RELATE TO PRACTICE

1. When is the 8% Optional Income Tax better than the Regular Income Tax? And on the other
hand, when is the latter a better option than the first?
2. What is the differential income that is needed to be earned by a taxpayer in order for the two
options to be indifferent.

Direction: Place your answer in a short bond paper with supporting computations. (either
handwritten or encoded may do), those who are using LMS, must submit the output while
those who are using the ILG (offline), must compile their output in the Learning Portfolio to be
submitted before giving the next module. The output must include your complete name in the
higher left side while the date must be placed higher on the right side.

Income Taxation Module Knowledge Engineer: Mark John D. Gonzales, CPA, CTT, MRITax, MPBM