MARTINEZ, Kimberly B.

INCOME TAXATION
BSBA 1B

What are the different classification of taxpayers?

A taxpayer may be an individual or business entity that is obligated to pay taxes to a

federal, state, or local government. Taxpayers are classified into different categories,
each classification has different obligations to the government. The classification of
taxpayers has two subtopics: the individual taxpayer and corporate taxpayer. Individual
taxpayers classified in four first are a.) resident citizens- a citizen of the Philippines
residing therein. Under the 1987 Constitution1, the following are citizens of the
Philippines. b.) Non resident citizens- are taxed only on their income from Philippines
sources. c.) Resident aliens- Is a character who's stateless or is a countrywide of every
other us of and who lives withinside the Philippines without a precise aim as to duration
of stay, however who isn't a trifling brief or sojourner. An expatriate operating withinside
the Philippines on an agreement for an indefinite length probably falls into this category.
d.) Non-resident aliens- a person who involves the Philippines and remains for extra
than one hundred eighty days at some stage in any calendar year might be deemed a
non-resident alien engaged in alternate or enterprise withinside the Philippines. If the
mixture live withinside the Philippines at some stage in any calendar year included
through the venture length does now no longer exceed one hundred eighty days, the
person can be deemed a non-resident alien now no longer engaged in alternate or
enterprise withinside the Philippines. Now let's talk about the corporate taxpayer and
this has two subtopic first is domestic corporation and general professional partnership.
Domestic corporation- is a business entity that is organized, registered, and current
below Philippine laws. It is a synthetic being created via means of operation of
regulation and has a juridical persona that is cut loose its stockholders and/or different
businesses to which it's miles connected. A Foreign-owned Domestic Corporation is
one in which overseas fairness exceeds 40 percent (40%). It can be managed with the
aid of foreigners however the Corporate Secretary and Treasurer ought to be Filipino
citizens and citizens. A foreign corporation is either a resident - a corporation engaged
in trade or business in the Philippines, or a non-resident - a corporation not engaged in
trade or business in the Philippines. Last is general professional partnership are
partnerships created by people for the sole purpose of practicing their common
profession, with no part of their revenue coming from commerce or business.