In 2020, Ms. Montibon owns a grocery store with gross receipts of P1,375,000. Her cost of sales and operating expenses are P600,000 and P400,000, respectively, and with non-operating income of P100,000.1. What business tax is due to her?2. How much is the income tax due to her?3. How much tax due if she availed the OSD?
In 2020, Ms. Montibon owns a grocery store with gross receipts of P1,375,000. Her cost of sales and operating expenses are P600,000 and P400,000, respectively, and with non-operating income of P100,000.1. What business tax is due to her?2. How much is the income tax due to her?3. How much tax due if she availed the OSD?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
In 2020, Ms. Montibon owns a grocery store with gross receipts of P1,375,000. Her cost of sales and operating expenses are P600,000 and P400,000, respectively, and with non-operating income of P100,000.
1. What business tax is due to her?
2. How much is the income tax due to her?
3. How much tax due if she availed the OSD?
Expert Solution
Provision
- VAT rate (Business Tax) in Philippines currently stands at 12% and is chargeable on Gross Selling Price on Goods and Services.
- Income Tax can be paid either at Graduated Tax slabs on Net Taxable Income
- A maximum of 40% of their gross sales or gross receipts shall be allowed as deduction, instead of itemized deduction
Slab rate to compute income tax due are as follows
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