TAXATION

Question 1

refers to any person for who an individual performs any
service of whatever nature as employee for such person.
It is the person who has control over the payment of the
employee renumeration.

Answer 1

Employer

Question 2

refers to any individual who is a recipient of wages and
includes officers or elected official of the Government of the
Philippines or any political subdivisions, agency or instrumentality
thereof.

Answer 2

Employee

Question 3

What are the elements of employer and employee

Answer 3

1. Selection and engagement of employees
2. Payment of wages
3. Power of dismissal
4. Power of control

Question 4

What are the types of employees?

Answer 4

As to Functions
1. Managerial
2. Supervisory
3. Rank and file

As to Functions
1. Minimum wage earner
2. Regular Employees

Question 5

generally includes all renumerations
received under an employee-employer relationship

Answer 5

Gross Compensation Income

Question 6

includes employees contributions to GSIS,
SSS, Philhealth, HDMF and union dues.

Answer 6

Non-Taxable Compensation

Question 7

What is the De Minimis Benefit for Monetized Unused Vacation Leave Credits?
(Monetized Unused VL)

Answer 7

The amount not exceeding 10 days

Question 8

What is the De Minimis Benefit for Monetized Vacation and Sick leave credits?
(Monetized Unused SL)

Answer 8

0

Question 9

What is the De Minimis Benefit for Medical Cash allowance?

Answer 9

P3,000 per annum (1,500 per semester)

Question 10

What is the de Minimis Benefit for Rice Subsidy?

Answer 10

P24,000

Question 11

What is the de Minimis Benefit for Uniform and clothing allowance?

Answer 11

P6,000

Question 12

What is the de Minimis Benefit for Medical assistance

Answer 12

P10,000

Question 13

What is the de Minimis Benefit for laundry allowance?

Answer 13

P3,600

Question 14

What is the de Minimis Benefit for Employee Achievement Award?

Answer 14

P10,000

Question 15

What is the de Minimis Benefit for gift during Christmas and anniversaries?

Answer 15

P5,000

Question 16

What is the de Minimis Benefit for Meals?

Answer 16

0

Question 17

What is the de Minimis Benefit for collective bargaining agreement (CBA) and productivity incentive scheme in the taxable year?

Answer 17

P10,000

Question 18

treated as other compensation income under the
category of 13th month pay and other benefits

This is contractual

Answer 18

Rank and File

Question 19

taxed as fringed benefits

Answer 19

Managerial and Supervisory

Question 20

fixed renumerations received

Answer 20

Regular Compensation

Question 21

for other performance based pay

Answer 21

Supplemental Compensation

Question 22

includes other compensation received not classified as regular or supplemental compensation is exempt if not exceeding P90,000.

Answer 22

The 13th month pay and other benefits

Question 23

What are the requisites of regular Compensation?

Answer 23

1. Basic Salary
2. Fixed Allowances, like clothing allowance, fixed housing allowance,
   representation, transportation and other allowances.

Question 24

What are the exemption of taxability of allowances?

Answer 24

a. Ordinary and necessary allowance for travelling, representation or
entertainment expense relative to the discharge of his function
b. Expense subject to accounting or liquidation
C. Any excess advances returned to the employer

Question 25

- form of sales tax - it is tax on consumption levied on the sale, barter, exchange or lease of goods or properties and services. - indirect tax, be shifted or passed on to the buyer, transferee, or lessee of goods, properties or services.

Answer 25

Value Added Tax (VAT)

Question 26

Who are qualified in filing of VAT returns?

Answer 26

- person or business with aggregate amount of actual gross sales or receipt exceeds 3 million. - a person who imports goods

Question 27

What are the Value Added tax rates?

Answer 27

- 12% - Exempt - 0 rated

Question 28

- It occurs from the purchase of goods and services - means the vat due on or paid by VATregistered on importation of goods or local purchase of goods, properties, or services, including lease or use of property in the course of his trade or business.

Answer 28

Input VAT

Question 29

- means the VAT due on the sale, lease, or exchange of taxable goods or properties or services. It occurs from the sale of goods or services:

Answer 29

Output VAT

Question 30

What is the proforma for input VAT?

Answer 30

Debit. Credit Merchandise inventories INPUT VAT Cash To record purchase of inventories (Debit merchandise inventory, INPUT VAT, and credit Cash)

Question 31

What is the proforma for Output VAT?

Answer 31

Debit. Credit Cash OUTPUT VAT Sales To record sale of goods (Debit cash, credit output vat and sales)

Question 32

What is the formula for input and output VAT?

Answer 32

Cash x 100/112