APLICACIÓN A PLANTA DE COGENERACION
COMUN temperatura mezcla Cámara combustión 500 °C
7.6 SENSOR DE NIVEL
1. False. The taxpayer is still required to file an income tax return, since the source of income is from business. 2. False. Only on income within the Philippines.
3. False. There are only two employers; hence, the taxpayers are required to file though the income did not exceed P60,000.
5. False. The Statement of Net Worth and Operation shall be attached to the tax return if the gross receipts do not exceed P50,000 in any quarter.
6. False. The centavos shall never be dropped or rounded off in the tax due after tax credit.
7. True
8. False. Income tax credits are deductible against income tax liabilities.
9. True
10. False. Non-resident citizens are taxable only on income within the Philippines. Hence, taxes paid in a foreign country cannot be claimed as tax credit.
True or False 8-2
1. False. Taxes paid in a foreign country are subject to limitation if claimed as tax credit.
2. False. Only individual taxpayers can avail of the installment method of paying income tax in excess of P2,000.
3. False. The second installment is due on July 15. 4. True
5. False. The income is classified as income from outside the Philippines. The threshold is 50%.
6. True
7. False. If the internal revenue taxes are more than P10,000, the over-the-counter of EFPS may be adopted.
8. False. Substitute filing is applicable if there is only one employer.
9. False. The payment of taxes due shall be made through the AAB.
10. True
1. B 6. C 2. B 7. C 3. C 8. B 4. A 9. D 5.D 10. B Exercise 8-1 A Gross income (2,500,000 – 1,500,000) 1,000,000 Less: Allowable business expense 450,000 Taxable income before exemption 550,000 Less: Personal exemption
(P50,000 + 100,000) 150,000
Taxable net income 400,000
======= Exercise 8-2 C On P250,000 50,000.00 On excess (P400,000 – 250,000) x 30% 45,000,00 Total 95,000,00 Add: Surcharge (P95,000 x 25%) 23,750,00 Interest (P95,000 x 20% x 139/360) 7,336.11
Total tax due and payable 126,086.11
========
Exercise 8-3 D
Net salaries subject to tax
(490,000 – 6,000 – 4,000) 480,000 Net business income subject to tax
(P1,800,000 – 950,000) 850,000
Taxable net income before
personal exemption 1,330,000
Less: Personal exemption
(P100,000 + 75,000) 175,000
Taxable net income 1,155,000
Exercise 8-4 B
On 500,000 125,000.00
On excess (P1,155,000 – 500,000)
x 32% 209,600.00
Total 334,600.00
Less: Quarterly tax paid 180,000.00 Withholding tax on wages 60,000.00 240,000.00
Tax due before penalties 94,600.00
Add: Surcharge (P94,600 x 25%) 23,650.00 Interest (P94,600 x 20% x 35/260) 1,839.44 Total taxes still due and payable 120,089.44 ========
Exercise 8-5 B
Gross income (4,000,000 – 2,200,000) 1,800,000 Add: Interest income
on notes receivable 20,000
Total gross income 1,820,000
Less: Business expenses 1,100,000 Interest expense
[70,000 – (90,000 x 33%) 40,300 1,140,300 Income before charitable contribution 679,700 Less: Charitable contribution
Actual 80,000
Limit (P679,000 x 10%) 69,970 69,970
Taxable income before personal exemption 611,730
Less: Personal exemption (P50,000 + 100,000) 150,000
Taxable net income 461,730
Exercise 8-6 A
On P250,000 50,000.00
On excess (461,730 – 250,000) x 30% 63,519.00
Total 113,519.00
Less: Quarterly tax payment 95,000.00
Balance 18,519.00
Add: Surcharge (P18,519.00 x 25%) 4,629.75
Total tax due and payable 23,148.75
======== Exercise 8-7 B
Total taxable income
(P415,000 + 150,000) = 565,000
On P500,000 125,000.00
On excess
(565,000 – 500,000) x 32% 20,800.00
Total 145,800.00
Less: Tax previously paid on P415,000
On P250,000 50,000 On excess (415,000 – 250,000) x 30% 49,500 99,500.00 Deficiency tax 46,300.00 Add: Surcharge (46,300 x 50%) 23,150.00 Interest (P46,300 x 20% x 107/160) 2,752.78 25,902.78
Total tax still due 72,702.78
========
Exercise 8-8 C
Total deficiency assessment 72,702.78 Add: Surcharge (P72,702.78 x 25%) 18,175.70
Interest (72,702.78 x 20% x 15/360) 605.86
Total 91,484.34 =======
Exercise 8-9 A
Gross income (5,000,000 + 3,000,000) 8,000,000 Less: Business expense
(P3,500,000 + 2,400,000) 5,900,000 Income taxes paid in Australia 200,000 6,100,000
Net business income 1,900,000
Add: Interest income – Australia 30,000
Royalty income – Australia 20,000 50,000
Net income 1,850,000
Less: Personal exemption
(P50,000 + 75,000) 125,000
Net taxable income 1,725,000
=======
Exercise 8-10 B
Tax on P500,000 125,000
Tax on excess
(P1,725,000 – 500,000) x 32% 393,000 Total tax before tax credit 517,000
Less: Taxes paid 300,000
Income tax still due 217,000
=======
Exercise 8-11 D
Gross income (5,000,000 + 3,000,000) 8,000,000 Less: Business expense
(P3,500,000 + 2,400,000) 5,900,000
Net business income 2,100,000
Add: Interest income – Australia 30,000
Royalty income – Australia 20,000 50,000
Net income 2,050,000 Less: Personal exemption
(P50,000 + 75,000) 125,000
Net taxable income 1,925,000
=======
Exercise 8-12 C
Tax on P500,000 125,000
Tax on excess
(P1,925,000 – 500,000) x 32% 456,000
Total tax due 581,000
Less: Tax credit
Philippine taxes paid 300,000 Taxes paid in Australia
Actual 200,000 Limit (P600,000/2,100,000) x 581,000 166,000 Lower 166,000 466,000
Income tax still due after tax credit 115,000 =======
Problem 8-1
1. Gross business income 4,500,000
Cash dividend from non-resident
foreign corporation 9,000 Property dividend from resident
foreign corporation 36,000
Salary and allowances 500,000
Gain on sale of jewelry (80,000 – 35,000) 45,000 Interest earned on premium 10,000 Christmas and incentive
(28,000 + 15,000) – 30,000 13,000 Interest income on deposit abroad 10,000
=======
2. Gross taxable income 5,123,000
Less: Cost of sales and
other allowable expenses 2,800,000 Past pension cost
(250,000/10) 25,000
Interest expense
[80,000 – (60,000 x 38%)] 57,200 Fringe benefits to supervisor
(40,800/68%) 60,000
2,942,200
Income before donation 2,180,800
Less: Donation – actual
(150,000 + 25,000) 175,000 - limit (2,180,000 x 10%) 218,080 - lower (actual) 175,000
Net income before personal exemption 2,005,800 Less: Basic personal exemption 50,000
Additional exemption 50,000 100,000
Net taxable business income 1,905,800
=======
3. Taxable net Tax due
Income On 500,000 125,000 On excess (1,905,800 – 500,000) x 32% 1,405,800 449,856 Total 1,905,500 574,856 =======
Less: Quarterly tax paid 175,000
Tax due and payable 399,856
4. Tax due and payable 399,856.00 Add: Surcharge (399,856 x 25%) 99,964.00 Interest (399,856 x 20% x 4.5/12) 29,989.20 Tax due and payable – September 1 529,809.20
========
Problem 8-2
1. Installment method not adopted by taxpayers
Carlos Daisy(Spouse) Compensation income
First Com’l. Corp.
Salary (480,000 + 55,000) 535,000 13th month pay (55,000 – 30,000) 25,000 Greater Libungan (60,000 + 14,400) 74,400 Brownies Corporation (240,000 + 35,000) 275,000
Total gross compensation 634,400 275,000
Less: Basic personal
exemption (M) 50,000 50,000 Additional (25,000 x 3) 75,000
125,000 50,000
Net taxable income 509,400 225,000
====== ======
Tax due 128,008 43,750
Less: Tax withheld 69,400 35,000
Tax due and payable 58,608 8,750
====== =====
2. Taxpayers adopted installment payment of tax
Tax due before tax credit 128,008 43,750
Divided by 2 2
Total 64,004 21,875
Less: Tax withheld 69,400 35,000
First installment payment of tax (for credit on second
installment ( 5,396) (13,125)
Second installment 64,004 21,875 Less: Excess of 1st installment ( 5,396 ) (13,125) Tax due on 2nd installment 58,608 8,750
====== =====
Problem 8-3
Edwin Nancy (Spouse)
Compensation income
(216,000 + 25,000) - 241,000
Business income
Sales (net) 2,788,000
Less: Cost of sales 1,775,000
Gross profit 1,013,000
Less: Allowable business expenses 503,000 -
Net income/compensation
before exemption 510,000 241,000 Less: Basic personal
exemption 50,000 50,000 Additional exemption 75,000 125,000
50,000
Taxable net income 385,000 191,000
======= ======
Tax due 90,500 35,250
Less: Tax credit 25,000
Tax due and payable 90,500 10,250
====== =====
Problem 8-4
Resident Citizen Non-resident Gross profit from sales 6,000,000 3,600,000 Gross compensation income 525,000 525,000 Gain from sale of business assets 195,000 195,000
Rental income 150,000 150,000
Interest income – Singapore 115,000
Royalty income – Singapore 255,000 -
Total 7,240,000 4,470,000
Other gross income –partly within and without 225,000 (4,320,000/7,240,000) x 225,000 134,254
Gross income 7,465,000 4,605,254 ======= ======= Problem 8-5 1. a. 8,102,000 b. 5,250,182 Resident Non-resident Gross business income 7,800,000 5,000,000 Compensation income
(150,000 + 12,000) 162,000 162,000 Interest on loan 5,000 - Property dividend 25,000 -
Rental income 50,000 50,000
Cash dividend from resident foreign corporation 60,000 (7,000,000/11,000,000)
= .636363 x 60,00 38,182
Gross taxable income 8,102,000 5,250,182
======= =======
2. Gross taxable income abroad
Gross business income – Malaysia 2,800,000
Interest on loan 5,000
Property dividend 25,000
Cash dividend partly abroad 38,182
Total 2,868,182
=======
Problem 8-6
1. Gross business income
(P6,000,000 + 4,000,00) 10,000,000
Less: Business expenses
(P4,000,000 + 3,500,000) 7,500,000 Taxes paid in Singapore 300,000 7,800,000
Net income before other income 2,200,000 Add: Royalty – Singapore 50,000
Interest on bank deposit
100,000
Net income 2,100,000
Less: Personal exemption
(P50,000 + 100,000) 150,000
Net taxable income 1,950,000
=======
Tax on P500,000 125,000
Tax on excess (P1,950,000 – 500,000) 32% 464,000
Total 589,000
Less: Philippine taxes paid 450,000
Income tax still due 139,000
======= 2. Gross business income
(P6,000,000 + 4,000,00) 10,000,000
Less: Business expenses
(P4,000,000 + 3,500,000) 7,500,000
Net income before other income 2,500,000 Add: Royalty – Singapor 50,000
Interest on bank
deposit – Singapore 50,000 100,000
Net income 2,600,000
Less: Personal exemption
(P50,000 + 100,000) 150,000
Net taxable income 2,450,000
========
Tax on P500,000 125,000
Tax on excess (P2,450,000 – 500,000) x 32% 624,000
Total 749,000
Less: Tax credit
Philippines income tax paid 500,000 Singapore
Actual 300,000
Limit (P500,000/2,500,000) x 749,000 149,800
Lower 149,800
649,800
Income tax still due 99,200
Problem 8-7
Taxable income – Philippines 3,000,000
- Malaysia 2,000,000 - Taiwan 500,000 Total 5,500,000 ======= Tax on P500,000 125,000.00 Tax on excess (P5,500,000 – 500,000) x 32% 1,600,000.00 Total 1,725,000.00
Less: Tax credit
Philippine quarterly tax 700,000.00 Malaysia Actual 600,000.00 Limit (P2,000,000/5,500,000) x 1,725,000 627,272.72 Lower 600,000.00 Taiwan Actual 250,000.00 Limit (500,000/5,500,000) x 1,725,000 156.818.18 Lower 156,818.18 1,456,818.18
Philippine income tax still due
after tax credit 268,181.82
=========
CHAPTER 9