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Tax - Income Tax

The document contains two examples of income tax computations under the TRAIN Law in the Philippines. The first example calculates tax due of ₱40,800 based on an annual salary of ₱843,200. The second calculates tax due of ₱780,180 based on gross compensation of ₱6,575,600.

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Alberto Nichols
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62 views2 pages

Tax - Income Tax

The document contains two examples of income tax computations under the TRAIN Law in the Philippines. The first example calculates tax due of ₱40,800 based on an annual salary of ₱843,200. The second calculates tax due of ₱780,180 based on gross compensation of ₱6,575,600.

Uploaded by

Alberto Nichols
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Tax I – Income Tax

1. Given:
 Annual Salary – 429,500
 Sales Commission – 379,000
 Overtime – 34,700
 Under the TRAIN Law, no deductions on SSS, Pag-ibig and Philhealth contributions and
Health Insurance Premium (36,000+18,000+24,000+65,800) on purely compensation
 Withholding Tax of = 72,000

Computation

Gross Compensation Income (whatever source) = 429,500 + 379,000 + 34,700 = 843,200

Tax due:

First 800,000 = 102,000

In excess of 800,000 (843,200-800,000=43,200) = 43,200x25%=10,800

Tax due = 102,000+10,800 = 112,800

Tax Withheld = 72,000

Tax Due (For payment) = 40,800

2. Given:
 Annual Salary – 5,850,900
 Overtime – 429,700
 Bonus – 295,000
 Under the TRAIN Law, no deductions on SSS, Pag-ibig and Philhealth contributions and
Health Insurance Premium (267,500+94,000+29,800) on purely compensation
 No exemption also on children or dependents
 Withholding Tax of = 995,000

Computation

Gross Compensation Income (whatever source) = 5,850,900+429,700+295,000=6,575,600

Tax due:

First 2,000,000 = 402,500

In excess of 2,000,000 (6,575,600-2,000,000=4,575,600) = 4,575,600x30%=1,372,680

Tax due = 402,500+1,372,680 = 1,775,180

Tax Withheld = 995,000

Tax Due (For payment) = 780,180

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