INCOME TAX REVIEWER

Passive Income
Interest on Phil Currency Bank Deposit
Interest under Expanded Foreign Currency Deposit System
Royalties from books, literary works, and musical
composition
Royalty other than above
Winnings less than or Equal to 10,000
Winnings greater than P10,000
Dividends
Capital Gains on Sale of Real Property
6%
Tax Base= Higher between:
Gross Selling Price
Fair Market Value
Zonal Value
Assessed Value
FMV, buyer & seller point(?)
Capital Gains on Sale of Shares
Traded (Stock Transaction Tax)
------- of 1% of Gross selling
price
Not traded
Capital Gain Not over P100,000
5%
Capital Gain Over P100,000
10%
SA- Special Taxpayers Employed by
a. Regional Head-office of Multi-National
Corp assigned in the Phil
b. Offshore Banking Unit
c. Petroleum Service Contractor
Direct Costs
1. Salaries of personal directly engaged
in the production of services
2. Allowances of consultants and
specialists
3. Cost of supplies

20%
7.5% (NonresCit are
exempted)
10%
20%
based on STR
20%
10% (20% for
NRAe)

4. Cost of facilities- rentals, utilities and

depreciation
TAX CREDITS
-Withholding Tax
-Expanded
-Quarterly tax paid
-Taxes Paid Abroad
Tax Credit for Taxes Paid to Foreign Countries
Limit of tax credit paid to Foreign Country
Tax credit=
Taxable Income from Foreign Country
Taxable Income from ALL Sources (before
BPE and AE) x Philippine Income Tax
a. Computation of Phil Income Tax before Tax
Credit
Taxable Income from all sources:
Phil
Japan
Taxable Income before Exemption
Less: Personal Exemption
Taxable Income
b. Determination of allowable tax credit
foreign (lower)
Limit 1- Actual Tax Paid
Limit 2- Individual Taxable Income- foreign
Limit 3- Total Taxable Income- foreign