Chapter 2 Flashcards
are natural persons with income derived from within the territorial jurisdiction of taxing authority.
Individual Taxpayers
A citizen of the Philippines who:
- Establishes to the satisfaction of the Commissioner the fact of his physical presence abroad with a definite intention to reside therein.
- Leaves the Philippines during the taxable year to reside abroad.
- Works and derive income from abroad and his employment requires him to be physically present abroad most of the time (at least 183 days) during the taxable year.
- Have been previously considered as non-resident citizen and who arrives in the Philippines at any time during taxable year to reside permanently.
NON-RESIDENT CITIZEN
Filipino citizens who are physically present in a foreign country as a consequence of their employment.
Their salaries and wages are paid by an employer abroad.
OVERSEAS CONTRACT WORKER (OCW)/OVERSEAS FILIPINO WORKER (OFW)
Individual whose residence is within the Philippines and who is not a citizen thereof.
RESIDENT ALIEN
Individual whose residence is not within the Philippines and who is not a citizen thereof.
NON-RESIDENT ALIEN
- Alien is carrying on a business in the Philippines.
- Has stayed in the Philippines for more than 180 days
NON-RESIDENT ALIEN ENGAGE IN TRADE OR BUSINESS
non-resident alien that has stayed in the Philippines for 180 days or less
NON-RESIDENT ALIEN NOT ENGAGE IN TRADE OR BUSINESS
refers to income such as compensation income, business income, and income from
practice of profession
Ordinary or regular income (GRADUATED RATE)
subject to final withholding taxes are certain passive incomes from sources within the Philippines such as:
- Interest income
- Dividend Income
- Royalties
- Prizes
- Other winnings
Passive income (FINAL WITHHOLDING TAX)
A Filipino citizen who permanently resides in the Philippines
RESIDENT CITIZEN
is defined as a sole proprietor or an independent contractor who reports income earned from self employment.
Self Employed
is a “person formally certified by a professional body belonging to a specific profession”
Professional
An individual taxpayer is considered ________ if s/he is deriving income fom both from self-employment and compensation (arrising from employer-employee relationship)
Mixed income earner
The following are ______ assets:
- Stock in trade of the taxpayer or other property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of taxable year.
- Property used in trade or business subject to depreciation
- Real property held by the taxpayer primarily for sale to customers in the ordinary course of trade or business.
- Real property used in trade or business of the taxpayer.
Ordinary Assets
assets include all the property held by the taxpayer (whether or not connected with his trade or business) not included in the definition of ordinary assets.
Capital Assets
