TAXATION Flashcards
refers to any person for who an individual performs any
service of whatever nature as employee for such person.
It is the person who has control over the payment of the
employee renumeration.
Employer
refers to any individual who is a recipient of wages and
includes officers or elected official of the Government of the
Philippines or any political subdivisions, agency or instrumentality
thereof.
Employee
What are the elements of employer and employee
- Selection and engagement of employees
- Payment of wages
- Power of dismissal
- Power of control
What are the types of employees?
As to Functions
1. Managerial
2. Supervisory
3. Rank and file
As to Functions
1. Minimum wage earner
2. Regular Employees
generally includes all renumerations
received under an employee-employer relationship
Gross Compensation Income
includes employees contributions to GSIS,
SSS, Philhealth, HDMF and union dues.
Non-Taxable Compensation
What is the De Minimis Benefit for Monetized Unused Vacation Leave Credits?
(Monetized Unused VL)
The amount not exceeding 10 days
What is the De Minimis Benefit for Monetized Vacation and Sick leave credits?
(Monetized Unused SL)
0
What is the De Minimis Benefit for Medical Cash allowance?
P3,000 per annum (1,500 per semester)
What is the de Minimis Benefit for Rice Subsidy?
P24,000
What is the de Minimis Benefit for Uniform and clothing allowance?
P6,000
What is the de Minimis Benefit for Medical assistance
P10,000
What is the de Minimis Benefit for laundry allowance?
P3,600
What is the de Minimis Benefit for Employee Achievement Award?
P10,000
What is the de Minimis Benefit for gift during Christmas and anniversaries?
P5,000
What is the de Minimis Benefit for Meals?
0
What is the de Minimis Benefit for collective bargaining agreement (CBA) and productivity incentive scheme in the taxable year?
P10,000
treated as other compensation income under the
category of 13th month pay and other benefits
This is contractual
Rank and File
taxed as fringed benefits
Managerial and Supervisory
fixed renumerations received
Regular Compensation
for other performance based pay
Supplemental Compensation
includes other compensation received not classified as regular or supplemental compensation is exempt if not exceeding P90,000.
The 13th month pay and other benefits
What are the requisites of regular Compensation?
- Basic Salary
- Fixed Allowances, like clothing allowance, fixed housing allowance,
representation, transportation and other allowances.
What are the exemption of taxability of allowances?
a. Ordinary and necessary allowance for travelling, representation or
entertainment expense relative to the discharge of his function
b. Expense subject to accounting or liquidation
C. Any excess advances returned to the employer
- form of sales tax
- it is tax on consumption levied on the sale,
barter, exchange or lease of goods or
properties and services. - indirect tax, be shifted or passed on to the
buyer, transferee, or lessee of goods,
properties or services.
Value Added Tax (VAT)
Who are qualified in filing of VAT returns?
- person or business with aggregate amount of
actual gross sales or receipt exceeds 3
million. - a person who imports goods
What are the Value Added tax rates?
- 12%
- Exempt
- 0 rated
- It occurs from the purchase of goods and services
- means the vat due on or paid by VATregistered on importation of goods or local
purchase of goods, properties, or services,
including lease or use of property in the
course of his trade or business.
Input VAT
- means the VAT due on the sale, lease, or
exchange of taxable goods or properties or
services.
It occurs from the sale of goods or services:
Output VAT
What is the proforma for input VAT?
Debit. Credit
Merchandise inventories
INPUT VAT
Cash
To record purchase of inventories
(Debit merchandise inventory, INPUT VAT, and credit Cash)
What is the proforma for Output VAT?
Debit. Credit
Cash
OUTPUT VAT
Sales
To record sale of goods
(Debit cash, credit output vat and sales)
What is the formula for input and output VAT?
Cash x 100/112
