TAX TABLE FOR INDIVIDUALS

IF TAXABLE INCOME BUT NOT OF THE EXCESS Tax base of income tax: TAXABLE INCOME
IS OVER OVER TAX IS PLUS OVER
Sales XX
250,000.00 - - Less: Cost of Sales/Service XX
250,000.00 400,000.00 - 20% 250,000.00 Gross Income from Operations XX
400,000.00 800,000.00 30,000.00 25% 400,000.00 Add: Other Income Not Subject to
800,000.00 2,000,000.00 130,000.00 30% 800,000.00 Final Withholding Tax XX
2,000,000.00 8,000,000.00 490,000.00 32% 2,000,000.00 Gross Business Income XX
8,000,000.00 2,410,000.00 35% 8,000,000.00 Less: Business Expenses XX
TAXABLE INCOME XX

Taxable Income income tax due

A. 200,000.00 zero

B. 350,000.00 250,000.00 -
excess 100,000.00 x 20% 20,000.00 (350,000 - 250,000)
income tax due 20,000.00 (0 + 20,000)

C. P600,000.00 400,000.00 30,000.00

200,000.00 x 25% 50,000.00 (600,000 - 400,000)
income tax due 80,000.00 (30,000 + 50,000)

D. 2, 500,000.00 2,000,000.00 490,000.00

500,000.00 x 32% 160,000.00 (2,500,000 - 2,000,000)
income tax due 650,000.00 (490,000 + 160,000)

E. 10,000,000.00 8,000,000.00 2,410,000.00

2,000,000.00 x 35% 700,000.00 (10,000,000 - 8,000,000)
income tax due 3,110,000.00 (2,410,000 + 700,000)
Exercise:
Compute for the income tax due if the taxable income is:
1. P245,000
2. P475,000
3. P1,800,000
4. P2,800,000
5. P9,500,000

income tax due

1. 0

2. 400,000.00 30,000.00
75,000.00 x25% 18,750.00
Income tax due 48,750.00

3. 800,000.00 130,000.00
1,000,000.00 x30% 300,000.00
income tax due 430,000.00

4. 2,000,000.00 490,000.00
800,000.00 x32% 256,000.00
income tax due 746,000.00

5. 8,000,000.00 2,410,000.00
1,500,000.00 x35% 525,000.00
income tax due 2,935,000.00