Estrada, Alaiza B.

BSBA FM 2-C
REACTION PAPER

The video presentation explains the taxpayer's dual obligation, which includes filing
and paying taxes using the self-assessment method and withholding and remitting
taxes using the withholding tax system. The primary obligation of taxpayers is to
report their taxable income or earnings to the government.
Taxpayers are required by law to deduct taxes from other people's expenses, such
as passive income, compensation, and other types of income, such as rent,
professional fees, and the purchase of goods and services, under the withholding tax
system. In addition to that, it also explains the general income criteria or taxation
concept. Income must be taxable if it includes a return on capital, realized benefits,
and the ability to pay taxes.
There are also incomes that are exempt by law, constitution, contract, or treaty, such
as nonprofit school income. The article goes on to explain the three different types of
income tax schemes: final income tax, capital gains tax, and regular income tax.
Individuals, corporations, partnerships, and foreign corporations are all types of
income taxpayers, according to the article. Tax is a recurring obligation that must be
paid on an annual, monthly, or yearly basis.
The situs of income is also important in determining the country's taxing power.
Goes on to describe the various sources of income, such as interest, dividends,
service, rent, royalty, gain on sale, mining, farming, merchandising, and
manufacturing. A resident or domestic corporation is subject to global taxation, and
the accounting method is used to calculate taxable income. The article also
discusses the various taxation methods, such as the accrual basis, installment
method, and fixed and variable income groups.

Finally, the video provides a thorough overview of the various types of taxpayer
obligations, income tax schemes, and taxation methods. Understanding these
concepts is critical for individuals, corporations, and partnerships to meet their tax
obligations while avoiding legal outcomes.