Computation of Income Tax for Corporations

Sales/Receipts/Revenues/Fees X
Less: Sales returns, allowances, and discounts (X)
Net Sales/Receipts/Revenues/Fees X
Less: Cost of sales/services (X)
GROSS INCOME FROM OPERATIONS X
Add: Other taxable income not subject to Final Tax X
TOTAL TAXABLE INCOME X
Less: Allowable Deductions under Existing Laws
Ordinary Allowable Itemized Deductions X
Special Allowable Itemized Deductions X
NOLCO X
TOTAL DEDUCTIONS X
OR Optional Standard Deduction (40% of TOTAL TAXABLE INCOME) X (X)
NET TAXABLE INCOME (LOSS) X(X)
Multiply: Income Tax Rate 30%
REGULAR CORPORATE INCOME TAX (RCIT) X
vs. MINIMUM CORPORATE INCOME TAX (MCIT) (2% OF TOTAL TAXABLE X
INCOME)
INCOME TAX DUE HIGHE
R
Less: Tax Credits/Payments
Prior year’s excess credits other than MCIT X
Income Tax Payment under MCIT from previous quarters X
Income Tax Payment under RCIT from previous quarters X
EXCESS MCIT applied this current taxable year (IF RCIT is HIGHER) X
CWT from previous quarters per BIR Form 2307 X
CWT per BIR Form 2307 for the 4th quarter X
Foreign Tax Credits if applicable X
Tax paid in return previously filed (Amended Return) X
Special Tax Credits X
TOTAL TAX CREDITS/PAYMENTS X (X)
NET TAX PAYABLE (OVERPAYMENT) X(X)