Scribd Logo
Upload

Welcome to Scribd!

  • 77 views

    Computation of Income Tax

    Uploaded by

    Pageduesca Rouel
    This document provides an example computation of income tax for Mr. De Castro, a professor with a monthly salary of 85,000 pesos. It calculates his monthly and annual tax under two scenarios: as a single filer and as married with 4 dependents. As a single filer, Mr. De Castro's tax due is 270,792 pesos resulting in an overpayment of 55,608 pesos. As married with 4 dependents, his tax due is 238,792 pesos resulting in an overpayment of 87,608 pesos.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Computation of Income Tax

    Uploaded by

    Pageduesca Rouel
    77 views10 pages
    This document provides an example computation of income tax for Mr. De Castro, a professor with a monthly salary of 85,000 pesos. It calculates his monthly and annual tax under two scenarios: as a single filer and as married with 4 dependents. As a single filer, Mr. De Castro's tax due is 270,792 pesos resulting in an overpayment of 55,608 pesos. As married with 4 dependents, his tax due is 238,792 pesos resulting in an overpayment of 87,608 pesos.

    Original Description:

    free

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document provides an example computation of income tax for Mr. De Castro, a professor with a monthly salary of 85,000 pesos. It calculates his monthly and annual tax under two scenarios: as a single filer and as married with 4 dependents. As a single filer, Mr. De Castro's tax due is 270,792 pesos resulting in an overpayment of 55,608 pesos. As married with 4 dependents, his tax due is 238,792 pesos resulting in an overpayment of 87,608 pesos.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    77 views10 pages

    Computation of Income Tax

    Uploaded by

    Pageduesca Rouel
    This document provides an example computation of income tax for Mr. De Castro, a professor with a monthly salary of 85,000 pesos. It calculates his monthly and annual tax under two scenarios: as a single filer and as married with 4 dependents. As a single filer, Mr. De Castro's tax due is 270,792 pesos resulting in an overpayment of 55,608 pesos. As married with 4 dependents, his tax due is 238,792 pesos resulting in an overpayment of 87,608 pesos.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 10

    COMPUTATION OF

    INCOME TAX
    Computation of Income Tax
    In order to understand the concept described above, let us
    use the hypothetical data:

    Mr. De Castro is gainfully employed as a full-time


    professor at the Far Eastern Academy. His monthly salary is
    P85, 000.00 and said academy deducted 32% of his salary
    for tax. He is married, with five (5) children namely: Jackie,
    25 years old but mentally retarded; Celine, 22years old;
    Andrew, 19 years old; Ely, 18 years old; and Ben, 15 years
    old. Solve the monthly and annual tax of Mr. De Castro.
    Identify if there is an overpayment/tax payable using the
    following allowable deductions:

    SSS= P700.00/Monthly
    Pag-IBIG= P200.00
    PhilHealth= P200.00
    Union Due= P100.00
    Given:
    Total allowance reductions
    : P1, 200.00/month x 12 = P14, 400.00/year

    Gross income
    : P85, 000.00/month x 12 = P1, 020, 000.00/year

    Tax deduction from his employer (32% of his salary)


    : P1, 020, 000.00 x 0.32 = P 326, 400.00
    Given:

    Tax income
    : P85, 000.00(month income) P1,200.00(allowance deductions)
    = P83, 800.00

    Annual tax of Mr. De Castro


    : P83, 800.00 x 0.32 = P26, 816.00(monthly tax) x 12 = P321,
    792.00
    Computation:

    A. Single

    Gross income
    : P1, 020, 000.00 - P14, 400.00(allowance
    deductions) = P1, 005, 600.00

    Gross taxable income


    : P1, 005, 600.00 P50, 000.00 (personal
    exemptions) = P955, 600.00
    Computation:
    Taxable income (Notes: Using the tax
    table, tax table, tax due is P125, 000.00 + 32%
    of the excess of P500, 000.00)
    : P955, 600 P500, 000 = P455, 600 x 0.32 =
    P145, 792 + P125, 000 = 270, 792.00

    Tax due from his employer


    : P326, 400.00

    Tax withheld per BIR 1700


    : P270, 792.00
    Computation:

    Overpayment of Mr. De Castro from


    his employer
    : P55, 608.00(refundable)
    Computation:

    B. Married with 4 Qualified Dependents

    Gross income
    : P1, 020, 000.00 - P14, 400.00(allowance
    deductions) = P1, 005, 600.00

    Gross taxable income


    :P1, 005, 600.00 P150, 000.00 (personal
    exemptions + 4 Qualified dependant) = P855,
    600.00
    Computation:
    Taxable income (Notes: Using the tax table,
    tax table, tax due is P125, 000.00 + 32% of the
    excess of P500, 000.00)
    : P855, 600 P500, 000 = P355, 600 x 0.32 =
    P113, 792 + P125, 000 = 238, 792.00

    Tax due from his employer


    : P326, 400.00

    Tax withheld per BIR 1700


    P238, 792.00
    Computation:

    Overpayment of Mr. De Castro from


    his employer
    : P87, 608.00(refundable)

    You might also like