Documente Academic
Documente Profesional
Documente Cultură
250,000 14,500.00 -
250,000 12,500.00 - -
Computation
Total Compensation 135,000
Add: Overtime, NSD, Hazard &
Holiday Pay 140,000
Total Income 275,000
Less: Mandatory contributions 5,000
Non-taxable benefits 11,000 (16,000)
Net taxable income 259,000
Tax Due EXEMPT
Taxpayer is tax exempt as an MWE.
The statutory minimum wage as well as the holiday pay,
overtime pay, night shift differential pay and hazard pay
received by such MWE are specifically exempted from income
tax under law.
A. Life insurance Prizes and Awards
Prizes and Awards in sports
B. Amount received by Competition
Insured as Return of
Premiums 13th month Pay and Other
Benefits
C. Gifts, Bequests, and
Devices H. GSIS, SSS, Medicare and
Other Contributions
D. Compensation for Injuries
or Sickness I. Gains from sale of bonds,
debentures or other
E. Income Exempt under Certificate of
Treaty Indebtedness with a
maturity of >5years
F. Retirement Benefits,
Pensions, Gratuities, etc. J. Gains from Redemption of
Shares in Mutual Fund
G. Miscellaneous Items
Income derived by Foreign
Government
Income derived by the
Government or its Political
Subdivisions
NIRC of 1997, as
Exemptions TRAIN
amended
Qualified Additional
₱25,000 None
Exemption (max. 4)
Exclusion from NIRC of 1997, as
TRAIN
Gross Income amended
13th Month Pay and Total exclusion shall Total exclusion shall
Other Benefits. not exceed P82,000 not exceed ₱90,000
1. Mr. Calisto cannot fully utilize the ₱90,000 ceiling for income tax
computation on compensation since his maximum 13th month and
other benefits is only ₱82,000.
3. He cannot avail the 8% income tax rate due to the nature of his
business, a transport service, which is not qualified under Section 116
of the Tax Code. That is because it is specifically subject to Other
Percentage Tax under Section 117 of the Tax Code, therefore, subject
to graduated income tax and other percentage tax.
TRAIN
Annual Income NIRC of 1997, as
Graduated
with 4 Children amended 8%
(2018-2022) 2023 onwards
250,000 12,500.00 - - -
Income distribution to
beneficiaries of Estates and 15%
Trusts
Commission of independents
and/or exclusive sales
representatives, and marketing
10%
agents of companies
NIRC of 1997, as
Passive Income TRAIN
amended
Philippine Charity
20% Final Tax on winnings
Sweepstakes Office Exempt from 20% Final Tax
exceeding ₱10,000
(PCSO) and Lotto Winnings
How should the net taxable income computed? What are the
circumstances of the taxpayer?
OSD will be computed as follows:
Gross Receipts – Auditing & Assurance ₱4,500,000
Multiply by OSD Rate 40%
OSD ₱1,800,000
Component of Income The income tax return (ITR) shall consist of a maximum of
Tax Return four (4) pages in paper form or electronic form, and shall
only contain the following:
Section 58 (A) The return for final withholding tax The return for final and
shall be filed and the payment within creditable withholding
Return and 25 days from the close of each taxes shall be filed and the
Payment of calendar quarter, while the return for payment made not later
Taxes Withheld creditable withholding taxes shall be than the last day of the
at Source. filed and the payment not later than month following the close
the last day of the month following of the quarter during which
the close of the quarter during which withholding was made.
withholding was made: Provided, That
the Secretary of Finance, may require
these withholding agents to pay or
deposit the taxes deducted or
withheld at more frequent intervals
when necessary to protect the
interest of the government.
“When it is obvious that the goals cannot be reached, don't
adjust the goals, adjust the action steps.” - Confucius
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