GUNO, MURIELLE S.

BSBA II-B

WEEK 2 Assignment A: Classifications of Individual Taxpayers

1.) How is tax computation for a purely-compensation income earner different from a
mixed-income earner? Without actual computation, show the main differences by
presenting them on a table.

PURELY-COMPENSATION INCOME
EARNER
- A minimum wage earner as
defined in Section 22(HH) of the
tax code who are exempt from
income tax pursuant to the
provisions of the tax code.
- Under the provisions of Section
79 that an individual deriving
compensation concurrently
from two or more employers at
any time during the taxable year
shall file an income tax return.
- An individual whose taxable
income does not exceed P
250,000.00.
- An individual whose sole income
has been subjected to final
withholding tax pursuant to
Section 57(A) of the tax code.
MIXED-INCOME EARNER
- Any person acting in any
fiduciary capacity for any
persons, where such trust,
estate, minor, or person is
engaged in trade or business.
- A resident alien, non-resident
alien or a citizen individual
engaged in trade, business or
practice of profession within the
Philippines.
- An individual engaged in trade,
business, or in the exercise of
their profession and receiving
compensation income as well.

2.) Differentiate the graduated tax rates from the 8% income tax rate?

- Availability of the optional standard deduction as method of deduction are fir

those who graduated on taxation.regardless of the amount sales/receipts
and other non-operating income, while the 8% tax rate are those who can
availed of the 8% flat income tax rate whose sales/receipts other non-
operating income do not exceed P3M.