Lester Buhain generated annual compensation income of ₱ 455,000, net of statutory payments.

Tax
exempt 13th month pay and other bonuses – ₱ 30,000. Determine the tax due of Lester Buhain based
on the following possible tax status of Lester using the OLD TAX LAW:

b. Lester is single with no dependent.

Generated annual compensation income – net of statutory payments P455,000

th
13 month pay and other bonuses (30,000)
Gross taxable compensation income P425,000
Personal deductions (50,000)
Net annual compensation income P375,000

Base rate P50,000

30% of the excess over P250,000 37,500
Tax due P87,500

a. Lester is single with one qualified dependent.

Generated annual compensation income – net of statutory payments P455,000

13th month pay and other bonuses (30,000)
Gross taxable compensation income P425,000
Personal deductions (50,000)
Additional deductions (25,000)
Net annual compensation income P350,000

Base rate P50,000

30% of the excess over P250,000 30,000
Tax due P80,000
c. Lester is married with one qualified dependent.

Generated annual compensation income – net of statutory payments P455,000

13th month pay and other bonuses (30,000)
Gross taxable compensation income P425,000
Personal deductions (50,000)
Additional deductions (25,000)
Net annual compensation income P350,000

Base rate P50,000

30% of the excess over P250,000 30,000
Tax due P80,000

e. Lester is married with three qualified dependents.

Generated annual compensation income – net of statutory payments P455,000

13th month pay and other bonuses (30,000)
Gross taxable compensation income P425,000
Personal deductions (50,000)
Additional deductions (75,000)
Net annual compensation income P300,000

Base rate P50,000

30% of the excess over P250,000 15,000
Tax due P65,000

d. Lester is married with three qualified dependents.

Generated annual compensation income – net of statutory payments P455,000

th
13 month pay and other bonuses (30,000)
Gross taxable compensation income P425,000
Personal deductions (50,000)
Additional deductions (100,000)
Net annual compensation income P275,000

Base rate P50,000

30% of the excess over P250,000 7,500
Tax due P57,500
 Taylor Swift owns a trading business. Sales for the year amounted to P 1,765,000. Expenses are given
in the table below:

Determine the tax due of Taylor Swift using the TRAIN LAW based on the following possible tax status:

a. Taylor is married with two qualified dependents.

b.

Total Revenues 1,765,000

Less: Total expenses (827,000)

Net Taxable Income P938,000

Base rate P130,000

30% of the excess over P800,000 41,400
Tax due P171,400
b. Taylor is single with two qualified dependents.

Total Revenues 1,765,000

Less: Total expenses (827,000)

Net Taxable Income P938,000

Base rate P130,000

30% of the excess over P800,000 41,400
Tax due P171,400