7/28/2019 part 8.pptx

1/9

MARY JOY P. JUNIO, CPA

Notre Dame of Midsayap College

Midsayap, Cotabato

7/28/2019 part 8.pptx

2/9

means the pertinent itemsof gross income, less thedeductions and/or basic

personal and additionalexemptions, and specialdeductions, if any,authorized for such types ofincome by the NIRC orother special laws.

7/28/2019 part 8.pptx

3/9

Compensation income xxLess: Personal exemptions xx

Health insurance paid xx xx

Net taxable compensation xxBusiness income xxLess: Business expenses allowed xxNet Business income xx

Add: Capital gains xxPassive income without xx xx

Total taxable income xx

7/28/2019 part 8.pptx

4/9

Is based on his/hernet taxable income.The income tax rate tobe used is the normal

income tax rate asprovided by Section24(A) of the NIRC.

7/28/2019 part 8.pptx

5/9

Mr. Cruz Mrs. CruzCompensation income P300,000 P180,000

Withholding taxes 34,000 24,500

Rent income of P120,000 is derived from thecouples conjugal property. Mr. and Mrs.Cruz have 4 qualified dependent children.

7/28/2019 part 8.pptx

6/9

Mr. Cruz Mrs. CruzCompensation income P300,000 P180,000Less: Personal exemptions

Basic 50,000 50,000Additional 100,000 -Taxable compensation 150,000 130,000Add: Rent Income 60,000 60,000

OSD (40%) (24,000) (24,000)Total taxable income P186,000 P166,000

7/28/2019 part 8.pptx

7/9

Mr. Cruz Mrs. CruzIncome tax on P140,000 P 22,500 P 22,500Income tax on excess (25%)

Mr. Cruz 11,500Mrs. Cruz 6,500Income tax due 34,000 29,000Less: Withholding tax 34,000 24,500

Income tax payable P-0- P 4,500

7/28/2019 part 8.pptx

8/9

Interest, prizes,

royalties, etc.Cash or propertydividends

7/28/2019 part 8.pptx

9/9

Are imposed on

sales or exchangesof properties notused in business.