1.
LJ, married, left the Philippines in the middle of the year on July 1, 2021 to go abroad
and work for 5 years. The following data were provided as of December 31, 2021:
LJ’s taxable net income (TNI) should be:
a. 800,000
b. 950,000
c. 1,100,000
d. 600,000
LJ’s taxable net income (TNI) should be:
a. 800,000 (300,000+200,000-100,000-50,000+600,000-150,000=800,000)
2. Mike received the following income during 2021 taxable year:
How much is the taxable net income of Mike assuming he is a
Gross income, Philippines RC NRC RA NRA ETB NRA
NETB
Gross income, Canada 3,865,0 3,865,0 3,865,0 3,865,0 3,850,00
00 00 00 00 0
Business expenses, Philippines 1,650,0 - - - -
00
Business expenses, Canada 2,000,0 2,000,0 2,000,0 2,000,0 -
00 00 00 00
Interest on bank deposit, 725,000 - - - -
Metrobank Taguig
Capital gain on sale of shares of - - - - -
closely held domestic corporation
TAXABLE NET INCOME 2,775,0 1,850,0 1,850,0 1,850,0 3,850,0
00 00 00 00 00
How much is the INCOME TAX DUE of Mike assuming he is a
RC NRC RA NRA NRA
ETB NETB
INCOME TAX DUE 2,775,00 1,850,0 1,850,0 1,850,0 3,850,00
0 00 00 00 0
(2,000,00 (800,00 (800,00 (800,00 25%
0) 0) 0) 0) 962,500
775,000 1,050,0 1,050,0 1,050,0
32% 00 00 00
248,000 30% 30% 30%
490,000 315,000 315,000 315,000
738,000 130,000 130,000 130,000
445,00 445,00 445,00
0 0 0
FWT IN PASSIVE INCOME
RC(20%) NRC NRA ETB NRA NETB
(20%) (20%) (25%)
1. Inter Interest, peso 20k 20k 20k 25k
deposit, MBTC est, peso
deposit, MBTC
2. Interest, $ deposit, BDO 63k - - -
($10,000 x P42) (15%)
3. Interest, deposit in - - - -
HongKong (HK$10,000 x
P5)
4. Prize (TV) won in a local 10k 10k 10k (20%) 12.5k (25%)
lottery (20%) (20%)
5. PCSO winnings 400k 400k 400k (20%) 500k (25%)
(20%) (20%)
6. Prize won in contest in - - - -
U.S.
7. Lotto winning in U.S. - - - -
8. Dividend, domestic 60k 60k 120k (20%) 150k (25%)
company (10%) (10%)
TOTAL 553k 490k 550k 687k
CAPITAL GAINS TAX
Not Listed and Traded
140,000
(80,000)
60,000
15%
9,000
Vincent sold a residential house and lot for P10,000,000 to his friend. Its FMV when he
inherited it from his father was P12,000,000 although its present FMV is P15,000,000.
The tax on the above transaction is:
a. P720,000 capital gains tax
b. P900,000 capital gains tax
c. 6% donor’s tax
d. 12% value added tax
Answer:
b. P900,000 capital gains tax
P 15M x 6% = P900,000
*The insufficient consideration P5M (P15M FMV – P10M SP) does not constitute a
donation because the property sold is NOT A CAPITAL ASSET.
Assume the house and lot was Vincent’s principal residence and he used ½ of the
proceeds to buy a new principal residence within eighteen (18) months after the above
sale. Assume further that Vincent properly informed the BIR about the sale. It shall be:
a. Exempt from capital gains tax
b. Subject to P300,000 capital gains tax
c. Subject to P450,000 capital gains tax
d. Subject to P600, capital gains tax
Subject to P450,000 capital gains tax
=(P5,000,000/P10,000,000) X P15,000,000
=P7,500,000 X 6%
=P450,000
FRINGE BENEFITS
During 2021, Alpha Corporation gave the following fringe benefits to its employees:
1. How much is the fringe benefits tax?
Fringe benefits to 170,000
managerial 65%
261,538
35%
91,538
2. How much is the allowable deduction of Alpha Corporation?
De minimis benefits to rank and file 54,000
De minimis to managerial 27,200
Fringe benefits to rank and file 102,000
Fringe benefits to managerial 170,000
Fringe Benefit Tax 91,538
TOTAL 445,138
De Minimis Benefits
Anita, accounting manager of SMA corporation, provided the following data for taxable
year:
1. How much is the amount of exempt de minimis benefits?
RICE ALLOWANCE 24K (2,000 X 12MONTHS)
XMAS GIFT/BONUS 5K
VACATION LEAVE 55K (66K/12 DAYS X 2DAYS – 66K)
MEDICAL CASH ALLOWANCE 3K
ACTUAL MEDICAL BENEFIT 10K
TOTAL 97K
2. How much is the amount of de minimis and other benefits subject to basic tax?
Amount Exempt total
RICE ALLOWANCE 36K 24K 12K
XMAS GIFT 30K 5K 25K
13TH MONTH PAY 240K 90K 150K
INCENTIVE PAY 25K - 25K
VACATION LEAVE 66K 55K 11K
SICK LEAVE 27K - 27K
MEDICAL CASH 3K 3K -
ALLO.
ACTUAL MEDICAL 10K 10K -
BE.
TOTAL 250,500
3. How much is the fringe benefits tax?
MV 60,000
65%
92,308
35%
32,308
4. How much is the income tax payable of Juan for the year?
1,440,000
250,500
1,690,500
(800,000)
890,500
30%
267,150
130,000
397,150