1. A married resident citizen has five (5) qualified dependents.

The following information pertain to his income and

expenses.
Salary, net of 20,000 withholding tax 380,000
Rent expense 36,000
Health insurance premium paid 5,000
How much is the taxable compensation income?
2. A single resident citizen has two (2) qualified dependents and has the following data for the year:
Gross income from practice of profession 250,000
Expenses in connection with his practice of his profession 50,000
Health insurance premium paid 2,000

3. A married individual has four (4) dependent children. He has the following data on income and expenses for the
year:
Salary, Phils., gross of withholding tax of 5,000 60,000
Gross business income, Phils. 500,000
Business expenses, Philippines 80,000
Gross business income, US 900,000
Business expenses, US 100,000
Compute the taxable net income in the Philippines assuming he is:
a. Resident citizen
b. Non-resident citizen
c. Resident alien

4. An individual taxpayer asked you to assist him in the preparation of his tax return. He provided you the following
information:
Gross business income, Phils. 1,000,000
Gross business income, Korea 5,000,000
Business expenses, Phils. 200,000
Business expenses, Korea 800,000
How much is the taxable income assuming the taxpayer is a:
a. Resident citizen, married and has six (6) qualified dependent children
b. Non-resident citizen, head of family with two (2) qualified dependent brothers
c. Non-resident alien engaged in trade, single (his country allows a personal exemption of 40,000 to single Filipinos
not residing in that country)
d. Non-resident alien not engaged in business, married with only one (1) qualified dependent children (his country
allows basic personal exemption of P10,000 and additional exemption of P5,000 for each dependent child to
Filipinos not residing in that country)

5. A husband and wife, resident citizens, with one (1) qualified dependent child, had the following income and
expenses for the year. The husband waived the additional exemption in favour of his wife.
Salary of the husband, net of 50,000 withholding tax 450,000
Salary of the wife, gross of 60,000 withholding tax 600,000
Professional income, husband, net of 15% withholding tax 850,000
Expenses, practice of profession 300,000
Gross business income, wife 500,000
Business expense, wife 100,000
Rent income, gross of 5% withholding tax 700,000
Expenses, lease 200,000
Business income, Singapore 600,000
Business expenses, Singapore 150,000
How much is the taxable income:
a. of the husband?
b. of the wife?