Scribd
Upload
59 views3 pages

Taxation Compress

Jane operates a convenience store and bookkeeping service. Her total receipts in 2020 were P1.1 million. After deducting allowable expenses of P800k, her taxable income was P300k. At the graduated tax rate, she owes P10k in income taxes. Palafox is an independent contractor who earned P4.25 million in gross receipts from engineering services in 2020. After deducting P3.15 million in expenses, his taxable income was P1.1 million. Under the graduated tax table, he owes P220k in income taxes. Timmy owns a nightclub that earned P2.5 million in gross sales and P100k in other income

Uploaded by

Julie Bagares
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
59 views3 pages

Taxation Compress

Jane operates a convenience store and bookkeeping service. Her total receipts in 2020 were P1.1 million. After deducting allowable expenses of P800k, her taxable income was P300k. At the graduated tax rate, she owes P10k in income taxes. Palafox is an independent contractor who earned P4.25 million in gross receipts from engineering services in 2020. After deducting P3.15 million in expenses, his taxable income was P1.1 million. Under the graduated tax table, he owes P220k in income taxes. Timmy owns a nightclub that earned P2.5 million in gross sales and P100k in other income

Uploaded by

Julie Bagares
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 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

You might also like