a.

Non-Resident Citizen, within

b.

Non-Resident Alien(NETB), within

c.

Non-Resident Citizen, within

d.

Resident Alien, within

e.

Non-Resident Alien(NETB), within

f.

Non-Resident Alien(ETB), within

2.)
a.) No
b.) No
c.) Yes
d.) Yes
e.) No

3.

a.
b.
c.

Dependency exemption Separated

Parents
John
John and Marsha are both disqualified
Yes

4) Socorro, aged 78, who lives with her unmarried

son, Julio, receives P 38,000, which was used for
her support during the year. The sources of support
were as follows:
Social Security Benefits
P 3,000
Julio
20,000
Rosario, an unrelated friend
4,500
Augusto, son of Socorro
5,000
Corazon, Socorros sister-in-law
5,500
Total
38,000
Can Anyone claim Socorro as dependent for
purposes of additional exemption? NONE

a.

None

b.

None

c.

None

d.

None

e.

Php 100,000

6.)
a.) No
c.)

b.) Yes

Gross Compensation
72,000
Income
Business Income
240,000

Tax on 140000
22,500
Excess:
97000 x 0.25
24,250
---------

---312,000
Less:
Basic Exemption
(50,000)

-----------Income Tax
46,750

d.)
Gross Compensation
72,000
Income
Business Income
240,000

Tax on 250,000
50,000
Excess:
12,000 x 0.3
--------- 3,600

----

-----------Income Tax
53,600

312,000
Less:
Basic Exemption
(50,000)
-----------Taxable Income

7. Computation of taxable income

A.
Jims taxable income
Salary
P 160,000
Less: Deductions
Personal exemption P 50,000 (50,000)
Total Taxable Income
P 110, 000

7. Computation of taxable income

A.
Pats taxable income
Gross business income
P 500,000
Less: Deductions
Expenses business P 275,000
Personal exemption 50,000 (325,000)
Total Taxable Income
P
175,000

7. Computation of taxable income

B.
Jims taxable income
Salary
Less: Deductions
Personal exemption P 50,000
Additional exemption 25,000

P 160,000

(75,000)

(25,000 x 1)

Total Taxable Income

000

P 85,

7. Computation of taxable income

B.
Jims taxable income: 85,000
Tax on P70,000
P 8,500
P 15,000 x 20%
3,000
(85,000-70,000)

Total income tax

P 11,500

7. Computation of taxable income

B.
Pats taxable income
Gross business income
P500,000
Less: Deductions
Expenses business P 275,000
Personal exemption
50,000 (325,000)
Total Taxable Income
P
175,000

7. Computation of taxable income

B.
Pats taxable income: 175,000
Tax on P 140,000
P 22,500
P 35,000 x 25%
8,750
(175,000 - 140,000)

Total income tax

P 31,250

8) TAXABLE INCOME
a) P 40

INCOME TAX PAYABLE

40 * 5% = P 2.00

b) 10,000

10,000 * 5% = P 500

c) 12,245.40

500 + (12,245.40 -10,000) * 10% = P

724.54

d) 250,000

22,500 + (250,000-140,000) * 25% =

P 50,000

e) 456,780

50,000+(456,780-250,000)*30% = P
112,034

f)

125,000 + (1,123,251.27500,000)*32% = P 324,440.41

1,123,251.27

a. Compensation
b. Tax Exempt, more than 5 years (long term)
c. Compensation
d. Tax exempt, not exceeding Php 10,000
e. Tax exempt
f. Business
g. Passive, 10%
h. Passive, 10%
i. Compensation
j. Passive, 12%

10.)
* Juan
Gross Compensation
150,000
Income
-----------150,000
Less:
Basic Exemption
(50,000)
Add. Exemption
(75,000)

------

-----------Taxable Income

Tax on 10,000
500
Excess:
15000 x 0.1
1,500

25,000

------Income Tax
Withholding Tax
(10,100)

2,000

-----------Income Tax Refund

10.)
* Maria
Gross Compensation
125,000
Income
-----------125,000
Less:
Basic Exemption
(50,000)

-----------9,500
Withholding Tax

-----------Taxable Income

Tax on 70000
8,500
Excess:
5,000 x 0.2
1,000

Income Tax Refund

(15,000)
------------(5,500)

75,000
Total Income Tax Refund
(Juan and Maria)

11. Health and/or hospitalization

insurance
a. P 150 x 12 = P 1800
b. Maximum insurance premium payment to
be deducted = P200/month
P 200 x 12 = P 2,400
c. None
Familys gross income is greater than
250,000
d. Maximum insurance premium payment to
be deducted = P200/month

12)
a) ITEMIZED DEDUCTIONS
Gross Receipts- Business
P
200,000
less: Deductions
Expenses
P 65,000
Basic Personal 50,000
Exemption
Addtl. Exemption 50,000 165,000
Taxable Income
P
35,000
Income Tax Payable = 2500+(35,000-30,000)

b) OPTIONAL STANDARD DEDUCTION

Gross Receipts- Business
P
200,000
less: Deductions
Optional
Deduction*
P 80,000
Basic Personal 50,000
Exemption
Addtl. Exemption 50,000 180,000
Taxable Income
P
20,000
*(Optional Deduction = 200,000*40% = 80,000)

c) THE INCOME IS ASSUMED TO BE COMPENSATION

INCOME

Compensation Income
P 200,000
less: Deductions
Basic Personal 50,000
Exemption
Addtl. Exemption 50,000 100,000
Taxable Income
P
100,000
Income Tax Payable = 8500+(100,000-70,000)
*20% = P 14,500

Compensation Income
Sales
Less:
Gross Sales(40%)
(74,400)
Basic Personal Exemption(50,000)
Taxable Income

125,000
186,000
311,000

124,400
186,000

Compensation Income
Sales
Less:
Deductions
(105,000)
Basic Personal Exemption(50,000)
Taxable Income

80,000
230,000
310,000

155,000
155,000