The taxable income before income tax of Jackie Corporation for the current year was P500,000.

During the year, the corporation received the following refund of taxes paid in previous years and
recoveries of accounts written off, of which were credited to miscellaneous income. *

How much would be the income tax payable of the corporation for the current year?

Tax Benefit Rule

ear was P500,000.
previous years and
income. *
2022
urrent year? Taxable Income Before Income Tax 500,000
Refund of percentage tax
Refund of income tax -50000
Disallowed as deduction -15000

Taxable income as adjusted 435,000

25%
108,750
500,000 Taxable Income before any adjustment
20,000

30,000
An individual VAT taxpayer reported the following for the first quarter of the taxable year. *

Compute the income tax payable/overpayment of the company for the quarter.

Service Revenue 1,060,400

110%

Cost of Services 256,000

Deductible Expenses 411,950

100 107
12
-5
107

Taxable Income 323,000

250-400 250,000
73,000
20%
Tax Due 14600
Tax Credits 19280
Tax Payable / Overpay -4680
able year. *
SELLER BUYER
rter. 100% Vatable Sales 100 Purchases
12% Add: 12% VAT 12 Input VAT
Total 112 Total
2% CWTs / 2307 2 Less 2%
110% Net Proceeds 110 Net payment

Cash 110 Purchases

papel CWTs 2 Input VAT
(cr) Sales 100 (cr) Cash
(cr) Output VAT 12 (cr) EWT liab

964000 2% 19280 (CWTs)

EWT liab
(cr) Cash
Remittance to the BIR

385000 5% 19250 EWT to be remitted with the BIR

411,950
107
385000
 BUYER
100 100%
12 12%
112
2 EWT base and VAT base should be equal
110

100
12
110
2

2
2
nce to the BIR

12% 46200
5% 19250

411,950
A corporate taxpayer reported the following figures.

How much is the taxable income for 2026?

5 years 5 years

2022 2025 2026

2019 2020 2021
Gross Income 200,000 240,000 260,000
Allowable Deductions 250,000 220,000 350,000
Taxable Income, unadjusted -50,000 20,000 -90,000
NOLCO 20,000
Taxable Income / Net Loss, adjusted -50,000 0 -90,000

2022 2019 Loss 50,000 2021 90,000

Used in 2020 -20,000 2026 30,000
30,000 60,000
Used in 2022 25,000 40,000
Goodbye.. Sayang… 5,000 20,000
 2025 2026 2027 2028 2029
2022 2023 2024 2025 2026
285,000 300,000 315,000 340,000 400,000
260,000 270,000 340,000 300,000 320,000
25,000 30,000 -25,000 40,000 80,000 80,000
25,000 30,000 40,000 20,000 NOLCO from 2021
0 0 -25,000 0 25,000 NOLCO from 2024
35,000

2024 25,000
Used in 202 2027

Used in 2025
OLCO from 2021
OLCO from 2024
A corporate taxpayer with an Excess MCIT of P5,000 from 2018 had the following
figures for the year 2019.

How much is the income tax payable on the 2019 Annual Income Tax Return?

Q1 Jan-Mar 60 days from the end of the quart 30-May

Q2 Apr-June 60 days from the end of the quart 29-Aug
Q3 July-Sep 60 days from the end of the quart 29-Nov

Annual 15-Apr
Who is the taxpayerCorporation
2019 30%
Excess MCIT if you are in RCIT Position

Jan-Sep
Q1 Q2 Q3
Gross Income 560,000 450,000 520,000
AD 500,000 490,000 500,000
Taxable Income., this quarter 60,000 (40,000) 20,000
ADD: taxable income from previous quarter 60,000 20,000
Cumulative taxable income 60,000 20,000 40,000

RCIT 30% 18,000 6,000 12,000

MCIT 2% 11,200 20,200 30,600
Whichever is higher 18,000 20,200 30,600
Excess MCIT 5,000
First Quarter Payment 13,000 13,000
Second Quarter Payment 7,200
Third Quarter Payment
Income Tax Payable 13,000 7,200 10,400
Jan - Dec
Q4 (Annual)
670,000 2,200,000
480,000 1,970,000
190,000 230,000
40,000
230,000

69,000 69,000
44,000 44,000
69,000 69,000
5,000
13,000
7,200
10,400
33,400
For the taxable year, a resident foreign corporation, earmarked for remittance to its head office in
North Carolina, USA some of its income as follows. *

How much is the net amount to be remitted?

Passive investment income and gains are excluded.

 2022 BPRT
to its head office in
RFC

24,000,000 15% 3600000 20,400,000

12000000 15% 1800000 7,000,000
exempt 27,400,000

Net Income Before Tax 24,000,000

25% Income Tax
6000000

18,000,000
15% BPRT
2,700,000

15,300,000
7,000,000
22,300,000
Jack and Jackie are co-owners by virtue of a property given to them by their father. The co-
ownership had a gross rental income of P500,000 (gross of 5% tax) and expenses related to rental
activity of P300,000 but 10% is no deductible for the year 2018. They share in the profits at 75%
and 25%, respectively. Jack withdrew P50,000 from the co-ownership net income for the year while
Jackie did not.

How much is the income tax liability of the co-ownership?

The co-ownership IS NOT TAXABLE.

The CO-OWNERS are the taxable individuals.
ather. The co-
nses related to rental
the profits at 75%
ome for the year while
A publicly-held corporation shows the following data.

How much is the corresponding improperly accumulated earnings tax of said corporation?

CREATE replealed IAET, hence, NONE/ NIL / Not Applicable.

said corporation?
On July 31, 2019, Jack inherited properties worth P3,000,000 from her mother. The properties are earning
of P90,000 a month

How much income is to be reported by Jack in 2019?

90,000
Aug-Dec 5 months
450,000
graduated table
The properties are earning income
Jackie Company entered into a four-year P5,000,000 construction contract which was completed in 2023.
2020 - 10%, 2021 - 35%, 2022 - 70% and 2023 - 100%. Construction expenses incurred in each year are a
P700,000 and 2023 - P800,000.

Determine the highest reportable gross income in a single year throughout the period of constructi

10%
10%
2020
Contract Price 5,000,000
Percentage Completed 10%
Constrution Revenue 500000
Construction Expenses 300,000
Gross Income 200,000
 ct which was completed in 2023. Percentages of completion as of each year are as follows:
penses incurred in each year are as follows: 2020 - P300,000, 2021 - P800,000, 2022 -

ughout the period of construction.

35% 70% 100% Cumulative

25% 35% 30% 100%
2021 2022 2023
5,000,000 5,000,000 5,000,000
25% 35% 30%
1250000 1750000 1500000
800,000 700,000 800,000
450,000 1,050,000 700,000
A top withholding agent had the following income payments during the year. The IT technical consultants a
director is not an employee.

How much is the total creditable taxes withheld?

if Gross Income
RR 11-2018 professional - individual 3M or less 5% EWT
due to TRAIN more than 3M 10% EWT

professional - corporation 720K or less 10% EWT

more thank 720K 15%

Rent 5%

Service 2%

Goods 1%
chnical consultants are non-VAT taxpayers. The income payments = expenses

EWT Rate EWT Liabilit

200,000 5% 10000
350,000 2% 7000
700,000 1% 7000
1,200,000 10% 120000
400,000 5% 20000
164000
EWT

Net Proceeds
190,000
343,000
693,000
1,080,000
380,000
Jackie Bank is a commercial bank in the Philippines. It pays its depositors interest bimonthly. The followin
occurred during the second quarter of 2019.
• During April, it incurred the following interests on short-term deposits: P250,000 for resident citizens, P70
for resident aliens, P110,000 for non-resident citizens, P200,000 for domestic corporations and P50,000 fo
non-resident foreign corporations.
• During May, a deposit account of a decedent with a balance of P400,000 was withdrawn. A long-term dep
of a resident citizen was preterminated resulting to a holding period of three years. The preterminated de
had a principal of P250,000 and simple interest of 5% per annum which is fully payable upon maturity or pr
termination, whichever is earlier.
• During June, it withheld the following final taxes on interests on short-term deposits: P42,000 for resid
citizens, P10,000 for resident aliens, P20,000 for non- resident citizens, P60,000 for domestic corporations
P12,000 for non-resident foreign corporations. *

11. On the return covering the month of April, what amount is applicable to Item 17?
How much is the FWT

12. How much is the total net cash payments to both withdrawn account and preterminated deposit

13. Same figures from the previous problem

In the 1602Q covering the quarter, how much is the amount applicable to item 23?
(In short, how much is the FWT to be reported.
 0619F APRIL Interest Income
RC 250,000
erest bimonthly. The following RA 70,000
NRC 110,000
000 for resident citizens, P70,000
DC 200,000
corporations and P50,000 for
NRFC 50,000
s withdrawn. A long-term deposit
years. The preterminated deposit
y payable upon maturity or pre-

m deposits: P42,000 for resident

000 for domestic corporations and

to Item 17?
1601FQ JUNE
RC
and preterminated deposit? RA
NRC
DC
NRFC

MAY
0620 Decedent Account 400,000
0619F Preterminated Deposit - RC 37,500

Principal 250,000
5%
3 yrs
Interest Income 37,500
FWT Rate Final Tax Net Payment FWT
20% 50,000 200,000 April
20% 14,000 56,000 May
20% 22,000 88,000 Q2 -- June
20% 40,000 160,000
30% 15,000 35,000
141,000 539,000

42,000
10,000
20,000
60,000
12,000
144,000

6% 24,000 376,000
12% 4,500 33,000

12%
Jack and Dina, neighbors, sold their principal residences to a businessman who plans to build a
commercial complex on the whole block.
Jack sold his domicile at P900,000 above its tax basis of P1,500,000 while Dina sold hers at
P1,600,000 when its tax basis is P1,250,000. The fair values of both properties are lower than the
selling prices. Both deposited the appropriate amount of money is an escrow account with annual
interest of 4% to avail of the CGT exemption. Both were able to purchase their new principal
residence for P2,000,000 each after 5 months.

13. How much is the proceeds to be received by Jack from the escrow account?

14. Same figures from the previous problem.

How much is the new tax basis of Dina's principal residence?

15. Same figures from the previous problem.

How much is the total capital gains tax collected by the government?

144,000 120,000 24,000

96,000
 JACK DINA
o plans to build a Selling Price 2,400,000 1,600,000
Dina sold hers at CGT Rate 6% 6%
es are lower than the Escrow Account 144,000 96,000
ccount with annual 0.83
new principal 120,000

count? 144,000
4%
5 / 12 2,400
122,400

Selling Price 2,400,000 1,600,000

Purchase of new p 2,000,000 2,000,000
Partial 0.83 100%

400,000 Additional
1,250,000 Old tax basis
1,650,000 New tax basis
d tax basis
ew tax basis
17. A PEZA-registered enterprise started its commercial operations on July 1, 2017. Following is its financi

How much is the total income tax liability for 2021 should it be a pioneer enterprise?

18. Same figures from the previous problem

How much is the total income tax liability for 2021 should it be a non-pioneer enterprise?
2017. Following is its financial performance for the year 2021

enterprise?

neer enterprise?
Jack A. Moon is a rank-and-file employee for both of its two concurrent employers during the
taxable year 2020, neither of which is knowledgeable of Jack's employ on the other. Both
employers prepared Mr. Moon's Form 2316 without considering his other sources of income, thus,
only withheld income taxes applicable to benefits given to him. The following are the items of
compensation he received during the year

19. How much is the taxable compensation net income?

loyers during the
other. Both
ces of income, thus,
are the items of

WTC 90K De Minimis

A purely self-employed non-VAT taxpayer operating a merchandising business had the following financi
to be taxed at the 8% optional income tax which resulted to income tax liability of P140,000 for the taxable

20. Should the taxpayer had chosen to use the graduated rates and optional standard deduction, ho
income tax liability?

21. Same figures from the previous problem.

Should the taxpayer also earn a taxable compensation income of P380,000, how much is the
total income tax due under the 8% optional income tax?

use
 ess had the following financial figures. It opted
y of P140,000 for the taxable year.

onal standard deduction, how much is its

140,000 MIXED
2,000,000 8%
1,750,000 Compensation Income
250,000
Total Income 2,000,000
Other Operating Income 150,000 Business Income
Non-operating Income 50,000
Gross Sales 1,800,000

150,000
Gross Sales 1,800,000 25%
Other Operating Income 150,000 600,000
Gross Income for OSD 1,950,000 450,000
40% 800,000
780,000 1,850,000
00, how much is the 150,000
Gross Income 1,170,000 50,000
Non-operating Income 50,000 1,650,000
Total taxable Income 1,220,000
800,000
420,000
30%
126,000
130,000
256,000
 380,000 250,000 130,000
20%
26000
2,000,000 8% 160,000
186,000

RCIT / MCIT Payable

RCIT; 2022 Tax Credits
Taxable Income Tax Due
RAID / Deductible Expenses 25%
Cost of Sales Taxable Income
Total Gross Income
Other Operating Income
Non-operating Income
Gross Sales
A domestic corporation reported the following for the taxable year.

22. How much is the income tax payable should the taxpayer claim the foreign taxes paid as deduc

23. Same figures from the previous problem.

How much is the income tax payable should the taxpayer claim the foreign taxes paid as credits?
oreign taxes paid as deductions?

gn taxes paid as credits?

A taxpayer had the following for the three taxable years.

24. Assume it is a corporate taxpayer, how much is its taxable income for 2018?

25. Same figures from the previous problem.

Assume it is an individual taxpayer, how much is its taxable income for 2019?

26. Same figures from the previous problem. *

Assume it is an individual taxpayer, how much is its taxable income for 2020?
 Jackie, not a dealer in securities, had the following transactions on ordinary
shares of Zhakie Co. (a domestic corporation) for 2021 taxable year:

Jan. 12 Purchase 100 shares 100,000

20-Jun Sold the shares purchased on Jan. 12 80,000
10days 30-Jun Purchased 70 shares 50,000
Oct. 15 Sold the shares purchase on June 30 75,000

How much was the capital gain on sale of shares on October 15?

Purchased 70 shares 50,000

Add: Deferred Loss 14000
64,000
Sold in Oct 15 75,000
11,000

Purchase
Sale in a loss
Purchase
Shares Share price
100 1000
100 800 20,000 100
70 714.285714 70 14000
30 6000
In 2021, Mr. Jackie created two (2) trusts for his minor son, Zhakie. During the year, the two trusts earned
follows: Trust 1 – P4,000,000, Trust 2 – P6,000,000. Each trust filed their own income tax return and paid t
income tax due as computed in their separate returns

How much is the additional tax payable of Trust 2?

e year, the two trusts earned net income as
income tax return and paid the corresponding