Tax on Individuals

Question 1

What income is subject to tax for the following individuals
RC
NRC
RA
NRAETB
NRANETB

Answer 1

RC=Worldwide Income
NRC=Income within Ph
RA=Income within Ph
NRAETB=Income within Ph
NRANETB=Income within Ph

Question 2

What are the tax rates for the following individuals?
RC
NRC
RA
NRAETB
NRANETB

Answer 2

RC=Regular/Basic Tax
NRC=Regular/Basic Tax
RA=Regular/Basic Tax
NRAETB=Regular/Basic Tax
NRANETB=25% Final Tax

Question 2

What is the tax basis for the following individuals
RC
NRC
RA
NRAETB
NRANETB

Answer 2

RC=Net Taxable Income
NRC=Net Taxable Income
RA=Net Taxable Income
NRAETB=Net Taxable Income
NRANETB=Gross Income

Question 2

What is the income tax table under the TRAIN laws (2018-2022)

Answer 2

250k below = No Tax
250-400k = 20% of the excess above 250k
400-800k = 30k + 25% of the excess above 400k
800-2m = 130k + 30% of the excess above 800k
2-8m = 490k + 32% of the excess above 2m
8m+ = 2.41m + 35% of the excess above 8m

Question 2

What is the tax treatment of Mixed Business Income

Answer 2

You tax it the same way for each type, and just add it in total
the only difference is that in business income
For %
If you opt for Graduated then you add both the NTI for compensation and business, then perform the tax table
then add 3% of gross sales

If you opt for 8% then the tax due is 8% of gross sales and other income but no more minus 250k, and then you add that to tax due for Compensation and thats ur answer

Question 2

What is the income tax table under the TRAIN laws (2023)

Answer 2

250k below = No Tax
250-400k = 15% of the excess above 250k
400-800k = 22.5k + 20% of the excess above 400k
800-2m = 102.5k + 25% of the excess above 800k
2-8m = 402.5k + 30% of the excess above 2m
8m+ = 2,202,500m + 35% of the excess above 8m

Question 2

An individual’s income can be classified into?

Answer 2

Pure Compensation = Graduated Rate
Pure Business (A lot of branches)
Mixed Income

Question 2

What is the tax treatment of Pure Business Income

Answer 2

Business income is split into
Vat and %, the former only applying if you made more than 3 million and VAT is taxed ONLY with graduated rates

% is split once again into 2 branches, you can choose:
Graduated rates of NTI + 3% of Gross sales/receipts
or
8% of your gross sales/reciepts and other income - 250k

Question 2

What are the available tax credits for an individual Taxpayer?

Answer 2

Creditable Withholding Tax
Advance Tax Payments
Quarterly Tax Payments (consolidation thing)
Foreign Tax Payments