The business is not vat-registered. Determine the income tax due assuming Kagura opted to be taxed using 8% preferential income tax.

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter25: Taxation Of International Transact Ions
Section: Chapter Questions
Problem 29P
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Kagura is a resident citizen, earning purely business income for the taxable year:
Gross sales
P2,800,000
Cost of sales
1,200,000
Operating expenses 650,000
The business is not vat-registered.
Determine the income tax due assuming Kagura opted to be taxed using 8% preferential income tax.
Determine the business tax due under Section 116 (Train law-3% percentage tax; 12% VAT)?
Determine the income tax due.
Transcribed Image Text:show solution thank you asap Kagura is a resident citizen, earning purely business income for the taxable year: Gross sales P2,800,000 Cost of sales 1,200,000 Operating expenses 650,000 The business is not vat-registered. Determine the income tax due assuming Kagura opted to be taxed using 8% preferential income tax. Determine the business tax due under Section 116 (Train law-3% percentage tax; 12% VAT)? Determine the income tax due.
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