Your friend seeks for your help regarding his income taxes and gives you his pertinent

details as
follows:

Name Rap G. Santos

Taxpayer Identification Number (TIN) 111-222-333-000
Date of Birth(DOB) June 5, 1985
Civil Status Married to Maria M. Santos
Birthday: July 1, 1985
TIN: 123-456-789-000
Address 36 A San Roque, Bonifacio Bldg., Taguig
E-mail address rap.g.santos@yahoo.com.ph
Contact Number 0917-123-4567
Passport Details Passport Number: XY1234567
Place of Issue: DFA MANILA
Date of Issue: December 23, 2018
RDO-Taguig 044
Mr. Santos also has two children, Girlie Ann (DOB: January 8, 2009) and John Patrick (DOB:
February 11, 2011). He works as an HR Manager in KT Company (TIN: 321-645-978-000) while
his spouse is a housewife. Compute for the taxable compensation income of Mr. Santor.

1. Suppose that Mr. Santos earns the following during the tax year 2019

Basic Salary P200,000

Overtime Pay 72,000
Holiday Pay 26,000
Night Shift Differential Pay 35,000
Hazard Pay 10,000
Tax withheld on compensation (Form 2316) 11,600

*NCR minimum wage rate is P537.00/day.

Assuming also that the number of working days in a year is 365.

Aside from the earnings he received, he also received the following 13 th month pay and
other benefits:

Commissions P15,000
Honoraria 10,000
Bonus and other Benefits 46,000
13th month Pay 25,000
Lord Allan Cayetano had the following data from his LAC Online Retail Business for
taxable year 2018.

Cash 1,287,250
Sales 2,525,000
Accounts receivable 264,250
Sales Discounts 20,000
Land 3,978,500
Cost of Goods Sold 675,000
Depreciation expense 125,000
Transportation expense 35,000
Salaries, Wages & Allowances 345,690
Interest Expense 13,750
Taxes & Licenses 84,350

How much is the taxable income of Lord Allan Cayetano.