INCOTAX - MODULE 3 ACTIVITIES

Multiple Responses - Corporations

Question 1: Valued Learning
1. Based from the third module, I learned about the correct application of income taxation on
corporations. Moreover, I became enlightened with the general principles involved regarding
corporations including its final withholding taxes.
Question 2: Questions
1. Since the computation for the Improperly Accumulated Earnings Tax is a bit confusing, what
should be always remember to correctly compute for it aside from the given formula?
2. In computing for the taxable income, should NOLCO be deducted? Why?
Question 3: Takeaways
1. The third module taught me of the correct computation of income tax for corporations.
2. After studying the third module, I realized that the computation for final withholding taxes of
corporations are somehow similar with the computation for individual tax payers.
3. The module enlightened me that throughout the years, there are still existing inconsistencies
regarding the application of the Improperly Accumulated Earnings Tax for corporations.

Multiple Responses - Partnerships

Question 1: Valued Learning
1. Based from the last topic on module 3, I learned about how the income of partnerships should
be taxed. Moreover, I learned about the two kinds of partnerships in which the ordinary income
of General Professional Partnerships are tax exempt while General Partnerships are subject to
tax.
Question 2: Questions
1. In computing for the distributive share of a partner, what principle or factors should we always
remember to consider?
2. What is the difference between the itemized deductions and OSD? What will be its effect to
the tax that would be paid by the partners?
Question 3: Takeaways
1. The last topic taught me on the correct treatment and application of the different tax rates in a
partnership.
2. Based from the topic on income taxation for partnerships, I learned that the General
Professional Partnerships and the General Partnerships are not the same including its tax
treatments.
3. The topic also taught me the three allowable deductions that the partners of a GPP may avail
in computing for their distributive shares that they will need to compute for their net taxable
income.