{9.6
9. Exer
aimee, married, has two dependent mirior brothers. She is a partner of @ general professional partnership. She also has
|
| a vaT-registered trading business of her own. The following data are made available for the year 2014: i}
| _-Gross sales, trading business 2,500,000
} Cost of sales 2,000,000, |
Expenses, trading business 100,000 |
#12) Interest income, BPI-Makati 20,000
“2299 Share in the nek income of a general professional partnership Gross 1O3Dithholding tox 300,000"
Geah Royalty, books published in the USA *150,000
zc 2yp Salaries as part-time Teacher, (Toss of PS S00 ithholding tax 420,000
“Tax payments, frst 3 quarters 100,000
Compute the following
1) Income tax payable
Important Pointers in Taxable Partnerships
‘Taxable partnerships | Taxable partnerships:ere-required:to-file @-cumulative. quarterly. declaraton. and -Hnal
required to file cumulative | elumjusisike-corporations:
| declaration and annual
| b. Share of partner in a taxable] The share of partners in the het income of a taxable partnership shall be subject to
partnership subject to final | 0% final fax
|
tax |
. Exercise: A business partnership organized by partners Tin and Cris, equal partners, "has the following data for the |
calendar year ended 2014: is
Gross business income 1,000,000, |
Deductible expenses 300,000" |
Yield from deposit sibsitute, net of final withholding tax 50,000
Interest income derived from a depository bank under EFCDS, net of withholding tax 100,000
Gain from sale of shares of stock not traded inthe local stock exchange, net of capital gains tax 80,000
Withdrawals on the share in te net income of the partners, net of withholding tax 150,000 *
Rent income, gross of 5% withholding tax 300,000
Payments of quarterly taxes, first 3 quarters 120,000
‘Question 1 — How much is the taxable net income of the business partnership?
| 2~ How much is the tax payable of the business partnership?
How.muchuis the distributable net income of the partnership?
How much is the final withholding tax on the share of the partners, itany? |
r i ea 1
'b. Exempt joint ventures 4) Joint venture undertaking eonstuction:proieci; /
(pursuant to an operating | 2) Joint venture engaging 16 petroleum coal, ~qeothermaly-and..other -encxgy.|
or consortium agreement | operations;
Under a service contract
with the Government) i ws
& Requirements for tax~ | 1) For undertaking of «consrucion pect
exemptjoint ventures | 2) Should Involve joing or poaing of resources by ikensed local contractors,
| icensea as ‘general contractor by. Phitppine Contractors, Accreditation Board
| __(PcAB) of the Department of Trade and Industry (BT)
| 3) These local contractors are engaged in constuction business
|
4) The Joint Venture itself must likewise be duly licensed by the PCAB
1) Covered by a special license as contractor by the PCAB
2) The construction project 1s cettified by the. appropriate Tendering Agency
{Government office) that the project 's foreign financed/internationally funded
project and
3) That intemational bidding is allowed under the Bilateral Agreement entered into
by and Between the Philippine Government and. the fereign/intesnational
cing institution
are in a taxable joint venture’s net income oe TEE
\whichissgeneraly-exemptefromincomestax. In case of individual co-venturer, ik
subject
the OTT __
d. Non-taxable joint ventures
involving foreign
contractors
the net income
mpt joint venture
f. Exercise: Rhea Construction Company and Issa Construction Company formed a jonnt venture to undertake construction
| project pursuant to an operatir m agreement under a service contract with the Governs They shared in |
the income egualy#or the clits yeak 2014; te folowing data or Ue FON and saparets eaione rere |
[ie Nor tacable |
|
Joint operation: Gross income 150,000,000
Expenses: 50,000,000 ___ Jeebaneen
| Separate operations (not part of joint venture) Rhea Company |
Gross income 20,000,000 30,000,000
Expenses 5,000,000 __ 10,000,000, __|