KERING - KERI!
TRUE or FALSE
The income earner is responsible to file a tax return or pay any applicable tax under the general principles of Basic Tax.
TRUE!
According to the general principle of Basic Tax, the payee (income earner) has the responsibility to file the return and pay the applicable tax.
This is the expenses incurred by a taxpayer in connection with the conduct of his trade.
A. Representation Expenses
B. Repair Expenses
C. Entertainment, amusement, & Recreation Expenses
A. Representation Expenses
This refers to all included income not subject to final withholding tax and not considered exempt under the law.
A. Taxable Income
B. Gross Income
C. Net Income
B. Gross Income
This may either be treated as capital expenditure or a revenue expenditure.
A. Revenue
B. Investment
C. Expense
C. Expense
This refer to the grossed up monetary value of fringe benefit furnished or granted by the employer to the employee is deductible provided that the final tax has already been paid.
A. Fringe Benefit
B. Compensation Payments
C. Revenue Expenditure
A. Fride Benefit
Under taxation of NRA-NETB, it is said that all income aside intereset income from foreign currency deposit unit that is received by NRA-NETB is subjected to how many percent (%) of final Withholding Tax ??
25%
What are the two classification of business expenses according to the sim?
Itemized expenses and Optional Standard
What is the legal term for an arrangement where someone transfers property to another person, to be managed by a third party?
Answer: TRUST
Is the property owner who establishes the trust.
GRANTOR
What is the basic requirement in the filing of income tax return of married individuals?
Answer: CONSOLIDATED INCOME TAX RETURN
If the spouses are only physically separated and there is no legal separation, they are not at all required by law to file consolidated or joint returns for which they are considered as jointly and severally liable to tax.
FALSE yarn :(
What is the formula for basic tax income?
Basic Income Tax Formula:
Gross Income
- (Less) Allowable Deductions
Taxable Income x Rate (Train law table)
= Basic Income Tax
This pertains to properties, rights as well as obligations of a decedent that are not extinguished by his death, that which is the subject matter of succession.
ESTATE
CONGRATULATIONS DISNEY PRINCESS!!! YOU GOT A BONUS SCORE!
CONGRATULATIONS DISNEY PRINCESS!!! YOU GOT A BONUS SCORE!
What are the three government regulatory premiums?
SSS Contribution Premium
PAG-IBIG Contribution Premium
PHIL-HEALTH Contribution Premium
What is the basic requirement in the filing of income tax return of married individuals?
CONSOLIDATED INCOME TAX RETURN
_______ __________ is a legal arrangement where a person transfers ownership of their assets to a trust, managed by a trustee, for the benefit of designated beneficiaries.
It's key characteristic is that once it is created, it generally cannot be modified or terminated by the grantor without the consent of the beneficiaries.
IRREVOCABLE TRUST
According to RR________, MWE receiving additional compensation such as commissions, honoraria, fringe benefits, benefits in excess of the allowable statutory amount of P90,000, taxable allowances and other taxable income other than the statutory pays shall not enjoy the privilege of being a MWE and his/her entire earnings are not exempt from income tax.
RR 10-2008
John and Jane, a married couple filing jointly, had a combined gross income of P800,000 in 2024. They are entitled to a personal exemption of P25,000 each. Additionally, they have qualified deductions of P128,000. They also made the following contributions in 2024:
HOW MUCH IS THE TOTAL ALLOWABLE DEDUCTION OF JOHN AND JANE??
Personal Exemption:
John 25,000
Jane 25,000
Other Deduction: 128,000
PhilHealth contribution: P9,600
Pag-IBIG contribution: P5,300
Social Security System contribution: P18,500
Total Allowable Deduction: PHP 211,400.00
This list falls under what income tax return bracket?
1. Concurrent employment during the year
2. Successive employment during the year.
3. Receipt of income distribution from a general professional partnership, taxable trusts or taxable estates, exempt co-ownership or exempt joint ventures.
4. Taxpayers with both employment income and business income.
Any of the following:
CONSOLIDATED INCOME TAX RETURNS
ANNUAL INCOME TAX RETURNS
ADJUSTMENT INCOME TAX RETURNS
Maria, a single individual, earned a gross income of P350,000 in 2024. She is entitled to a personal exemption of P50,000. Calculate her basic income tax due.
Note: Based on the 2024 TRAIN law tax table:
Solution:
Taxable Income:
Gross Income: P350,000
Less: Allowable Deductions
(Personal Exemption): P50,000
Taxable Income: = P300,000
Tax Computation
Based on the 2024 TRAIN law tax table:
Tax on remaining P50,000: P50,000 * 20%
Basic Income Tax Due: P0 + P10,000 = P10,000
Employees who earn minimum wage are exempted from income. Innumerate the other four (4) pays exempted to tax.
Night shift differential
Minimum wage
Hazard pay
Overtime pay
Holiday pay
Jose Marie Chan, single, has a total gross income of P500,000 in year end 2024. Mr. Chan is also entitled to a personal exemption of P75,000. Additionally, He has qualified deductions amounting to P100,000. Mr. Jose Marie Chan also made the following contributions in 2024:
Calculate their basic income tax due based on the 2024 Train law tax table for single individuals.
Note: The first P250,000 of taxable income is taxed at 0%. While the excess over P250,000 is taxed at 20%.
Taxable Income
Gross Income: P500,000
Less: Allowable Deductions:
Total Deductions = P194,200.00
Taxable Income: =P305,800.00
Tax Computation:
Based on the 2024 TRAIN law tax table for single individuals filing:
Solution:
P 55,800.00 * 20%
Basic Income Tax Due= P 11,160.00
Maya and Sir Chief, married couple, had a combined gross income of P800,000 in 2024. They are entitled to a personal exemption of P25,000 each. Additionally, they have qualified deductions of P128,000. They also made the following contributions in 2024:
HOW MUCH IS THE TOTAL TAXABLE INCOME OF MAYA AND SIR CHIEF?
Combine Gross Income: 800,000
Personal Exemption:
John 25,000
Jane 25,000
Other Deduction: 128,000
PhilHealth contribution: P9,600
Pag-IBIG contribution: P5,300
Social Security System contribution: P18,500
Total Allowable Deduction: PHP 211,400.00
TOTAL GROSS INCOME: PHP 800,000.00
(Less) Total A.D.: PHP 211,400.00
__________________________________
TOTAL TAXABLE INCOME: PHP 588,600.00
Based on the 2024 TRAIN law tax table for married individuals filing jointly, the first P400,000 of taxable income is taxed at 0% while the excess is taxed at 25%.
Assuming that Alice and Quibs, married, has a total taxable income after deductions amounting to PHP 680,000.00. How much is their basic income tax due?
Solution:
PHP 680,000 – PHP 400,000 = PHP 280,000
PHP 280,000 * 25% = PHP 70,000
BASIC INCOME TAX DUE - PHP 70,000.00