PRACTICE PROBLEM
COMPUTATION OF INCOME TAX DUE OR PAYABLE: (basic problem)
1. Pedro is a Resident Citizen, earning pure compensation income with the following annual taxable income:
How Much is income Tax due?
Case 1: P200,000
Case 2: P250,000
Case 3: P800,000
Case 4: P2,800,000
2. Juan (RC), earning purely business income:
Gross sales P2,800,000
Cost of sales 1,200,000
Opex 650,000
Creditable withholding taxes 80,000
Determined the Basic income tax due and business tax assuming Juan opted Graduated tax?
3. Using the same data in number 2, compute for the income tax due and business tax if Juan opted 8% PTR?
4. Elsa is a practicing professional with the following data for taxable year:
Gross receipts/sales 4,000,000
Cost of direct services 1,800,000
Other Opex 825,000
Compute for income tax due and payable
5. Using the data in number 4, can Elsa choose to be taxed at 8%? If yes, how much is her income tax payable?
COMPUTATION OF BASIC INCOME TAX, FWT AND CGT: (COMPREHENSIVE PROBLEM)
Mr. Khristian, a practicing professional and single, revealed the following data for the taxable year:
Income from
Philippines Abroad
Income from employment ₱180,000 ₱280,000
Business income 850,000 960,000
Deductible business expenses 610,000 730,000
Interest income on personal loans 6,000 3,000
Interest income on bank deposits 10,800 4,200
Interest income on money market placement 7,500 1,600
Dividend income from domestic corporation 5,700 -
Dividend income from foreign corporation 6,800 2,000
Royalty income 90,000 50,000
Winnings/prizes from lotteries, raffle draws 45,000 16,900
Prizes from singing contest 5,600 -
PCSO/lotto winnings 150,000 50,000
Royalty income from sale of books 68,000 -
Additional Data:
In February, the taxpayer bought a parcel of land deemed as capital asset. The acquisition cost was
₱840,000. He later sold the lot in December for 1,060,000.
In September, the taxpayer sold his 560 shares of stock of Ayala Investment Corp. held by him as capital
asset, thru local stock exchange. The cost was ₱36,900 whereas the sales price was ₱154,000.
In October. The Taxpayer sold for ₱820,000 his house and lot located in Makati, help as capital asset
(not his principal residence). The Fair Market Value on the date of sale was ₱950,000 and the acquisition
cost was ₱475,000.
Requirement:
Determine the following if Mr. Khristian is (a)RC, (b) NRC, (c)RA, (d)NRAETB, and (e)NRANETB:
Taxable income
Income tax payable
Final Tax on passive income
Capital Gains Tax
Business tax (if applicable)
COMPUTATION ON CAPITAL GAINS TAX (CGT)
Assume the following data:
Selling Price of the Building no.1 ₱15,000,000
Selling Price of the Building no.2 20,000,000
Cost of building no.1 10,000,000
Cost of building no.2 30,000,000
Expense on sale of building no.1 200,000
Expense on sale of building no.2 300,000
FMV building no.1 12,000,000
FMV building no.2 8,000,000
Required:
1. CGT on building no.1
2. CGT on building no.2
3. CGT on building no.2 assuming the building is situated abroad.
COMPUTATION ON De Minimis (CGT)
Lesther Minglana, Accounting Manager of Miranda Corporation, provided the following data
for 2025 taxable year:
Salaries @120,000 per month ₱1,440,000
Rice Allowance at 3,000 a month 36,000
Christmas gift/Bonus 30,000
13th month pay and midyear bonus 240,000
Productivity incentive pay covered by a CBA 25,000
Monetized unused vacation leave for 12 days 66,000
Monetized unused sick leave for 5days 27,500
Medical cash allowance to dependents 3,000
Actual medical benefits 10,000
Annual uniform and clothing allowance given during the company anniversary on June 7,000
2025
10-year service incentives award given during the company anniversary on June 2025 10,000
(in form of cash)
Creditable withholding tax on compensation 397,150
Required:
How much is the Exempt de Minimis benefits?
How much is the amount of 3th month pay and other benefits subject to basic tax?
How much is the income tax payable of Lesther for the year 2025?