Individual Taxpayers
Definition:
Individual Taxpayers are natural persons with income derived from within the territorial jurisdiction
of a taxing authority.
Definition:
Partnership has a juridical personality separate and distinct from
that of each of the partners.
Definition:
Calendar year means accounting period of twelve (12) months ending on
the last day of December
Definition:
Dealings in property refer to the disposal of assests
either through sale or exchange.
Definition:
Gross income (also known as gross taxable income) means total income of a
tax payer subjected to tax.
Resident citizen of the Philippines:
A Filipino citizen taxpayer not classified as nonresident citizen is considered a resident citizen tax
tax purposes
Kinds of Partnership for tax purposes:
1. General Professional Partnership (GPP)
2.
General Partnership
Essentials of an acceptable accounting method:
There should be distinction between revenue
and capital expenditures.
Rules in the recognition of capital gains and losses:
The transaction must involve property
classified as capital asset
Definition:
Income means all wealth flows into the taxpayer,
other than the return of capital.
Alien:
An alien is foreign-born person who is not qualified to acquire Philippine citizenship by
birth or after birth.
Allowable deductions to the Partnership comprising GPP:
The share of a partner in the net income of a GPP, actually or constructively received, shall be reported as taxable income of
each partner.
Kinds or methods of accounting:
Cash basis: Income reported in the year it is collected
, actually or constructively.
Holding period:
The entire amount of capital gain and losses incurred by corporations shall be recognized regardless of the
holding period.
The doctrine of Constructive Receipt:
The right to receive must be unconditional, valid and
enforceable