1 COMPENSATION INCOME EARNER

2 SELF EMPLOYED
3 MIXED INCOME EARNER
SELF EMPLOYED
basis
1 Graduated Tax Rate + Percentage Tax taxable income =
2 8% optional income tax rate taxable income =

Gross Sales 2,800,000.00

Less: Allowable Deduction 250,000.00
Taxable income 2,550,000.00
x Rate 8%
Income Tax Due 204,000.00
Less: Withholding taxes 28,000.00
Income Tax Payable 176,000.00
 Rate
gross sales/receipts - Expenses (Cost of sales and operating expenses) table
gross sales/receipts - 250,000 8%
COMPENSATION INCOME EARNER

Basis
- Graduated Tax Rate Taxable Compensation Income
- Other employee benefits non-taxable = P90,000

Compensation income 1,800,000.00

Add: taxable emp. Ben 60,000.00
Taxable compensation income 1,860,000.00

Tax Due
First 800,000 130,000.00
Excess 1,860,000.00
800,000.00 1,060,000.00 30% 318,000.00
Tax Due 448,000.00
Less: Withholding taxes (2316) 448,000.00
Total Tax Payable -
exclusive inclusive
MIXED INCOME EARNER
= Compensation income
= Self employment income

Compensation income
Compensation income 1,800,000.00
Add: taxable emp. Ben 60,000.00
Taxable compensation income 1,860,000.00

Tax Due
First 800,000 130,000.00
Excess 1,860,000.00
800,000.00 1,060,000.00 30% 318,000.00
Tax Due 448,000.00
Less: Withholding taxes (2316) 448,000.00
Total Compensation Income Tax Payable -

1 Graduated Tax Rate + Percentage Tax

2 8% optional income tax rate

Business income
Gross Sales 2,800,000.00
Add: Non operating income -
Taxable income 2,800,000.00
x Rate 8%
Tax Due 224,000.00
Less: Withholding taxes 28,000.00
Total Business Income Tax Payable 196,000.00

Total Income Tax Due 672,000.00

Total Income Tax Payable 196,000.00
basis
taxable income = gross sales - Expenses (Cost of sales and operating expenses)
taxable income = gross sales/receipts
Rate
table
8%
Sales 2,800,000.00
Less: Allowed as deduction 250,000.00
Taxable income 2,550,000.00
x rate 8%
Tax due/expense 204,000.00 a
Less: Tax credits 28,000.00
Tax payable 176,000.00 b

Compensation income 1,800,000.00

Add: Taxable income 60,000.00
Taxable compensation income 1,860,000.00

800,000 - 2,000,000
1,060,000.00
30%
318,000.00
130,000.00
Tax due/ expense 448,000.00
Less: tax credits 448,000.00
tax payable -

Compensation income 1,800,000.00

Add: Taxable emp benefits 60,000.00
Taxable compensation income 1,860,000.00

800,000 - 2,000,000
1,060,000.00
30%
318,000.00
130,000.00
Tax due/ expense 448,000.00
Less: Tax Credit 448,000.00
-

Compensation income 150,000.00

Less: nontaxable emp ben 20,000.00
Taxable compensation income 130,000.00

Gross Sales 2,400,000.00

Non operating income 100,000.00
Expenses (600,000.00)
Business taxable income 1,900,000.00
Total Taxable income 2,030,000.00

First 2M 490,000.00
Excess 2,030,000.00
2,000,000.00
30,000.00
32% 9,600.00
Tax due 499,600.00
Less: Tax credits
Compensation
Business

Compensation income Graduated

Self employed Graduated
8% 250,000.00

Mixed income earner Graduated compensation

8% business
Graduated compensation
Graduated business
 Sales 2,800,000.00
x rate 8%
Tax due/ expense 224,000.00
Less: Tax Credit 28,000.00
196,000.00
 672,000.00
476,000.00
tax payable 196,000.00