MODULE 3 LESSON 1-2 Flashcards
the corporate tax in the country is , which is applied to all net incomes from the entire tax table sources
30%
for the highest income bracket
32%
The Philippines taxes its resident citizens on their
worldwide income
is governed chiefly by the Constitution of
the Philippines and three Republic Acts.
taxation in the Philippines
states that “the rule of taxation
shall be uniform and equitable” and that “Congress shall evolve a progressive system of
taxation”.
Article VI, Section 28 of the Constitution
Income of residents in Philippines is taxed progressively up to
32%
This income is taxed at progressive rates on gross income after deduction of personal and additional exemptions but without deductions for expenses
compensation income
This income, including dividends
and interest, is subject to tax at 7.5%
passive income
This income is taxed at progressive rates on net business income after deduction of certain specified expenses.
business income and professional income
both for domestic and resident foreign corporations is 30% based on net taxable income
corporate income tax rate
- is a corporate tax obligation paid by taxpayers engaged in trade or business activities in the Philippines. Employers withhold from the salary of their employees every month and each amount withheld serves as an advanced payment for the employer’s Income Taxes during the business year
withholding tax
of the gross selling price is imposed to all importation, sale, barter, exchange or lease of goods or properties and sale of services.
Value Added Tax (VAT) 12%
’ means the total amount of money or its equivalent that the purchaser pays or
is obligated to pay to the seller in consideration of the sale, barter or exchange of the goods
or properties, excluding the value added tax.
Gross selling price
is based on the taxpayer’s ability to pay. It imposes a lower tax rate
on low-income earners than on those with a higher income. This is usually achieved by
creating tax brackets that group taxpayers by income ranges.
progressive tax
is the rate at which an additional dollar of taxable income would be
taxed. It is part of a progressive tax system, which applies different tax rates to different
levels of income. As income rises, it is taxed at a higher rate (according to the bracket it falls
in).
Marginal tax rate
how to avoid tax refund
ST E P 1 : ESTIMATE NEXT YEAR’ S INCOME
ST E P 2 : ESTIMATE DEDUCTIONS
ST E P 3 : DETERMINE TAX
ST E P 4 : ADJUST WITHHOLDINGS
is an organization that receives deposits, honors checks drawn on those
deposits, and pays interest on them. Banks also make
loans and invest in securities.
bank
helps you protect and
manage your money.
bank account
Banks offer three main types of
accounts:
checking, savings, combination accounts
Banks profit came from
the difference of interest rates
is the amount paid for the use of money
interest
when choosing a bank consider:
The services you want
Bank fees
Atm convenience
Insurance
Online banking
Customer service
Location
is an alternative to a bank. It is a cooperative financial institution that is owned and controlled by the people who use its services. The people who use a credit
union are its members, and they have something in common such as where they work, live, or attend church.
credit union
account is for someone who primarily wants to use checks
to pay bills or everyday expenses. To avoid fees, some banks require a low
minimum balance.
basic checking
account requires a higher balance, and interest is usually
paid monthly. A minimum deposit is typically required to open this type of
account.
interest-bearing
account is for two or more people who are typically in the
same household.
joint checking
is a written order instructing your bank to pay
money to an individual or entity
check
5 Banking Fees that Slowly Killing your Savings
monthly maintenance fees
minimum balance fees
ATM fees
overdraft fees
paper statement fees
allow you to make a
minimum deposit, beginning as low as P100. These types of
plans earn low interest rates, but you can easily withdraw or
deposit funds
basic savings or passbook savings
earn a higher
interest rate than traditional savings accounts, but you must
make a larger minimum deposi—between $1,000 and
$5,000. And, you must keep your money in the CD for a
specified period of time. There is a penalty for early
withdrawal.
Certificates of deposit (CD) accounts
7 Tips to Manage Your Checking Account
- Use automation
- Know your balance
- explore the mobile app
- embrace potential earnings
- avoid fees
- consider consolidating
- decide where to keep extra money
The bank uses the card to verify the
signature on checks that bear your name.
signature cards
parts of a check
issuing bank/drawee
routing/acct no.
payee
check no.
account name/ owner of account
signature of drawer
amount in words
amount in figures
Date
5 banking fees that slowly killing your savings
Monthly maintenance fees
minimum balance fees
ATM fees
paper statement fees
overdraft fees
looks like a credit card. because it is linked to your bank account(s). you can use it to get cas, deposit funds, and check account balances at an automated teller machine (ATM). ATMs are convenient because they are available 24 hours a day at different locations.
Atm card
combines the functions of an ATM card and a check. it can be used luke a check
debit card
allows you to keep your koney in a safe place and earn interest on it.
savings account
Three main types of savings account
-Basic savings or passbook accounts
-certificates of deposit (CD)
-money market accounts
allow you to make a minimum deposit beginning as low as P100. These types of plans earn low interest rates, but you can easily withdraw or deposit funds.
basic savings or passbook accounts
accounts earn a higher interest rate than traditional savings accounts, but you must make a larger minimum deposit—between $1,000 and $5,000. And, you must keep your money in the CD for a specified period of time. There is a penalty for early withdrawal
certificates of deposit
earn a higher interest rate than traditional savings accounts, but you must make a larger minimum deposit. there is also a limit on the number of monthly withdrawals from this type of account
money market accounts
help you keep a current record of your savings account
passbook
Most common checking options
- Basic checking account
- interest-bearing account
- joint checking account
