Flow of Discussion

Greetings!
 Good evening everyone, good evening ma’am.
We are the Group 10 and we will be discussing CORPORATE INCOME
TAXATION - REGULAR CORPORATION
 1st slide
o THE REGULAR CORPORATE INCOME TAX (basahin yung
nasa slide)
o Sabi po dito ang RCIT ay naa-apply sa lahat ng types of
corporation. Anu-ano po ba yung mga types ng corporation?
o We have 3 types of corporation (domestic corporation, resident
foreign corporation and non-resident foreign corporation)
o Pag sinabi mo nating domestic corporation, ito po yung
corporation na nabuild, na-organize dito mismo sa bansa and
under po sya ng Philippine laws.
o While sa resident and non-resident foreign corporation naman,
ito yung mga corporation na sa ibang bansa nabuo at na-organize
and under po sya nang foreign law pero nagbabayad parin sila ng
tax dito sa bansa dahil pwede may business din sila dto
halimbawa branch nila
o Yung kinikita nun ang taxable within the country. Yung kinikita
nila dito sa loob ng bansa at kapag outside the country na foreign
law na nagtatax dun.
o It covers all the taxable income of corporations that are not
subject to final tax or capital gains tax. Ibig sabihin sakop po ng
RCIT lahat ng taxable income ng isang corporation.
o Ano ba ang taxable income? Ito yung income ng bawat
corporasyon na taxable under the law like yung mga wages,
salaries, bonuses, and tips, as well as investment income and
various types of unearned income.
o Nakalagay din dito ang RCIT ng lahat ng corporation daw ay 30%
under the TRAIN LAW or yung tinatawag natin THE TAX
REFORM FOR ACCELERATION AND INCLUSION.
 o Meaning to say 30% sa lahat ng kinikita ng isang corporation ay
ang RCIT.
 2nd slide
o Ang RCIT ay under sya ng ordinary or regular income. Isa to sa
mga types of income along with passive income and capital gains.
o Ano ba ang Ordinary or Regular Income? Basahin yung nasa
slide.
o Explanation: ito yung mga income ng isang corporation ng
nanggagaling sa benta or sale, pagbebenta ng properties,
miscellaneous income and passive income other than those
subject to final income tax or capital gains tax.

 3rd slide
o Para po mas maintindihan pa natin ang RCIT ng bawat
corporation. Ito po yung summary
o As you can see, hindi na po sya 30% kundi naging 25% kasi under
napo sya ng CREATE law.
o Basahin yung nasa table.( type of corporation at tax rate)
o Based on our research, nagkaroon po ng provision at revision sa
TRAIN law kaya nagawa tong bagong act na tinatawag nating
CREATE act or Corporate Recovery and Tax Incentives for
Enterprises.
o Naglabas po kasi ng panibagong Memorandum ang BIR na
nagsasabi, The Bureau of Internal Revenue (BIR) has addressed
the questions and concerns of taxpayers and stakeholders on
corporate income taxation in its Revenue Memorandum Circular
(RMC) 62-2021 issued on May 17, 2021. The RMC clarifies BIR
Revenue Regulations (RR) 5-2021.
Under the Corporate Recovery and Tax Incentives for
Enterprises (Create) Act, domestic corporations may be
subjected to a lower regular corporate income tax (RCIT) rate of
25 percent starting July 1, 2020.
o Naging effective po to noong july 01, 2020 para sa domestic
corporation, same din sa domestic corporation with net taxable
income same goes to resident foreign corporation at January 01,
2021 naman sa non-resident foreign corporation.
 4th slide
o Para po makuha natin yung RCIT ng isang corporation. Ito po
yung formula
o Basahin nasa slide.
o Sales/revenues minus cost of goods sold para makuha natin yung
gross income.
o Gross income ito yung kabuoang kita ng isang corporasyon sa
lahat ng sources na meron ito na hindi pa nababawasan o
natatax’n.
o Pagkatapos nating makuha yung gross income, minus ulit natin
sya sa allowable deductions.
o Allowable deductions or allowable tax deductions. Ito yung
amount na binabayaran ng isang company or corporation na
connected or related sa paano ito kumita. Like sa rental,
professional fees, contractors, and commissions.
o After nating iminus yun, makukuha na natin ang taxable income.
o Taxable income ito yung mga kinikita ng isang corporasyon na
taxable under the law like yung wages, salaries, bonuses, and
tips, as well as investment income and various types of unearned
income.
o Once na nakuha na nating ang taxable income, imumultiply na
natin ito sa ating RCIT rate as you can see may dalawang option
tayo 20% at 25% . ipinikita kona to kanina sa previous slide 25%
ang tax rate sa domestic corporation in general, resident and
non-resident corporation at 20% naman sa domestic corporation
with net taxable income.
o After nating imultiply ang taxable income at RCIT rate,
makukuha na nating ang ating RCIT o regular corporate income
tax.
 5th slide
o Para ma-apply natin yung formula may isa akong illustration dto.
o Ito ay isang example ng domestic corporation, in general.
o Basahin yung nasa slide (ABC corp hanggang sa located)
o so let’s apply our formula
o sa ating sales/revenues based sa ating example meron po tayong
1.4 billion pesos minus sa cost of goods sold na 560 Million pesos
o nakuha po natin ay 840 million pesos which is our Gross Income
o gross income na 840 million minus allowable deductions na 150
million pesos equals to 690 million pesos, ito na yung ating
taxable income.
o After nating makuha yung taxable income na 690 million
imumuliply na natin sya sa ating RCIT rate na 25% since it is a
domestic corporation, in general.
o Domestic corporation, in general kasi kasali dto yung land
costing o yung halaga ng lupa kong saan nakatayo yung business
o company.
o So 690 million pesos x 25% na RCIT rate is equal to
172,500,000.00 pesos
o Eto na po yung final result o yung ating regular corporate income
tax.
o Same lang ang gagawing solution at computation sa other types
ng corporation.

That’s all po, next reporter!