1. Rodel, married, with two dependent children, had the following income and expenses in 2020.
Salary P162,000.00
13th month pay 5,000.00
Gross receipts from profession 90,000.00
Rent income 60,000.00
Gross receipts from business 125,000.00
Professional and business expenses 56,500.00
Compute for the income tax pay of Rodel if he opted for the graduated income tax rate and if he
a. Availed of the itemized deductions.
Correct Answer: B
Salary (P155,000 + 5,000)
P160,000
Professional income (88,200 = 1,800) P90,000
Rent income (P57,000 / 95%) 60,000
Business Income 125,000
275,000
Total income
435,000
Less: Expenses
56,500
Taxable income
378,500
On P250,000 Exempt
128,500 x 20%
P25,700
Income tax due
25,700
Less: Withholding taxes on-
Salary P5,000
Professional income 1,800
Rent 3,000
9,800
Income tax payable
15,900
Salary (P155,000 + 5,000)
P160,000
Professional income (88,200 = 1,800) P90,000
Rent income (P57,000 / 95%) 60,000
Business Income 125,000
275,000
Total income
435,000
Less: Expenses
56,500
Taxable income
378,500
On P250,000 Exempt
128,500 x 20%
P25,700
Income tax due
25,700
Less: Withholding taxes on-
Salary P5,000
Professional income 1,800
Rent 3,000
9,800
Income tax payable
15,900
Salary P162,000.00
Professional Income 90,000.00
Rent Income 60,000.00
Business Income 125,000.00
Total Income 437,000.00
Less: Expenses 56,500.00
Taxable Income 380,500.00
On 250,000 Exempt
130,500 x 20% 26,100
Income tax pay 26,100
b. Availed of the optional deductions.
Compensation Income P162,000.00
Professional Income 90,000.00
Rent Income 60,000.00
Business Income 125,000.00
Total 275,000.00
Less:OSD(275,000 x 40%) 110,000.00 P165,000.00
Taxable Income 327,000
On 250,000 Exempt
77,000 x 20% 15,400
Income tax Payable 15,400
2. Mulry had the following data from his employment:
Monthly salary P50,000.00
Annual Pag-ibig contributions 1,200.00
Monthly Philhealth contribution 800.00
Monthly SSS premium 1,300.00
13th month pay 50,000.00
Mid-year bonus 50,000.00
Compute for the taxable income and tax payable of Mulry.
Basic Salary 600,000
Less: Annual PAG-IBIG Contribution 1,200
Annual Philhealth Contribution 9,600
Annual SSS Premium 15,600
Taxable Income 573,600
On first 250,000 Exempt
On first 400,000 30,000
173,600 x 25% 43,400
Tax Payable 73,400
3. Items 3 – 5 are based on the following information:
Sharon received the following income in 2020:
Business income, Philippines P5,800,000
Business income, United States 4,500,000
Expenses, Philippines 2,500,000
Expenses, United States 2,100,000
Interest on deposit, Metrobank 15,000
Interest on deposit in US 8,000
Cash prize won in a local contest 50,000
Cash prize won in a contest in US 70,000
Dividends from SMC, a domestic company 35,000
3. Compute for the taxable income and the income tax due if Sharon is a resident citizen.
Business income, Philippines P5,800,000
Less: Expenses, Philippines 2,500,000 3,300,000
Business income, United States 4,500,000
Expenses, United States 2,100,000 2,400,000
Interest on deposit in US 8,000
Cash prize won in a local contest 50,000
Cash prize won in a contest in US 70,000
Taxable Income 5,828,000
On 2,000,000 490,000
3,828,000 x 32% 1,224,960
Income Tax Due 1,714,960
4. Compute for the taxable income and the income tax due if Sharon is a non-resident alien ETB.
Business income, Philippines P5,800,000
Less: Expenses, Philippines 2,500,000 3,300,000
Cash prize won in a local contest 50,000
Total Taxable Income 3,350,000
On 2,000,000 490,000
1,350,000 x 32% 432,000
Income Tax Due 922,000
5. Compute for the taxable income and the income tax due if Sharon is a non-resident alien
NETB.
Business income, Philippines P5,800,000
Interest on deposit, Metrobank 15,000
Cash prize won in a local contest 50,000
Dividends from SMC, a domestic company 35,000
Taxable Income 5,900,000
Tax Rate 25%
Income Tax Due (Final Tax) 1,475,000
