Module 4 Flashcards
THE 2 DIFFERENT TYPES OF TAXPAYERS
Individuals and Corporation
in common law, is the net worth of a person at any
point in time alive or dead. It is the sum of a person’s assets –
legal rights, interests, and entitlements to property of any kind
– less all liabilities at that time. The issue is of special legal
significance on a question
Estate
is a three-party fiduciary relationship in which the first
party, it transfers (“settles”) a property
(often but not necessarily a sum of money) upon the second
party for the benefit of the third party, the beneficiary
Trust
4 Classification of Individuals
- Resident Citizen
- Non Resident Citizen
- Resident Alien
- Non Resident Alien
a. ETB
b. NETB
A Filipino citizen residing in the Philippines.
Resident Citizen
A Filipino citizen residing in the Philippines.
Resident Citizen
A Filipino citizen residing abroad.
Non-resident Citizen
a person who does not reside in the Philippines and not a citizen.
Non-resident Alien
a person who resides in the Philippines but is not a citizen.
Thereof, the intention is material for the determination.
Resident Alien
An alien who stays in the Philippines for
more than ______ is considered a resident.
1 year
This individual who stays in the Philippines for
more than 1 year is considered a resident.
Resident Alien
Filipinos living abroad but without intention of residing
there permanently
Citizens of the Philippines
Residents of the Philippines [Secs. 23 (A) and 24 (A)]
Citizens of the Philippines
Not Residents of the Philippines [Secs. 23 (B) and 24 (A)] - One
has intention to reside permanently abroad
Citizens of the Philippines
engaged in trade and business in the
Philippines.
Non-resident aliens
engaged in trade or business in the
Philippines.
Non- resident aliens
employed by multinational companies, offshore banking
units, and petroleum contractors and subcontractors.
Aliens
employed by multinational companies, offshore banking
units, and petroleum contractors and subcontractors.
Aliens
Stays for more than 180 days during the taxable
year.
Non-resident Alien – ETB
Stays 180 days at most during the taxable year.
Non-resident Alien – NETB
3 Classification lf Corporations
Domestic Corporations
Foreign Corporations
One Person Corporation
A corporation created and organized under the law of the
Philippines;
Domestic Corporation
2 Types of Domestic Corporation
Stock and Non Stock Corporation
are organized for profit to be enjoyed by stockholders.
Stock Corporation
are organized for purposes other than profit.
Non Stock Corporation
may be formed or organized for charitable, religious or
educational, professional, cultural, fraternal, literary, scientific, social, civic
service, or similar purposes, like trade, industry, agricultural and like chambers,
or any combination thereof.
Non Stock Corporation
