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Income Tax Flowchart

The document outlines the taxation rules for different types of taxpayers in the US, including resident citizens, non-resident citizens, resident aliens, non-resident aliens engaged or not engaged in trade or business, domestic corporations, resident foreign corporations, and non-resident foreign corporations. It shows whether each taxpayer type is taxed on worldwide income, capital gains, shares of stock sales, and at what tax rates for ordinary income, capital gains, and corporate income. It also indicates if final taxes apply to certain gains for some taxpayer types.

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bsulaw23
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574 views1 page

Income Tax Flowchart

The document outlines the taxation rules for different types of taxpayers in the US, including resident citizens, non-resident citizens, resident aliens, non-resident aliens engaged or not engaged in trade or business, domestic corporations, resident foreign corporations, and non-resident foreign corporations. It shows whether each taxpayer type is taxed on worldwide income, capital gains, shares of stock sales, and at what tax rates for ordinary income, capital gains, and corporate income. It also indicates if final taxes apply to certain gains for some taxpayer types.

Uploaded by

bsulaw23
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Flow of Ordinary Income CGT SOS

Tax
Wealth Taxpayer W/in W/out
Base Tax Rate 6% 5%/10%
RC : Resident Citizen RC NIT GTR 0-32%
NRC : Non-Resident Citizen NRC X NIT GTR 0-32%
RA : Resident Alien NO Gain Gain RA X NIT GTR 0-32%
NRAETB : Non-Resident Alien
NRAETB X NIT GTR 0-32%
Engaged in Trade or Business
NRANETB : Non-Resident Alien NOT NOT NRANETB X GIT Flat 25%
Engaged in Trade or Business Taxable DC NIT NCIT 30%
NOT Realized REALIZED
DC : Domestic Corporation RFC X NIT NCIT 30% X
RFC : Resident Foreign Corporation NRFC X GIT NCIT 30% X
NRFC : Non-Resident Foreign Corporation
NIT : Net Income Tax NOT
GIT : Gross Income Tax Taxable NOT Expressly
GTR : Graduated Tax Rate Expressly Excluded
NCIT : Normal Corporate Income Tax Excluded by Law
CGT : Capital Gains Tax by Law
SOS : (Sale of) Shares of Stocks
NOT
Taxable

RC NRC RA NRAETB NRANETB DC RFC NRFC

W/In W/Out W/In W/Out W/In W/Out W/In W/Out W/In W/Out W/In W/Out W/In W/Out W/In W/Out

NIT NIT NIT NOT NIT NOT


NIT NOT GIT NOT NIT NIT NIT NOT GIT NOT
Taxable Taxable Taxable Taxable Taxable Taxable

Ordinary CGT for sale of real Sale of shares of Ordinary CGT for sale of real
Income* property classified stocks not traded in Income* property classified
as capital asset stock exchange as capital asset
Ordinary Sale of shares of
Income* stocks not traded in
Graduated Flat Rate stock exchange
Tax Rate Final Tax 25% Final Tax
(0-32%) 6% Not Over 100K Over 100K 6%
Normal
5% 10% Corporate
Tax Not Over 100K Over 100K
30% 5% 10%
* compensation income, business income and professional income; capital
gains/passive income not subject to final tax
daniel.acedillo
bsulaw

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