Partnership(GPP)- part of the corporations not taxable

2 kinds of partnership
1. not subject to income tax
A. General Professional partnership- entity that is created for the exercise of

2. Subject to income tax

Capital Gains
Joint Ventures

Corporation (sec 22 b)
Types
1. Domestic- net assets does not exceed 100 million(land value shall not be included), or net income
does not exceed 5 million 5% lower than the income tax
Amended by CREAT LAW
a) The net taxable income should not exceed 5 million
b) The total assets should not exceed 100 million excluding the land value
2. Foreign- incorporated in the Philippines & under Philippine Law
a) Resident
b) Non resident- 25% from the gross earnings,
Sec 27: tax rates of domestic(30%)

Exempt for tax because of the

1. Constitution Art 14, non stock and non profit, non stock only 1%
2. Proprio
3. Sec 30, tax corp(page 115) show proof and given a certification for being exempted,
Burden of the claiming to prove

MCIT- this was implemented, to discourage corporation from declaring overstated expenses
Loss doesn’t exempt corp from taxes