CHAPTER 4 Flashcards
Taxable on world income
RC, DC
Taxable only on Philippines
NRC, RA, NRA-ETB, NRA-NETB, RFC, NRFC
3 INCOME TAX SCHEME
FINAL INC TAX
CAPITAL GAINS TAX
REGULAR INC TAX
3 INCOME TAX TREATMENT
EXEMPT
FINAL TAX
REGULAR INC TAX
HOW MUCH INCOME SUBJECT IN FINAL TAX
9 INCOME
HOW MUCH INCOME SUBJECT IN EXEMPT
22 EXEMPT
3 ELEMENTS OF GROSS INCOME
RETURN ON CAPITAL (INCREASE ON NETWORTH)
REALIZED BENEFIT
IT SHOULD NOT BE EXEMPT BY THE LAW
IN REGULAR INCOME TAX:
INDIVIDUAL
GROSS INCOME LESS ALLOWABLE DEDUCTION =
TAXABLE INCOME (THEN TAXABLE INC X TAX TABLE)
TAXABLE INCOME IS TAX ________
TAX BASED
TAX DUE IS?
BINABAYARAN NA TAX
IN REGULAR INCOME TAX:
CORPORATION
TAXABLE INCOME x WHAT PERCENTAGE?
20% OR 25%
WHOS ARE NOT TAXABLE IN REGULAR INC TAX
NRA-NETB, NRFC
2 ACCOUNTING PERIOD
REGULAR AND SHORT ACCOUNTING PERIOD
2 REGULAR PERIOD
CALENDAR
FISCAL
WHO R ALLOWED IN USING CALENDAR PERIOD
CORPORATE AND INDIVIDUAL
WHO R ALLOWED IN USING FISCAL PERIOD
CORPORATE ONLY
5 INSTANCES OF SHORT ACCOUNTING PERIOD
NEWLY COMMENCED BUSINESS
DISSOLUTION OF BUSINESS
CHANGE OF ACCOUNTING PERIOD
DEATH OF THE TAXPAYER
TERMINATION OF THE PERIOD BY COMMISIONER
TYPES OF RETURN
INCOME TAX RETURN
WITHHOLDING TAX RETURNS
INFORMATION RETURNS
PAYMENT OF INCOME TAX
PAY AS YOU FILE
PENALTIES FOR LATE FILING OR PAYMENT OF TAX
SURCHARGE
25% BASIC TAX FOR FAILURE TO FILE OR PAY
50% WILFULL NEGLECT
PENALTIES FOR LATE FILING OR PAYMENT OF TAX
INTEREST
12% PER ANNUM (OLD)
6% (UPDATED)
PENALTIES FOR LATE FILING OR PAYMENT OF TAX
COMPROMISE
IN LIEU OF CRIMINAL PROSECUTION OVER A TAX VIOLATION
(5O % REDUCTION NOW)
PENALTIES FOR LATE FILING OR PAYMENT OF TAX
SURCHARGE
(FOR MICRO OR SMALL TAX PAYER)
10%
