 views5 pages

    Tax Solution

    Uploaded by

    Nailah Uy Codarat
    Solution to quiz

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 5

    Problem 1 RIT FT CGT Ftax CGTax

    Business Income 1,200,000 1,200,000


    Compensation income 720,000 720,000
    Interest income from 5/6 lending to clients 150,000 150,000
    Interest income from bank deposits 16,000 16,000 3,200
    Royalty income 350,000 350,000 70,000
    Capital gain on sale of personal car 50,000 50,000
    Capital gain on the sale of stocks directly to a buyer 100,000 100,000 15,000.00
    Ordinary gain on sale of old office furniture 8,000 8,000
    Dividend income 45,000 45,000 4,500
    2,128,000 411,000 100,000 77,700 15,000

    Problem 2

    Taxable
    Philippines
    Cayman Islands (in Taxable income -
    Php)
    income - resident NRFC - tax Rate used
    domestic foreign corp sparing for NRFC
    Rent income 55,000,000 28,000,000 83,000,000 55,000,000 13,750,000 25%
    Dividend – domestic 145,000 - 21,750 15%
    Royalties 950,000 1,500,000 1,500,000 237,500 25%
    Business expenses 23,870,000 15,100,000 (38,970,000) (23,870,000) 5,967,500 25%
    Taxable
    income 45,530,000 31,130,000
    25% 25%
    Tax due 11,382,500 7,782,500 19,976,750

    Problem 3
    Return of capital
    Cost of insurance 500,000.00
    Paid premiums 250,000.00
    Exclusion 750,000.00

    Return on capital
    Collected 2,500,000.00
    Cost 750,000.00
    Taxable 1,750,000.00

    Problem 4 Exclusions
    th
    Gross compensation income including P25,000 13 month
    P 325,000
    pay 25000
    Less: Tardiness or absences -10,000
    Net compensation income P 315,000
    SSS desuctions 12,000 12,000
    Philhealth deductions 9,000 9,000
    Pag-ibig deductions 10,000 10,000
    Union dues 5,000 5,000
    Withholding tax 40,000
    Net pay P 239,000 61,000

    Problem 5
    Only income after donation is included

    Problem 6
    The paid contribution is the only exclusion since she is
    only 49 years old.

    Problem 7
    Interest income from loans to Japanese people living in the
    920,000
    Philippines for 1 year and 2 months
    Interest income from loans to Filipinos who left the
    1,111,000
    country and lived in Singapore for 184 days already
    Interest income from bank deposits to Bank of the
    232,500
    Philippine Islands – a bank incorporated in the Philippines
    Interest income from bank deposits to ING – a bank
    14,200
    incorporated in Netherlands

    Within Without
    Loan interest income 920,000 1,111,000
    Bank interest income 232,500 14,200
    1,152,500 1,125,200

    Subject to
    Final tax Regular tax
    NRFC 1,152,500 0
    RFC 232,500 920,000
    DC 232,500 2,045,200

    Problem 8

    Rent income, net of 5% CWT 902,500


    Professional fees, net of 10% CWT 990,000
    Interest income in bank – short term deposit, net of final
    48,000
    tax
    Dividends from Maypagasapa Inc., a company
    22,000
    incorporated in the Philippines
    Business expenses 218,000
    Gross income
    Rent 950000
    Prof fees 1100000
    Gross income 2,050,000.00

    Business expense 218,000


    Income tax due 1,832,000
    CWTs
    Rent 47500
    Prof fees 110000
    Income tax STILL due 1,674,500

    Problem 9
    Collected 251450
    Percentage 1.07
    Gross income 235000

    VAT 28200
    CWT 11750
    Recon 251450
    0

    Problem 10

    Real properties classified as Philippines Abroad


    Ordinary assets 9,870,000 11,230,335
    Capital assets 7,853,212 14,235,011

    a. 35,335,346
    b. 17,723,212
    c. 9,870,000

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