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    Taxation

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    Hamot Kent
    Jane operates a convenience store and bookkeeping service. Her gross sales were P800,000 and P300,000 respectively. She is subject to 8% income tax on P850,000 of income, amounting to P68,000 in taxes due. Palafox is an independent contractor who earned P4,250,000 in gross receipts for architectural/engineering services. After deducting costs of P3,150,000, their taxable income was P1,100,000. Using the graduated tax table, they owe P220,000 in income taxes. Ben Marino earned USD1,000 in interest from a foreign currency bank deposit, equivalent to P50,000. He

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    Taxation

    Uploaded by

    Hamot Kent
    765 views3 pages
    Jane operates a convenience store and bookkeeping service. Her gross sales were P800,000 and P300,000 respectively. She is subject to 8% income tax on P850,000 of income, amounting to P68,000 in taxes due. Palafox is an independent contractor who earned P4,250,000 in gross receipts for architectural/engineering services. After deducting costs of P3,150,000, their taxable income was P1,100,000. Using the graduated tax table, they owe P220,000 in income taxes. Ben Marino earned USD1,000 in interest from a foreign currency bank deposit, equivalent to P50,000. He

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    Jane operates a convenience store and bookkeeping service. Her gross sales were P800,000 and P300,000 respectively. She is subject to 8% income tax on P850,000 of income, amounting to P68,000 in taxes due. Palafox is an independent contractor who earned P4,250,000 in gross receipts for architectural/engineering services. After deducting costs of P3,150,000, their taxable income was P1,100,000. Using the graduated tax table, they owe P220,000 in income taxes. Ben Marino earned USD1,000 in interest from a foreign currency bank deposit, equivalent to P50,000. He

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    765 views3 pages

    Taxation

    Uploaded by

    Hamot Kent
    Jane operates a convenience store and bookkeeping service. Her gross sales were P800,000 and P300,000 respectively. She is subject to 8% income tax on P850,000 of income, amounting to P68,000 in taxes due. Palafox is an independent contractor who earned P4,250,000 in gross receipts for architectural/engineering services. After deducting costs of P3,150,000, their taxable income was P1,100,000. Using the graduated tax table, they owe P220,000 in income taxes. Ben Marino earned USD1,000 in interest from a foreign currency bank deposit, equivalent to P50,000. He

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Taxation

    1. Jane operates a convenience store while she offers bookkeeping services to


    her clients. In 2020, her gross sales amounted to P800,000, in addition to her
    receipts from bookkeeping services of P300,000. She already signified her
    intention to be taxed at 8% income tax rate in her 1st quarter return.
    a. How much is his tax due in 2020?

    Gross sales – convenience store P800,000


    Gross sales – bookkeeping services 300,000
    Less: Exempt from income tax (250,000)
    Total sales/receipts 850,000
    Tax Rate 8%
    Income Tax Due 68,000

    2. Jane operates a convenience store while she offers bookkeeping services to


    her clients. In 2020, her gross sales amounted to P800,000, in addition to her
    receipts from bookkeeping services of P300,000. She failed to signify her
    intention to be taxed at 8% income tax rate on gross sales in her initial
    Quarterly Income Tax Return, and she incurred cost of sales and operating
    expenses amounting to P600,000 and P200,000, respectively, or a total of
    P800,000.

    Gross sales/receipts from business/profession P1,100,000


    Less: Cost and allowable deductions (800,000)
    Taxable Income 300,000

    Graduated Table

    Tax on the first P250,000 P0


    On the Excess (P300,000 – 250,000)*20% 10,000
    Income Tax Due 10,000
    3. Palafox is a prominent independent contractors who offers architectural and
    engineering services. Since his career flourished, her total gross receipts
    amounted to P4,250,000 for taxable year 2020. His recorded cost of service
    and operating expenses were P2,150,000 and P1,000,000, respectively.
    a. How much is the income tax due in 2020?

    Gross receipts – architectural and engineering services P 4,250,000


    Less: Cost and allowable deductions (3,150,000)
    Taxable Income 1,100,000

    Graduated Table

    Tax on the first P800,000 P130,000


    On the Excess (P1,100,000 – 800,000)*30% 90,000
    Income Tax Due 220,000

    4. In 2020, Timmy owns a nightclub and videoke bar, with gross sales of
    P2,500,000 with cost of sales and operating expenses of P1,000,000 and
    P600,000, respectively and with non-operating income of P100,000.
    a. How much is income tax due?

    Gross sales P 2,500,000


    Non-operating Income 100,000
    Less: First 250,000 exempt from Income Tax (250,000)
    Taxable Sales 2,350,000
    Tax Rate 8%
    Income Tax Due 188,000
    Gross sales – nightclub and videoke bar P2,500,000
    Non-operating income 100,000
    Less: Cost sales (1,000,000)
    Taxable sales 1,600,000
    Less: Operating Expense (600,000)
    Total Taxable Income 1,000,000

    graduated Table

    Tax on the first P800,000 P130,000


    On the excess (P1,000,000 – 800,000)*30% 60,000
    Income Tax Due 190,000

    5. Lucky Comcepto, a Filipino citizen, won from the Philippine Charity


    Sweepstakes Swertres draw a prize amounting to P4,500.
    a. How much is the final tax on the said winning.?

    No final tax since that said prize is below 10,000.

    6.  Ben Marino, a seaman, opened a joint bank account, under the expanded
    foreign currency deposit system, with his wife. A month after, the bank
    deposit earned interest in the amount of USD1,000 (foreign exchange rate is
    P50 for every USD1).
    a. The final tax due on the interest income is?

    Earned Interest (USD 1,000 * P 50) = P 50,000

    Interest from foreign currency deposit (P 50,000*15%) P 7,500


    Royalty 0
    Prize 0
    Dividends 0
    Total 7,500

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