PHINMA UNIVERSITY OF PANGASINAN

INCOME TAXATION ENHANCEMENT

QUIZ 2
Name: Date:
Year and Section: Score:

PROBLEM SOLVING
1) A Resident Citizen taxpayer received a ₱ 167,500 interest income from a bank. Determine the final
tax withheld at source?

PLANET G Bank incurs the following interest in its savings and time deposit accounts from the
following depositors:
Depositors Amount
Resident individuals ₱1,200,000
Resident and domestic corporations 1,600,000
Non-resident aliens not engaged in business 400,000
Total accrued interest expense 3,200,000

2) Compute the total final income tax to be withheld by PLANET G Bank

Mr. Nathanael is an Overseas Filipino Worker. He deposits all his savings in a savings account
under the foreign currency deposit unit (FCDU) of a domestic bank. During the month, the
savings deposit account earned $1,000 ($1: ₱56) interest equivalent to P82,500.
3) Scenario 1: Mr. Nathanael deposited his savings through the account of his resident wife. The
final tax shall be
4) Scenario 2. Mr. Nathanael deposited his savings through a joint account with his resident wife.
The final tax shall be

NEBRA G. hired to produce EMPYRADORA beverages, has the following income for the year 2024
Interest from ANASTASIA bank, a nonresident Japanese bank ₱1,500,000
Interest from receivable from customers 1,400,000
Interest from DAWNJA bank, a domestic bank in USD 1,500,000
Interest from LUXXE bank, a domestic bank made 3 years ago the deposit ends in 2025 1,350,000
Interest from MAIA bank, a domestic bank on a 4 year deposit which begun on July 1 1,100,000
2021. The deposit was pre-terminated on May 31 of this year
Dividends from BACARDI B corporation, a Japanese corporation 1,150,000
Dividends from a domestic corporation 1,250,000
Royalties from its franchise 12,500,000
Prizes from contest 650,000
5) How much is the final withholding tax if the tax payer is a Resident Citizen?
6) How much is the final withholding tax if the tax payer is a Non-Resident Citizen?
7) How much is the final withholding tax if the tax payer is a Resident Alien?
8) How much is the final withholding tax if the taxpayer is a Non-Resident Alien Engaged in Trade
and business?
9) How much is the total passive income if the taxpayer is a Non-Resident Alien Not Engaged in
Trade and business?
10) How much is the final withholding tax if the taxpayer is a Non-Resident Alien Not Engaged in
Trade and business?

11) Dawnja a resident citizen deposits ₱6,000,000 in the 180 day time deposit of BDO. The deposit
pays annually of 8% interest. Compute for the final tax on maturity of the deposit
12) Assume that Dawnja is a non-resident alien not engaged in trade and business. Compute for the
final tax on maturity of the deposit

A tax payer earned the following interest income from various time deposits
6-month time deposit ₱32,000
2 years’ time deposit 74,000
5-year time deposit 241,000
Total interest income 351,000
13) Compute the final tax if the tax payer is an Individual
14) Compute the final tax if the tax payer is a corporation

Anastasia has the following data on her passive income earned during the year:
Philippines Abroad Philippines Abroad
Interest income from ₱ bank deposit 90,000 25,000
Interest income from $ bank deposit 100,000 -
Royalties from books 40,000 40,000
Royalties from computer programs 40,000 40,000
Dividend income from domestic corporation 54,000 33,000
Dividend income from foreign corporation 66,000 22,000
PCSO Winnings 4,000,000 -
Lotto Winnings from US - 50,000
Prize won in contest in the US - 60,000
15) How much is the final withholding tax if the taxpayer if a Resident Citizen?
16) How much is the final withholding tax if the taxpayer is a Non-Resident Citizen?
17) How much is the final withholding tax if the taxpayer is a Resident Alie?
18) How much is the final withholding tax if the taxpayer is a Non-Resident Alien Engaged in Trade
and business?
19) How much is the total passive income if the taxpayer is a Non-Resident Alien Not Engaged in
Trade and business?
20) How much is the final withholding tax if the Taxpayer is a Non-Resident Alien Not Engaged in
Trade and Business?

Use the following data for the next 10 questions:

CJ, single, had the following data for 2021 taxable year:
Gross business income, Philippines ₱2,000,000
Gross business income, USA 1,000,000
Business expenses, Philippines 1,400,000
Business expenses, USA 860,000
Compensation income, Philippines 1,200,000
Dividend income from a domestic corporation 100,000
Dividend income from a resident foreign corporation 80,000
Interest income from peso bank deposit-Philippines 40,000
Interest income from bank deposits abroad 60,000
 Interest income from FCDS deposits 80,000
Royalty income from composition 50,000
Raffle draw prizes 10,000
PCSO winnings 400,000
Creditable withholding taxes on business income 250,000

Determine the following assuming the taxpayer is a resident citizen

21) Taxable net income
22) Income tax payable
23) Total final taxes on passive income
Determine the following assuming the taxpayer is a nonresident citizen
24) Taxable net income
25) Income tax payable
26) Total final taxes on passive income
Determine the following assuming the taxpayer is a nonresident alien engaged in trade or
business
27) Taxable net income
28) Income tax payable
29) Total final taxes on passive income:
30) Determine the total income taxes of the taxpayer assuming the taxpayer is a nonresident alien
not engaged in trade or business (ignore business income, business expenses and creditable
withholding taxes on business income in the Philippine