Compute the income tax payable, if any for taxable year 2021. YOU are engaged in the merchandising business and at the same time employed by PA-MINE Corp. as an Accountant for the TY 2021. In compliance with the existing rules in doing business, you applied for your TIN where your home BIR RDO (select the BIR which has jurisdiction over the place of your residence) assigned you Taxpayer Identification No. 123-456-789-0000. Additional information: You chose graduated tax rate You opted for itemized deduction Your financial records showed the following: Gross Sales – Php 4,000,000 Cost of Sales – Php 2,000,000 Expenses – Salaries and wages of staff – Php 360,000 Depreciation of car used in delivery – Php 100,000 Representation expense – Php 10,000 Office Rent expense – Php 360,000 Rent expense on your condominium – Php – 240,000 Utilities in office – Php 120,000 Electricity expenses in condominium – Php 60,000 Registration fees of delivery car and other taxes – Php 5,000 Gas and oil – Php 120,000 Registration fees of personal car and other taxes – Php 5,000 Gas and oil of personal – Php 120,000 4. Your clients are Top Withholding Agents and thus withheld 1% on their purchases from you and given you Form 2307: 1st quarter 2307 – Php 10,000 2nd quarter 2307 – Php 10,000 3rd quarter 2307 – Php 10,000 4th quarter 2307 – Php 10,000 5. PA-MINE Corp. reported your gross compensation income for the year in the amount of Php 600,000.00 6. The non-taxable compensation is composed of the following 13th month pay – Php 50,000 Other benefits – Php 30,000 SSS, Philhealth, Pagibig – Php 20,000 De minimis benefits of Php – 10,000 7. PA-MINE Corp. withheld tax on your compensation in the amount of Php 20,000 Disregard the penalty, if any.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter9: Individuals As Taxpayers

Section: Chapter Questions

Problem 16P

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Compute the income tax payable, if any for taxable year 2021. YOU are engaged in the merchandising business and at the same time employed by PA-MINE Corp. as an Accountant for the TY 2021. In compliance with the existing rules in doing business, you applied for your TIN where your home BIR RDO (select the BIR which has jurisdiction over the place of your residence) assigned you Taxpayer Identification No. 123-456-789-0000. Additional information: You chose graduated tax rate You opted for itemized deduction Your financial records showed the following: Gross Sales – Php 4,000,000 Cost of Sales – Php 2,000,000 Expenses – Salaries and wages of staff – Php 360,000 Depreciation of car used in delivery – Php 100,000 Representation expense – Php 10,000 Office Rent expense – Php 360,000 Rent expense on your condominium – Php – 240,000 Utilities in office – Php 120,000 Electricity expenses in condominium – Php 60,000 Registration fees of delivery car and other taxes – Php 5,000 Gas and oil – Php 120,000 Registration fees of personal car and other taxes – Php 5,000 Gas and oil of personal – Php 120,000 4. Your clients are Top Withholding Agents and thus withheld 1% on their purchases from you and given you Form 2307: 1st quarter 2307 – Php 10,000 2nd quarter 2307 – Php 10,000 3rd quarter 2307 – Php 10,000 4th quarter 2307 – Php 10,000 5. PA-MINE Corp. reported your gross compensation income for the year in the amount of Php 600,000.00 6. The non-taxable compensation is composed of the following 13th month pay – Php 50,000 Other benefits – Php 30,000 SSS, Philhealth, Pagibig – Php 20,000 De minimis benefits of Php – 10,000 7. PA-MINE Corp. withheld tax on your compensation in the amount of Php 20,000 Disregard the penalty, if any.

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