Determination of Applicable Tax

(Final Withholding Tax on Passive Income, Basic Income Tax, Exempt)

Determine whether the income described below is subject to fir withholding tax on passive
income, basic income tax or exempt from income tax. Write the following in the TAX TYPE
column:
 F= if the income described is subject to final withholding tax on passive income. In
addition, if such income is subject to FWT, provide the correct FWT rate in the TAX
RATE column.
 B = if the income described is subject to basic income tax.
 E = if the income described is exempt from income tax
Unless provided otherwise, assume the taxpayer is a resident citizen.

TAX TAX RATE

TYPE
1. Interest from peso bank deposit, BDO, Makati F 20%

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2. Interest from US dollar bank deposit, BPI-Manila F 15%
3. Interest from a foreign currency deposit in Japan B 20%

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4. Interest from money market placement, Philippines F 20%
5. Interest from a foreign currency deposit in Australia by a E -

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nonresident citizen
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6. Interest from overdue accounts receivable, Philippines E -
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7. Compensation income, Philippines B Graduated tax rates
0% to 32%
8. Business income, Philippines B Graduated tax rates
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0% to 32%
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9. Gain from sale of car for personal use B Graduated tax rates
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0% to 32%
10. Gain from sale of delivery truck B Graduated tax rates
0% to 32%
11. Royalties, in general, Davao City F 20%
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12. Royalties, books published in Manila F 20%

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13. Prizes amounting to P30,000, Philippines F 20%

14. Prizes amounting to P 10,000, Philippines B -
15. Prizes amounting to P40,000, USA F 20%
16. P30,000 Other Winnings, Philippines F 20%
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17. P10,000 Other Winnings, Philippines E -

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18. P15,000 Other Winnings, Canada F 20%

19. P10,000 Phil. Lotto/PCSO winnings E -
20. P100,000 PCSO winnings by a resident alien F 20%
21. Philippine Lotto/PCSO winnings by a nonresident alien not engage F 25%
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in trade or business
22. Lotto winnings in London F 20%
23. Interest income from long-term bank deposit by a resident alien E -
24. Interest income from long-term bank deposit by a nonresident alien F 20%
not engaged in trade or business

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 25. Interest income from a government issued bonds with maturity of E -
ten (10) years
26. Interest income from' bonds issued by PLDT with maturity of ten B -
(10) years
27. Dividend income from a domestic corporation F 10%
28. Dividend income from a resident foreign corporation F 10%
29. Dividend income from a nonresident foreign corporation B 10%
30. Dividend income from a domestic corporation by a nonresident F 25%
alien engaged in trade or business

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