Business math 1 Lesson 3 (Computing for Tax)

Question 1

Steps to compute for tax

Answer 1

1. Find out gross taxable compensation income.
2. Subtract personal exemptions from gross taxable compensation income to get taxable compensation income.
3. Tax due = y + __% of excess over x
   Where y = certain amount due depending on the amount of taxable compensation income, and x = excess amount due depending on the amount of taxable compensation income

Question 2

Personal exemptions according to the module

Answer 2

Single = PHP 20,000
Head of family = PHP 25,000
For each Married individual deriving income = PHP 32, 000

Qualified dependents (max 4) = PHP 8,000 each

Question 3

Tax due if taxable income is over PHP 10, 000 but not over PHP 30, 000

Answer 3

PHP 500 + 10% of the excess over PHP 10, 000

Question 4

Tax due if taxable income is less than PHP 10, 000

Answer 4

5%

Question 5

Tax due if taxable income is over PHP 30, 000 but not over PHP 70, 000

Answer 5

PHP 2500 + 15% of excess over PHP 30, 000

Question 6

Tax due if taxable income is over PHP 70, 000 but not over PHP 140, 000

Answer 6

PHP 8500 + 20% of excess over PHP 70, 000

Question 7

Tax due if taxable income is over PHP 140, 000 but not over PHP 250,000

Answer 7

PHP 22, 500 + 25% of excess over PHP 140, 000

Question 8

Tax due if taxable income is over PHP 250, 000 but not over PHP 500, 000

Answer 8

PHP 50, 000 + 30% of excess over PHP 250, 000

Question 9

Tax due if taxable income is over PHP 500, 000

Answer 9

PHP 125, 000 + 34% of excess over PHP 500, 000