Tax on Domestic Corporation

The Capital Gains Tax

 15%: Capital Gain on the sale at a gain of the shares of stock of a domestic corporation not listed and traded in a
local stock exchange held as an investment (or capital asset)

- On sale basis, and does not apply if there is loss

-Formula on Shares of Stock (per transaction)

Selling Price Pxxx

Less: Cost xxx
Capital Gain/Loss xxx
Note: if it yield to a capital gain multiply by the rate (15%) to get the Capital Gains Tax
- Capital gain – not included in quarterly and year-ended computations of income tax
- Filing of return and payment of tax - On a transaction with gain within 30 days from the date of sale.

 6%: at whichever is higher between selling price and fair market value of real property. Regardless of gain/loss
on sale. Sale of real property (land, bldg., anything attached to soil with permanence).

- On per transaction basis. Applies regardless of location of property and even if there is gain or loss.

- Capital gain – not included in quarterly and year-ended computations of income tax

- Filing of return and payment of tax - On a transaction with gain within 30 days from the date of sale.

- Formula on Shares of Stock (per transaction)

Selling Price or FMV

whichever is higher P xxx
Multiply by rate 6%
Capital Gain Tax P xxx

Final Tax on Passive Income

- Passive Income – gains from investing on things that do not require hefty amt of work; money earned without
exchange of labor or time.

Examples of Passive Income

1.) Interest from currency deposits, trust funds, and deposit substitutes - 20%
Formula
Passive Income     Pxxx
Tax Rate                x 20%
Final Tax  P xxx
Note : Final Tax will be withheld by the income payor