A PEZA-registered enterprise started its commercial operations on July 1, 2017.

Following is its finan

How much is the total income tax liability for 2021 should it be a pioneer enterprise?

Same figures from the previous problem

How much is the total income tax liability for 2021 should it be a non-pioneer enterprise?
17. Following is its financial performance for the year 2021

enterprise?

neer enterprise?
Jackie Corporation is an export-oriented enterprise registered with the Subic Bay Metropolitan Autho
Based on its Certifiate of Registration, its Start of Commercial Operations is on 1 January 2022.
Jackie Corporation's registered activity involve production of a robotics spare part that is not locally p
but is critical to the development of the Philippines' automation industry.
During the year, Jackie imported an assembly machine that will be directly used in the production of
The assembly machine had a cost of Php55,000,000, a useful life of ten years, no salvage value and

Jackie had the following results of operations for calendar year 2022 as reflected in its audited incom

Sale of spare parts 124,000,000

Cost of Sales (82,300,000)
Gross Profit 41,700,000
Administrative Expenses (12,000,000)
Selling Expenses (6,800,000)
Interest Expense (970,000)
Earnings before taxes 21,930,000

The cost of sales included the depreciation of the imported assembly machine, which was purchased

On January 1, 2024, Jackie Corporation sold the assembly machine to Cathy Corporation, a domest

How much is Jackie Corporation's income tax for the taxable year 2022?
How long can Jackie Corporation enjoy income tax holiday?

Statement 1: After the expiration of Jackie Corporation's income tax holiday and upon availment of th
the depreciation of the assembly machine cannot be claimed as a deduction for purporses of compu
Statement 2: After the expiration of Jackie Corporation's income tax hoiday and upon availment of th
Jackie Corporation is entitled to claim enhanced deduction on the depreciation of the assembly mac

Which of the following statements is true regarding Jackie Corporation's sale of the assembly machi
a. Such sale requires prior approval from the Subic Bay Metropolitan Authority
b. The transfer is exempt from Value-Added Tax.
c. The transfer is exempt from customs duties.
d. Such sale does not require prior approval from the Subic Bay Metropolitan Authority.

If Jackie Corporation proceeds with the sale of the assembly machine to Cathy Corporation without p
a. Jackie Corporation would be liable for twice the amount of duty exemption that should have been
b. Camille Corporation would be liable for twice the amount of duty exemption that should have been
c. Jackie and Cathy Corporation would be solidarily liable for twice the amount of duty exemption th
d. Jackie and Cathy Corporation would be jointly liable for twice the amount of duty exemption that
 Subic Bay Metropolitan Authority.
ons is on 1 January 2022.
s spare part that is not locally produced in the Philippines

ectly used in the production of Jackie's robotic spare parts.

en years, no salvage value and is depreciated using the straight-line method of depreciation.

s reflected in its audited income statement:

machine, which was purchased on January 1, 2022.

Cathy Corporation, a domestic corporation which is not registered with any investment promotions agency.

oliday and upon availment of the special corporate income tax,

uction for purporses of computing gross income.
oiday and upon availment of the special corporate income tax,
reciation of the assembly machine.

's sale of the assembly machine to Cathy Corporation?

politan Authority.

to Cathy Corporation without prior approval of the concerned investment promotion agency, then:
mption that should have been paid.
emption that should have been paid.
e amount of duty exemption that should have been paid.
mount of duty exemption that should have been paid.
promotions agency.

ncy, then:
Jackie Corporation, a pioneer status, entitled to 6 years ITH and 5% GIT thereafter, is registered b
Economic Zone Authority (PEZA) as an export enterprise, to avail of the tax incentives in 2015. Its
commercial operation is January 1, 2016. During the taxable years 2021 and 2022, Jackie Corpora
amounts reflected in its audited income statement:

2021 2022
Sales 17,000,000 19,500,000
Less: Cost of Goods Sold -12,800,000 -14,425,000
Gross Profit 4,200,000 5,075,000
Less Operating Expense -2,000,000 -3,000,000
Earnings before taxes 2,200,000 2,075,000

Assuming that all sales are from registered activities, how much is the income tax due of the corpo
Assuming that all sales are from registered activities, how much is the income tax due of the corpo
 thereafter, is registered before the Philippine
ax incentives in 2015. Its stated start of
and 2022, Jackie Corporation had the following

ome tax due of the corporation for 2021?

ome tax due of the corporation for 2022?
Jackie, Inc. is a registered export enterprise who is way past its ITH period. It reported the follo

Year 1 Year 2 Year 3

Gross Revenues 5,000,000 6,000,000 7,000,000
Direct Costs 3,000,000 3,200,000 3,800,000
Regular Expenses 800,000 900,000 1,100,000
Expenses allowed for 50%
1,000,000 1,200,000 1,000,000
enhanced deductions

Compute the income tax due for Year 1 assuming the use of the special corporate income tax ra
Compute the income tax due for Year 2 assuming the use of the special corporate income tax ra
Compute the income tax due for Year 3 assuming the use of the special corporate income tax ra
Compute the income tax due for Year 4 assuming the use of the special corporate income tax ra
Compute the income tax due for Year 1 assuming the use of the enhanced deductions.
Compute the income tax due for Year 2 assuming the use of the enhanced deductions.
Compute the income tax due for Year 3 assuming the use of the enhanced deductions.
Compute the income tax due for Year 4 assuming the use of the enhanced deductions.
riod. It reported the following figures for its SCIT/ED period.

Year 4
7,500,000
4,000,000
1,200,000

800,000

orporate income tax rate.

orporate income tax rate.
orporate income tax rate.
orporate income tax rate.
d deductions.
d deductions.
d deductions.
d deductions.
Jackie, a registered export enterprise, reported a gross income of P16,500,000 during 2028.
Its income tax holiday lapsed on July 31, 2028. How much is its special income tax due?
500,000 during 2028.
l income tax due?
Jackie is a registered export enterprise with an activity classified under Tier 2. It relocated to
after its registration. Its total tax incentives will span for how many years?
nder Tier 2. It relocated to Surigao three years
ars?
Jackie Corporation provides 20% discount to senior citizens. It recorded the
following during the year:

Regular Senior Citizen Total

Receipts P8,000,000 P1,000,000 P9,000,000
Cost of services 5,000,000
Other deductible expenses 2,000,000

The amount of gross receipts to be reported is

The regular and special itemized deductions from gross income is

A household had the following consumption for its utilities. The meters thereon are registered u
the name of Jackie, a senior citizen.

Utility Consumption Rate

Electricity 90 kWh P10/kWh
Water 40 m3 P30 / m3

How much is the total discount for the utilities?

eters thereon are registered under