1 Dio, RC, tax due. World GSP 8,000,000.

00
New House 5,000,000.00
Gross sales, PH 1,900,000.00 Unutilized Amount 3,000,000.00
Gross sales, USA 1,000,000.00 FMV 9,000,000.00
Total Sales 2,900,000.00 Taxable Portion 3,375,000.00
CGT 202,500.00
COS, PH 1,300,000.00
Opex, PH 40,000.00 1ST STEP Unutilized portion
x
COS, USA 1,100,000.00 GSP
Opex, USA 65,000.00
(2,505,000.00) 2ND STEP
Taxable portion x

Non-operating income, PH 50,000.00

Taxable Income 445,000.00
3,375,000.00 X
Income Tax due: 41,250.00

2 If Dio is NRC, VAT Registered Within PH

Gross sales, PH 1,900,000.00

COS, PH 1,300,000.00
Opex, PH 40,000.00
(1,340,000.00)

Non-operating income, PH 50,000.00

Taxable Income 610,000.00

Income Tax due: 82,500.00

3 If DIO is RA, VAT Registered Within PH

Gross sales, PH 1,900,000.00

COS, PH 1,300,000.00
Opex, PH 40,000.00
(1,340,000.00)

Non-operating income, PH 50,000.00

Taxable Income 610,000.00
 Income Tax due: 82,500.00

4 Dio is NRAETB, VAT Registered Within PH

married, reciprocity Personal Exemption P30k

Gross sales, PH 1,900,000.00

COS, PH 1,300,000.00
Opex, PH 40,000.00
(1,340,000.00)

Non-operating income, PH 50,000.00

Taxable Income 610,000.00

Income Tax due: 82,500.00

5 Dio is NRAETB, VAT Registered Within PH

married, reciprocity Personal Exemption P35k

Gross sales, PH 1,900,000.00

COS, PH 1,300,000.00
(1,300,000.00)

Non-operating income, PH 50,000.00

Taxable Income 650,000.00

Income Tax due: 162,500.00

E Elena, part time trainer and has shoe store

1 Gross sales 1,100,000.00

Gross receipts 400,000.00
Non-op income 300,000.00
Gross Income 1,800,000.00
Exemption (250,000.00)
Taxable Income 1,550,000.00
8% Income Tax 0.08
Income Tax due 124,000.00

2 Gross sales 1,100,000.00

 Cost of sales (150,000.00)
Net sales 950,000.00
Opex (35,000.00)
Gross receipts 400,000.00
Non-op income 300,000.00
Taxable Income 1,615,000.00

Income Tax due 374,500.00

F Mixed Income Earners

1 Compensation Income 4,000,500.00
De minimis benefits (90,000.00)
Taxable Compensation Income 3,910,500.00
Income Tax Due 1,101,360.00

Gross sales 1,500,000.00

NonOp Income 700,000.00
Taxable Income 2,200,000.00
8% 0.08
Income Tax Due 176,000.00

Total Income Tax Due 1,277,360.00

2 Compensation Income 4,000,500.00

De minimis benefits (90,000.00)
Taxable Compensation Income 3,910,500.00

Gross sales 1,500,000.00

COS (500,000.00)
OpEx (300,000.00)
Net Sales 700,000.00
NonOp Income 700,000.00
Taxable Income 1,400,000.00

Total Taxable Income 5,310,500.00

Total Income Tax Due 1,549,360.00
Higher of GSP Taxable
=
and FMV portion

6% = CGT

0.06 ###
 Corporate Income Taxation

21 BDG Corporation had the following data for calendar year ending December 2021, its first year of operations:

Gross sales, PH 8,000,000.00

Gross sales, US 5,100,000.00
COS, PH 3,300,000.00
COS, US 2,300,000.00
Allowable deductions, PH 800,000.00
Allowable deductions, US 700,000.00

The corporation’s audited financial statements as of December 31, 2021 includes the following accounts:

Land, PH 50,000,000.00
Building, PH 25,000,000.00
Total Assets 180,000,000.00
*Net Assets 130,000,000.00

Compute the income tax due if the taxpayer is a domestic corporation:

Gross sales, PH 8,000,000.00

Gross sales, US 5,100,000.00
COS, PH (3,300,000.00)
COS, US (2,300,000.00)
Allowable deductions, PH (800,000.00)
Allowable deductions, US (700,000.00)
Taxable Income 6,000,000.00

Questions:
Income Tax Rate applicable? 25% 20%
Income Tax due if BDG Corp is a DC? 1,500,000.00

22 Compute the income tax due in number 21 if the taxpayer is a foreign corporation with a branch in the Philippines (RFC).

Gross sales, PH 8,000,000.00

COS, PH (3,300,000.00)
Allowable deductions, PH (800,000.00)
Taxable Income 3,900,000.00
Income Tax Due 975,000.00

23 Compute the income tax due in number 21 if the taxpayer is a foreign corporation with no branch or office in the Philippin

Gross sales, PH 8,000,000.00

COS, PH (3,300,000.00)
 Gross Income 4,700,000.00
Income Tax Due 1,175,000.00

24 SAA Corporation, domestic corporation, had the following financial data for taxable year ending April 30, 2021:

Gross Sales 15,000,000.00

Cost of Sales (8,500,000.00)
Allowable Deductions (2,500,000.00)
Taxable Income, 30 April 2021 4,000,000.00

May 1 - June 30, 2020 200,000.00

July 1, 2020 - April 30, 2021 666,666.67
Income tax due: 866,666.67

2014 2015 2016

RCIT/NCIT 30,000.00 50,000.00 30,000.00
MCIT 100,000.00 100,000.00 100,000.00
excess MCIT 70,000.00 20,000.00 70,000.00
Expiration 2017 2018 2019
Tax due
Tax Credits 2014
2015
Tax Payable
s first year of operations:

e following accounts:

h a branch in the Philippines (RFC).

h no branch or office in the Philippines (NRFC).

ear ending April 30, 2021:

2017 2018 2019

100,000.00 50,000.00 90,000.00
50,000.00 70,000.00 10,000.00
- 20,000.00 0
0 2021 0
100,000.00 70,000.00 90,000.00
(70,000.00) - (70,000.00)
(30,000.00) - (20,000.00)
- 70,000.00 -
 Corporate Income Taxation - MCIT

The records of SAG Corporation, domestic, organized in 2014, engaged in retail, show the following
in calendar years 2019, 2020, 2021:

2019 2020 2021

Sales 1,800,000.00 1,740,000.00 2,100,200.00
Cost of Sales 430,000.00 110,000.00 510,100.00
Operating Expenses 1,740,200.00 1,600,000.00 1,300,400.00
Non-operating income 400,000.00 70,000.00 230,000.00
CWT per BIR Form 2307 18,000.00 2,500.00 21,002.00

The Corporation had excess tax credits at the end of 2018 in the amount of P15,000.00. The Corporation
chooses to credit in future years any excess tax credits it may have in a taxable year. Additionally,
total assets did not exceed 100M.
Tax due Tax payable
25 Compute the tax due and tax payable for 2019. 35,400.00 2,400.00
26 Compute the tax due and tax payable for 2020. 25,500.00 23,000.00
27 Compute the tax due and tax payable for 2021. 103,940.00 55,978.00

2019 2020 2021

Sales 1,800,000.00 1,740,000.00 2,100,200.00
Non-operating income 400,000.00 70,000.00 230,000.00
Cost of Sales (430,000.00) (110,000.00) (510,100.00)
Gross Income 1,770,000.00 1,700,000.00 1,820,100.00
Operating Expenses (1,740,200.00) (1,600,000.00) (1,300,400.00)
Taxable Income 29,800.00 100,000.00 519,700.00
NCIT (Normal Corporate Income Tax) 8,940.00 25,000.00 103,940.00

MCIT (based on gross income) 35,400.00 25,500.00 18,201.00

Income tax due? HIGHER RCIT/MCIT 35,400.00 25,500.00 103,940.00

Excess MCIT N/A N/A (26,960.00)
Excess Tax Credits, 2018 15,000.00 - -
CWT BIR Form 2307 18,000.00 2,500.00 (21,002.00)
Income Tax Payable 2,400.00 23,000.00 55,978.00

Excess MCIT, if any (MCIT - RCIT) 26,460.00 500.00 0

Expiration 2022 2023 N/A
w the following

0. The Corporation
dditionally,
 Corporate Income Taxation - IAET

The records of a closely-held domestic corporation show the following data for fiscal year ending June 30, 2021:
Tax Treatment
Gross Income 1,500,000.00 RCIT
Business Expenses 600,000.00 RCIT
Gain on sale of business asset 60,000.00 RCIT
Interest on deposits with Metrobank, net of tax 5,000.00 PI
Sale of shares of stocks, not listed and traded:
Selling Price 150,000.00 CGT
Cost 115,000.00 CGT
Dividends from Victory Corporation, domestic 35,000.00 EXEMPTED
Dividends paid during the year 120,000.00
Reserved for building acquisition 300,000.00

49 In the previous fiscal year, the corporation suffered an operating loss of P130,000. This amount was
carried forward and claimed as deduction from gross income in fiscal year ending June 30, 2021. Also
in FY ending June 30, 2021, total CWT withheld from its income amounted to P40,000. The income
tax still due or payable for FY ending June 30, 2021?

Gross Income 1,500,000.00

Business Expenses (600,000.00)
Gain on sale of business asset 60,000.00
NOLCO (130,000.00)
Taxable Income 830,000.00

RCIT 166,000.00
MCIT 15,600.00

Tax due: 166,000.00

CWT (40,000.00)
Tax Payable: 126,000.00
r ending June 30, 2021:

0, 2021. Also
 Partnerships, Joint Ventures and Co-Ownership

A AB partnership with A and B as partners (both resident citizens) had a net professional income
amounting to P500,000 for 2021. Its other income included bank interest income of P8,000, net of final
withholding tax and royalty income of P10,000, net of the final withholding tax. Total assets of the
partnership amount to ₱50.0 Million.

A is single and has his own separate eatery business. In 2021, his business had net sales of ₱1,000,000,
cost of sales of ₱600,000, and operating expenses of ₱200,000.

Determine:
The net share of A in the income of the GPP:
The net taxable income and income tax payable of A who shares profit and loss equally with B in their GPP:
Using the preceding number, but it is a business partnership, the taxable income of the partnership is:
Using the preceding number, the net distributable share of B (resident citizen) is:

B A Co. and B Co., domestic corporations, both engaged in the transportation business with operations in
Northern and Central Luzon formed a joint venture agreeing to distribute the net income of the joint
venture equally. In calendar year 2021, the joint venture had a gross income of P5,000,000 and expenses
of P3,500,000.

Determine:
b.1 The Income tax liability of the JV: 375,000.00
b.2 The share of A. Co. in the distributable net income of the JV: 562,500.00
b.3 Final tax on the share of A. Co. in the distributable net income of the JV: -
,000, net of final
ssets of the

s of ₱1,000,000,

with B in their GPP:

partnership is:

th operations in
me of the joint
000 and expenses