Unit 4: Income Tax on Individuals

Question 1

What are the four classifications of individuals for income tax purposes? Differentiate each.

Question 2

Where are different types of individuals taxed (tax base), and what rate are they subject to?

Question 3

What are the different sources of income for individual taxpayers? What type of tax are each subjected to?

Question 4

What are the allowable deductions for individual taxpayers?

Question 5

What is the tax treatment for the gain arising from the disposal of a conjugally-owned asset?

Question 6

What are the allowable deductions for individual taxpayers, on the basis of their income source?

Question 7

How do you compute for the IT Due of:
1. An individual earning pure compensation income?
2. An SEP availing of the graduated rates?
3. An SEP availing of the 8% flat rate?
4. A mixed income earner with GS/R and other non-operating income below 3M?
5. a mixed income earner with GS/R and other operating income exceeding 3M?

Question 8

When and who are the entities subject to the 8% flat rate? What is the threshold required, and where is it based on? Are those under the flat rate still subject to VAT? OPT?

What are the other pertinent rules in applying the flat rate?