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Acc-311 Exercise

The document provides examples of calculating taxable income and tax due for different scenarios involving a taxpayer's gross income, expenses, itemized deductions, and applicable tax rates. It demonstrates how taxable income is determined differently depending on whether the taxpayer is a resident or nonresident and the sources and types of their income. The examples show how to correctly apply tax rates and calculate taxes owed based on the taxpayer's specific circumstances.

Uploaded by

Argem Jay Porio
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© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
252 views

Acc-311 Exercise

The document provides examples of calculating taxable income and tax due for different scenarios involving a taxpayer's gross income, expenses, itemized deductions, and applicable tax rates. It demonstrates how taxable income is determined differently depending on whether the taxpayer is a resident or nonresident and the sources and types of their income. The examples show how to correctly apply tax rates and calculate taxes owed based on the taxpayer's specific circumstances.

Uploaded by

Argem Jay Porio
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Explanation

Gross Income PH 400000 A is resident, therefore


USA 300000
Total 700000
Expenses
PH 200000
USA 150000 350000
Taxble Income 350000

2
Gross Income PH 400000 In no. 2, because A is aN
Expenses
PH 200000
Taxble Income 200000

3
Taxble Income If A is a nonresident alie
Gross Income PH 400000
Explanation

A is resident, therefore all his income within and outside the PH is subject to tax. Expenses within and wi

In no. 2, because A is aNonresident cetizen, only income within shall be subject to tax. Also, only Expense

If A is a nonresident alien not engage in business, only income in the PH shall be taxable. Expenses within
. Expenses within and without is also deductible in computing the taxable income of A.

to tax. Also, only Expenses within shall be deductible.

taxable. Expenses within the PH shall not be deductible in computing the taxable income of NRA-NETB
e income of NRA-NETB
Joey's taxable income 500000

Tax due

500000 Taxable Income

400000 30000
100000 25% 25000
55000
a
a Sales 2,500,000
Less: Cost of sales 1000000
Gross Income 1,500,000
LessL
Itemized deduction 900000
Taxable income 600,000

400000 30000
200000 25% 50000
80000

c.
300,000 20% 60000 This is not added in getting the t

d 2500000 When the taxpayer opt to be taxed at 8% pr

e 2,500,000 x 8% = 200,000
s not added in getting the taxable income because this is a passive income. Passive income are subject to

er opt to be taxed at 8% preferrential tax rate, the taxable income is already the gross sales and/or gross r
ve income are subject to final tax.

gross sales and/or gross receipts.


Gross Business income 1,500,000.00
Gross compensation income 600,000.00
Less: Itemized deductions 500,000.00
Taxable income' 1,600,000.00

Tax due
800000 130,000.00
800000 30% 240,000.00
370,000.00

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