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Philippine Copyright 2017. Atty. Gerry Sebastian, CPA. All rights reserved. No part of this may be
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reproduced in any form or any means, electronic or mechanical, including photocopying or
xeroxing without written permission from the author. Any copy of this without the express written
consent of the author or his duly authorized representative, either proceeds from an illegitimate
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users, in addition to the penalties provided by law, shall be punished by the law of karma and
they will not pass the examinations they shall take or be unsuccessful and unhappy in life.
2
PAS
JAC
JOS
ATTY. GERRY SEBASTIAN, CPA
INDIVIDUAL
INCOME TAXPAYERS JET
AGS ALL RIGHTS RESERVED 2017
SPECIFIC
INDIVIDUAL INCOME TAXPAYERS
Same
Computation
2 4
Specific Individual Non-resident
NRA-ETB
Income Taxpayers Citizen
1 3 5
RESIDENT CITIZEN
A resident citizen is taxable from what sources?
In order that the sources are distinctly seen, what can we do with the
formula?
Is the tax situs factors demonstrated in the computation?
Is the resident citizen allowed to have exemptions?
What is the taxable income?
What is the income tax?
NON-RESIDENT CITIZEN
Taxpayer had the following INFO for the taxable year:
Gross Revenues
Philippines, P1,250,000; US, P1,750,000.
Cost of Sales at 60%.
Allowable Deductions
Philippines, P220,000; US, P300,000.
If the Taxpayer is a Non-Resident Citizen, Single with a basic
personal exemption of P50,000, compute the taxable income
and the income tax thereon.
Tax Table
Over P140K but not over P250K P22,500 + 25% of the excess over P140K
Over P250K but not over P500K P50,000 + 30% of the excess over P250K
Over P500K P125,000 + 32% of the excess over P500K
NON-RESIDENT CITIZEN
A non-resident citizen is taxable from what sources?
Is the tax situs factors demonstrated in the computation?
Is the non-resident citizen allowed to have exemptions?
What is the taxable income?
What is the income tax?
Is the computation applicable to a Resident Alien?
Is the computation applicable to a NRA-ETB?
NRA-NETB R
What is its
I
composition?
Individuals C
NRA-NETB
Income Tax Return
Within PH Without PH
Net Sales/Revenue
Add: Other Taxable Income from Operations BIS
Less: Cost of Sales Except:
NRA-NETB Taxpayer had the following INFO for the taxable year:
Gross Revenues
Philippines, P1,250,000; US, P1,750,000.
Cost of Sales at 60%.
Allowable Deductions
Philippines, P220,000; US, P300,000.
Passive Income not subject to Capital Gains Tax, P100,000.
Net Capital Gains, P70,000.
If the Taxpayer is a NRA-NETB, Single with a basic personal
exemption of P50,000, compute the taxable income and the
income tax thereon.
Tax Table
Over P140K but not over P250K P22,500 + 25% of the excess over P140K
9
Over P250K but not over P500K P50,000 + 30% of the excess over P250K
Over P500K P125,000 + 32% of the excess over P500K
NRA-NETB
A NRA-NETB is taxable from what sources?
Is the tax situs factors demonstrated in the computation?
Is the NRA-NETB allowed to have exemptions?
What did you do with the Passive Income of P100,000?
What did you do with the Net Capital Gains of P70,000?
What is the taxable income?
What is the income tax?
NRA-NETB
NRC
RC Determine the amounts
Income Tax Return
based on the factors
Source of Income
Gross Sales or Revenues xxx
xxx
Within Without Other Taxable Income from Operations xxx
xxx
Less: Cost of Sales xxx
Net Sales or Revenues xxx
Add: Net Capital Gains and
Other Non-Operating Income xxx
Gross Income xxx
xxx
Multiplied by NRA-NETB
Less: Allowable Rate
Deductions x xxx
25%
Taxable Taxable Not Taxable xxx
Less: Exemptions
Income Tax Due xxx
Taxable Income xxx
Income Tax Due xxx
Less: Withholding Taxes xxx
Income Tax Payable xxx
TAXATION
ATTY. GERRY SEBASTIAN, CPA