MODULE 3 LESSON 1-2 Flashcards

(43 cards)

1
Q

the corporate tax in the country is , which is applied to all net incomes from the entire tax table sources

A

30%

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2
Q

for the highest income bracket

A

32%

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3
Q

The Philippines taxes its resident citizens on their

A

worldwide income

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4
Q

is governed chiefly by the Constitution of
the Philippines and three Republic Acts.

A

taxation in the Philippines

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5
Q

states that “the rule of taxation
shall be uniform and equitable” and that “Congress shall evolve a progressive system of
taxation”.

A

Article VI, Section 28 of the Constitution

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6
Q

Income of residents in Philippines is taxed progressively up to

A

32%

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7
Q

This income is taxed at progressive rates on gross income after deduction of personal and additional exemptions but without deductions for expenses

A

compensation income

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8
Q

This income, including dividends
and interest, is subject to tax at 7.5%

A

passive income

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9
Q

This income is taxed at progressive rates on net business income after deduction of certain specified expenses.

A

business income and professional income

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10
Q

both for domestic and resident foreign corporations is 30% based on net taxable income

A

corporate income tax rate

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11
Q
  • is a corporate tax obligation paid by taxpayers engaged in trade or business activities in the Philippines. Employers withhold from the salary of their employees every month and each amount withheld serves as an advanced payment for the employer’s Income Taxes during the business year
A

withholding tax

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12
Q

of the gross selling price is imposed to all importation, sale, barter, exchange or lease of goods or properties and sale of services.

A

Value Added Tax (VAT) 12%

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13
Q

’ means the total amount of money or its equivalent that the purchaser pays or
is obligated to pay to the seller in consideration of the sale, barter or exchange of the goods
or properties, excluding the value added tax.

A

Gross selling price

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14
Q

is based on the taxpayer’s ability to pay. It imposes a lower tax rate
on low-income earners than on those with a higher income. This is usually achieved by
creating tax brackets that group taxpayers by income ranges.

A

progressive tax

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15
Q

is the rate at which an additional dollar of taxable income would be
taxed. It is part of a progressive tax system, which applies different tax rates to different
levels of income. As income rises, it is taxed at a higher rate (according to the bracket it falls
in).

A

Marginal tax rate

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16
Q

how to avoid tax refund

A

 ST E P 1 : ESTIMATE NEXT YEAR’ S INCOME
 ST E P 2 : ESTIMATE DEDUCTIONS
 ST E P 3 : DETERMINE TAX
 ST E P 4 : ADJUST WITHHOLDINGS

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17
Q

is an organization that receives deposits, honors checks drawn on those
deposits, and pays interest on them. Banks also make
loans and invest in securities.

A

bank

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18
Q

helps you protect and
manage your money.

19
Q

Banks offer three main types of
accounts:

A

checking, savings, combination accounts

20
Q

Banks profit came from

A

the difference of interest rates

21
Q

is the amount paid for the use of money

22
Q

when choosing a bank consider:

A

The services you want
Bank fees
Atm convenience
Insurance
Online banking
Customer service
Location

23
Q

is an alternative to a bank. It is a cooperative financial institution that is owned and controlled by the people who use its services. The people who use a credit
union are its members, and they have something in common such as where they work, live, or attend church.

24
Q

account is for someone who primarily wants to use checks
to pay bills or everyday expenses. To avoid fees, some banks require a low
minimum balance.

A

basic checking

25
account requires a higher balance, and interest is usually paid monthly. A minimum deposit is typically required to open this type of account.
interest-bearing
26
account is for two or more people who are typically in the same household.
joint checking
27
is a written order instructing your bank to pay money to an individual or entity
check
28
5 Banking Fees that Slowly Killing your Savings
monthly maintenance fees minimum balance fees ATM fees overdraft fees paper statement fees
29
allow you to make a minimum deposit, beginning as low as P100. These types of plans earn low interest rates, but you can easily withdraw or deposit funds
basic savings or passbook savings
30
earn a higher interest rate than traditional savings accounts, but you must make a larger minimum deposi—between $1,000 and $5,000. And, you must keep your money in the CD for a specified period of time. There is a penalty for early withdrawal.
Certificates of deposit (CD) accounts
31
7 Tips to Manage Your Checking Account
1. Use automation 2. Know your balance 3. explore the mobile app 4. embrace potential earnings 5. avoid fees 6. consider consolidating 7. decide where to keep extra money
32
The bank uses the card to verify the signature on checks that bear your name.
signature cards
33
parts of a check
issuing bank/drawee routing/acct no. payee check no. account name/ owner of account signature of drawer amount in words amount in figures Date
34
5 banking fees that slowly killing your savings
Monthly maintenance fees minimum balance fees ATM fees paper statement fees overdraft fees
35
looks like a credit card. because it is linked to your bank account(s). you can use it to get cas, deposit funds, and check account balances at an automated teller machine (ATM). ATMs are convenient because they are available 24 hours a day at different locations.
Atm card
36
combines the functions of an ATM card and a check. it can be used luke a check
debit card
37
allows you to keep your koney in a safe place and earn interest on it.
savings account
38
Three main types of savings account
-Basic savings or passbook accounts -certificates of deposit (CD) -money market accounts
39
allow you to make a minimum deposit beginning as low as P100. These types of plans earn low interest rates, but you can easily withdraw or deposit funds.
basic savings or passbook accounts
40
accounts earn a higher interest rate than traditional savings accounts, but you must make a larger minimum deposit—between $1,000 and $5,000. And, you must keep your money in the CD for a specified period of time. There is a penalty for early withdrawal
certificates of deposit
41
earn a higher interest rate than traditional savings accounts, but you must make a larger minimum deposit. there is also a limit on the number of monthly withdrawals from this type of account
money market accounts
42
help you keep a current record of your savings account
passbook
43
Most common checking options
1. Basic checking account 2. interest-bearing account 3. joint checking account