Professional Documents
Culture Documents
A. GROSS INCOME
Gross Income income, gain or profit subject to
income tax
- includes:
o Compensation Income
o Business Income
o Profits
o Income derviced from any source
whatever, unless exempted by law or
in
accordance
with
semi-
the PH
Dividends-Residence of the corporation paying
tax (RCIT)
3.
- gross
4.
5.
1.
freeport zones
and exemptions
PH
Sale of personal property:
a. Personal property produced by the
taxpayer within the PH and sold
without the PH, or produced by the
taxpayer without and soled within the
of services,
5.
of
personal
property
6.
7.
8.
domestic
CAPITAL
INCOME
bank deposit)
on
savings
bank
deposit)
A fund of property
A flow of services
(e.g.
rendered
by
that
capital
by
the
payment
of
personam
C. TYPES OF INCOME, GRAIN OR PROFIT
building
lease)
existing
for
at
instant of time
money
benefit rendered by a
investment
- flow of service rendered by capital by the
rental
income)
in
though a period of
time
or
unlawfully
Wealth
Service of wealth
Tree
Fruit
Subject to tax
Increase in inventory
Transfer of appreciated property to employee for
3.
4.
services rendered
Sale of goodwill
Just compensation for expropriated property
creditor
Test in Determining Income
1.
2.
networth of taxpayer
Increase in networth due to correction of errors in
3.
book entries
Voluntary assessments by a corporation paid by
4.
its shareholders
Stock divdend
3.
4.
4.
5.
- a taxable gain is
thereon
Kinds of Income
5.
1.
Compensation Income
income, is taxable
Equivalent of cash doctrine any economic
effected, is taxable
Income
promissory
notes
or
other
evidence
of
1.
foreign
organization
2.
3.
government
or
an
international
BUSINESS INCOME
A. NATIONAL INTERNAL REVENUE CODE
(NIRC)
Business Income - relate to sale of goods,
properties, or services
operations or sources
- fees received by a
his clients
the statute
not taken)
B. TAX TREATIES
Under that tax treaties of the PH with other
income
the PH
c.
organization
To engage- embark I a business or to
continuity of action
To engage in business is uniformly
stock exhange
Rules on sale of exchange of shares of stock of
a domestic corporation:
1.
2.
of
tax (corporation)
If the seller of transferor is not a dealer in
the
net
capital
gains
not
the
transaction
is
in
the
local
stock