Gross income

5,000,000
3,000,000
2,000,000
Business Expense
(3,000,000)
(2,000,000)
(1,500,000)
Basic Personal exemption
–
(50,000)
(50,000)
Taxable Net income
P2,000,000
P950,000
P450,000
Tax rate/ tax table
30%
• Corporate Income Tax
P60,000
• Basic Tax using the Old Tax Table
P268,000
P110,000
Distributable income (P2M-.6M)
= P1.4M
Final tax @10% on share in income of JV
LJ = P1.4M x 70% x 10%
98,000
Fermin = P1.4M X 30% x 10%
42,000
Total income tax expense
P600,000 P367,000 P152,000