ULYCONSTRUCTION COMPANY
Buhangin, Buhangin DistrictDavao CityProjected Income StatementFor the Year Ending December 31, 2009Income from Rentals Php 600,000.00Less-Projected Operating Expenses:Depreciation of the building:5/12 x2/100 x Php600,000 orPhp 5,000.00Estimated Real property taxesOn land-1 M x 20% x .025 5,000.00On the building =5M x 70% x .025 87,500.00Professional fees 5,000.00Communications 1,000.00Representations 1,000.00Supervision 2,500.00Contingencies 5% of Php 600,000 30,000.00Total project operational expenses Php 137,000.00Net Income before tax Php 463,000.00Personal Exemptions:As Head of the familyPhp 50,000.00With a working wife 50,000.00With two kids at Php 25,000 each 50,000.00 Php 150,000.00Amount Subject to tax Php 313,000.00How tax due is computed:Refer to Income tax table at the back of BIR Form 1701Over Php 250,000 , but not over Php 500,000Tax is computed as followsFirst Php 250,000 Php 50,000.00Excess Php 63,000 x 30% 18,900.00Total tax due Php 68,900.00Less-Inccome tax withheld from Rent5% of Php 600,000 or Php 30,000.00
INCOME TAX PAYABLE ON OR B EFORE APRIL 15, 2010 pHP 38,900.00 (X)
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This is not actual, but a proforma on how this Rental Income is presented for the purpose of Income tax