Homework Help is Here – Start Your Trial Now!
Business
Accounting
300,000 500,000 300,000

300,000 500,000 300,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Determine the final tax on passive income.

(PHILIPPINES)

An individual (Resident citizen) earning compensation and business income provided the following income (within the Philippines unless otherwise stated) for the year: Basic salary (Net of withholding tax) 400,000 Withholding tax on salary 30,000 Director's fee 300,000 Business income Rental income (gross of 15,000 expanded withholding tax) 500,000 300,000 Business expenses 150,000 Cash dividend from domestic corporation 90,000 Stock dividend from a domestic corporation 50,000 Cash dividend from resident foreign corporation 70,000 Interest from savings deposit 30,000 Royalty income in general 40,000 Prizes from contest won 5,000 PCSO winnings 8,000 13th month pay 50,000 Christmas bonus 22,000 Mid-year bonus 16,000 Compensation on damages from injuries and sickness 100,000 Proceeds from life insurance coverage of his deceased father 250,000 Vacation and sick leave pay 50,000 Proceeds from his life insurance (70,000 represents his total contribution) 150,000 Unused monetized vacation leave in excess of 10 days allowed de minimis 15,000 benefit Bad debt recovery (From a previous write-off with a net income of 10,000 before write-off) 70,000 Local tax refund 20,000 Prizes received from a charitable activity 15,000 Properties received by gratuitous transfer (income from property, 8,000) 20,000 Determine the final tax on passive income.
Transcribed Image Text:An individual (Resident citizen) earning compensation and business income provided the following income (within the Philippines unless otherwise stated) for the year: Basic salary (Net of withholding tax) 400,000 Withholding tax on salary 30,000 Director's fee 300,000 Business income Rental income (gross of 15,000 expanded withholding tax) 500,000 300,000 Business expenses 150,000 Cash dividend from domestic corporation 90,000 Stock dividend from a domestic corporation 50,000 Cash dividend from resident foreign corporation 70,000 Interest from savings deposit 30,000 Royalty income in general 40,000 Prizes from contest won 5,000 PCSO winnings 8,000 13th month pay 50,000 Christmas bonus 22,000 Mid-year bonus 16,000 Compensation on damages from injuries and sickness 100,000 Proceeds from life insurance coverage of his deceased father 250,000 Vacation and sick leave pay 50,000 Proceeds from his life insurance (70,000 represents his total contribution) 150,000 Unused monetized vacation leave in excess of 10 days allowed de minimis 15,000 benefit Bad debt recovery (From a previous write-off with a net income of 10,000 before write-off) 70,000 Local tax refund 20,000 Prizes received from a charitable activity 15,000 Properties received by gratuitous transfer (income from property, 8,000) 20,000 Determine the final tax on passive income.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Non Resident Aliens and Foreign Corporations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS