INCOME TAX: CHAPTER 3 Flashcards
*WHAT ARE THE 3 CLASSIFICATIONS OF TAX PAYERS (Other than Individuals)?**
- Corporation
- General Professional Partnership
- Estates and Trusts
What are the 2 Corporations?
Domestic Corporation
Foreign Corporation
What are the 5 sub of Domestic Corporations? And 2 sub of Foreign Corporations?
Domestic Corporation
- Domestic Corporation, in general, including One Person Corporation
- Government owned and controlled Corporations
- Taxable Partnerships
- Proprietary Educational Institutions
- Non-profit hospitals
Foreign Corporations
- Resident
- Non-resident
Per Republic Act 9856 and Revenue Regulations 13-2011, REIT is a stock corporation established in accordance with the Corporation Code of the Philippines and the rules and regulations promulgated by the SEC, principally for the purpose of owning income- generating real estate assets. For tax purposes, a REIT is considered a taxpayer engaged in the real estate business. Hence, real properties owned by a REIT are considered ordinary assets.
Real Estate Investment Trust (REIT)
_____ means real property which is held for the purpose of generating a regular stream of income such as rentals, toll fees, user’s fees and the like, as may be further defined and identified by the SEC
Income-generating real estate
______ mean shares of stock issued by a REIT or derivatives thereof.
Investor securities
_____ refers to an individual citizen of the Philippines who is working abroad, including one who has retained or reacquired his Philippine citizenship under R. A. 9225
Overseas Filipino investor
______ means a stockholder who is, directly or indirectly, the beneficial owner of more than 10% of any class of investor securities of the REIT combined.
Principal stockholder
______ means a company listed with the Exchange and which, upon and after listing. have at least 1,000 public shareholders each owning at least 50 shares of any class and who, in the aggregate, own at least one-third (1/3) of the outstanding capital stock of the REIT. (Rev. Reg. 3-2020 amending Rev. Reg. 11-2019).
Public company
____ means net income earned for the taxable year, as adjusted for unrealized gains and losses/expenses and impairment losses and other items in accordance with Internationally accepted accounting standards. Distributable income excludes proceeds from the sale of the REIT’s assets that are re-invested in the REIT within 1 year from the date of the sale.
Distributable income
A REIT’s ________ means gross income less all allowable deductions (itemized or optional standard deductions) and the dividends distributed by a REIT out of its distributable income as of the end of the taxable year as: (a) dividends to owners of the common shares, and (b) dividends to owners of the preferred shares pursuant to their rights and limitations specified in the articles of incorporation of the REIT
taxable net income
A REIT shall be taxable on all income derived from sources within and without the Philippines at the applicable income tax rate of 30% as provided under Sec. 27(A) of the NIRC on its taxable net Income as defined in these Regulations. Provided, that in no case shall a REIT be subject to a minimum corporate income tax, as provided under Sec
Income Taxation of REIT
Government owned or controlled Corporations, Agencies or Instrumentalities
The following are Exempt:
- Government Service Insurance System (GSIS)
- Social Security System (SSS)
- Local Water Districts (LWD)
- Philippine Health and Insurance Corporation (PHID)
- Home Development Mutual Fund (HPMF)
Classified PAGCOR’s income into two:
- Income from gaming operations
- Income from other related services
Income from Gaming Operations Include: (4)
- Income from its casino operations
- Income from dollar pit operations
- Income from bingo operations, including all variations thereof
- Income from mobile bingo operations operated by it, with agents on commission basis.
