EXCERCISES.
CORPORATE INCOME TAX
Dark Desire Corporation, a MSME, reported the following gross income and
expenses in 2024:
Philippines Abroad Tota
l
Gross income P400,000 P300,000 P700,000
Deductions 200,000 150,000 350,000
Taxable Income P200,000 P150,000 P350,000
Compute the income tax due if the corporation is a/an:
1. Domestic corporation
2. Resident foreign corporation
3. Non-resident foreign corporation
4. Private proprietary educational institution or a non-profit hospital
majority of its income is from related activities.
5. Non-profit entity
6. Government-owned and controlled corporation
7. International carrier
8. Offshore banking unit
9. Non-resident cinematographic film owner, distributor or lessor
10. Non-resident owner or lessor of vessels
11. Non-resident owner or lessor of aircraft, machineries, and other
equipment
12. Non-profit association, 60% of its income was derived from unrelated
activities
A large domestic bank reports the following income from its regular
banking (RBU) and Foreign currency deposit unit (FCDU):
RBU FCDU
Interest from lending with - P300,000
FCDUs/OBUs
Interest from lending to other P2,000,000 3,000,000
residents
Interest from lending to non- 1,000,000 1,500,000
residents
Less: business expenses 1,800,000 2,000,000
Net income P1,200,000 P2,800,000
13. Compute the total final tax.
14. Compute the regular income tax.
Musk, a large shipping company, reported the following gross receipts and
deductions during the year:
Shipments TOTAL
Incoming Outgoing
Gross receipts P2,000,000 P3,000,000 P5,000,000
Less: deductions 1,500,000 2,000,000 3,500,000
Net income P500,000 P1,000,000 P1,500,000
Compute the tax due assuming the corporate taxpayer is a:
15. Domestic shipping carrier
16. Resident international shipping carrier
A large non-profit, non-stock school has a gross income of P4,000,000, only
40% of which was contributed by related activities and total expenses of
P3,000,000, 50% of which was incurred in connection with non-related
activities.
17. Compute the total income tax due if the income from non-related
activities is not used exclusively for educational purposes.
18. Compute the total income tax assuming the taxpayer is a private
school.
19. Compute the income tax due if all income of the non-profit
school is used for educational purposes.
The LingkodBayan Corporation had the following historical MCIT and RCIT data:
2024 2025 2026 2027
MCIT P120,000 P200,000 P190,000 P170,000
RCIT P110,000 P220,000 P0 P180,000
20. Basing solely on the information provided, what is the tax
due and payable respectively in 2024 and 2025?
21. In the immediately preceding problem, what is the tax
due and payable respectively in 2026 and 2027?
A large corporate taxpayer had the following data in 2029, its 5th year of
operation:
Philippines Abroad Tota
l
Sales P2,000,000 P3,000,000 P5,000,000
Less: cost of sales 1,200,000 1,800,000 3,000,000
Gross income from P800,000 P1,200,000 P2,000,000
operation
Interest on deposits 50,000 250,000 300,000
Total income P850,000 P1,450,000 P2,300,000
Less: business expenses 800,000 1,300,000 2,100,000
Net income P50,000 P150,000 P200,000
22. What is the MCIT?
23. What is the tax due assuming the taxpayer is a domestic
corporation?
24. What is the tax due if the corporation is a resident foreign
corporation?
