BASIC PRINCIPLES OF TAXATION Philippines, it is congress that levies taxes;

and
TAXATION
2. Collection of the tax levied. This is essentially
Definition, Nature and Basis of Taxation an administrative function.
Taxation - is the process or means by which the Basic Principles of a Sound Tax System
sovereign, through its lawmaking body(Congress) ,
raises income to defray the necessary expenses of the 1. Fiscal adequacy. Sources of revenue are
government. Taxation, as a power of the State, is sufficient to meet government expenditures;
inherent in sovereignty. A government cannot
2. Equality or theoretical justice. The tax
continue to exist and operate without financial
imposed must be proportionate to taxpayer’s
means. This inherent power gives the government
ability to pay; and
the right to tax citizens and properties within its
jurisdiction. 3. Administrative feasibility. The law must be
capable of convenient, just and effective
In the Philippines, the premier tax agency is the
administration.
Bureau of Internal Revenue (BIR)
Limitations on the Power of Taxation
Objectives of Taxation
Constitutional Limitations are those provided for in
Taxation is much more than just a means of
the constitution or implied from its provisions.
raising revenue for the government. It is also one of
the major means by which the national government Inherent Limitations are restrictions to the power to
attempts to achieve various economic and social tax attached to its nature.
objectives.
The following are the inherent limitations:
This objective includes:
1. Purpose
 shifting wealth from the rich to the poor
2. Territoriality
 maintaining price stability
3. International comity
 Stimulating economic growth,
4. Exemption
 encouraging full employment
5. Non-delegation
State of Powers
Situs of Taxation
1. Taxation. The power of the state by which the
The situs of taxation is the place of taxation. The rule
sovereign raises revenue to defray the
is that the State may rightfully levy and collect the tax
necessary expenses of the government.
where the subject being taxed has a situs under its
2. Eminent Domain. The power of the state to jurisdiction.
take private property for public use upon
Situs of taxation is determined by a number of
payment of just compensation.
factors:
3. Police Power. The power of the state to enact
1. Subject matter – or what is being taxed. He
laws to promote public health, public morals,
maybe a person or it may be a property, an
public safety and the general welfare of the
act or activity;
people.
2. Nature of tax – or which tax to impose. It may
Aspects of Taxation
be an income tax, an import duty or a real
1. Levying of the tax. The imposition of tax property tax;
requires legislative intervention. In the
 3. Citizenship of the taxpayer; and
4. Residence of the taxpayer.
The following situs of taxation apply:
1. Persons – Residence of the taxpayer.
2. Real property or tangible personal property –
Location of the property.
3. Intangible personal property – As a rule, situs
is the domicile of the owner unless he has
acquired a situs elsewhere.
4. Income – Taxpayer’s residence or citizenship,
or place where the income was earned.
5. Business, occupation and transaction – Place
where business is being operated, occupation
being practiced and transaction completed.
6. Gratuitous transfer of property – Taxpayer’s
residence or citizenship, or location of the
property.
TAXES
Taxes are enforced proportional contributions from
persons and property levied by the lawmaking body
of the State of virtue of its sovereignty for the support
of the government and all public needs.
Essential Characteristics of a Tax
1. It is an enforced contribution;
2. It is levied by the lawmaking body;
3. It is proportionate in character;
4. It is generally payable in money;
5. It is imposed for the purpose of raising
revenue; and
6. It is to be used for public purpose.
Classification of Taxes
1. As to subject matter or object
a. Personal, poll or capitation – Example:
community tax
b. Property – Example: real estate tax
c. Excise – Examples: estate tax, donor’s tax,
income tax, value-added tax
2. As to whom bears the burden
a. Direct – Examples: community tax, income
tax, estate tax, donor’s tax
b. Indirect –Examples: customs duties, value-
added tax, some percentage taxes
3. As to determination of amount
a. Specific – Examples: tax on distilled spirits,
fermented liquors, cigars, wines, fireworks, etc.
b. Ad valorem – Value Examples: real estate
tax, certain customs duties, excise taxes on cigarettes,
gasoline and others.
4. As to purpose
a. General, fiscal, or revenue – Tax with no
particular purpose or object for the purpose
or object for which the revenue is raised, but
is simply raised for whatever need may arise.
Examples: income tax, value-added tax.
b. b. Special or regulatory – Tax imposed for a
special purpose regardless of whether
revenue is raised or not, or is intended to
achieve some social or economic end.
Example: protective tariffs or customs duties
on certain imported goods to protect local
industries against foreign competition.
5. As to authority imposing the tax or scope
a. National – Tax imposed by the national
government. Examples: internal revenue
taxes, tariff and customs duties.
b. Municipal or local – Tax imposed by
municipal governments for specific needs.
Examples: real estate taxes, municipal
licences.
6. As to graduation or rate
a. Proportional – Tax based on a fixed
percentage of the amount of property income
or other basis to be taxed. Examples: value-
added tax, percentage taxes, real estate taxes.
 b. Progressive or graduated – Tax rate increases
as the tax base increases. Examples: income
tax, estate tax, donor’s tax.
c. Regressive – Tax decreases as the tax base
increases. There is no regressive tax in the
Philippines.
Tax Distinguished from Other Fees
1. From toll. Toll is a sum of money for the use
of something, generally applied to the
consideration which is paid for the use of a
road, bridge or the like, of a public nature.
2. From penalty. Penalty is any sanction
imposed as a punishment for violation of law
or acts deemed injuries. Violation of tax laws
may give rise to imposition of penalty.
3. 3. From special assessment. Special
assessment is an enforced proportional
contribution from owners of lands for special
benefits resulting from public improvements.
4. From permit or license fee. Permit or license
fee is a charge imposed under the police
power for the purposes of regulation.
5. From debt. A debt is generally based on
contract, is assignable and may be paid in
kind while a tax is based on law, cannot
generally be assigned and is generally
payable in money. A person cannot be
imprisoned for non-payment of debt while he
can be for non-payment of tax (except poll
tax).
6. From revenue. Revenue is broader than tax
since it refers to all funds or income derived
by the government taxes included. Other
sources of revenues are government services,
income from public enterprises and foreign
loans.
7. From customs duties. Customs duties are
taxes imposed on goods exported from or
imported to a country. Customs duties are
actually taxes but the latter is broader in
scope.
Tax Evasion Versus Tax Avoidance
Tax avoidance happens when the taxpayer minimizes
his tax liability by taking advantage or legally
available tax planning opportunities. This is
otherwise known as tax minimization; others call it
tax planning. It is the process of controlling one’s
actions so as to avoid undesirable tax consequences.
Tax evasion occurs when the taxpayer resorts to
unlawful means to lessen or to get away with his tax
liability. This is also known as tax dodging. Examples
of tax evasion are under declaration of sales,
overstatement of expenses and backdating an
important document.
Tax evasion connotes the integration of three factors:
1. The end to be achieved (i.e., payment of less
than the amount known by the taxpayer to be
legally due, or nonpayment of the tax when it
is shown that a tax is due);
2. An accompanying state of mind that is
described as being in bad faith, willful, or
deliberate and not accidental; and
3. A course of action or failure of action that is
unlawful (Commissioner of Internal Revenue v.
The Estate of Benigno P. Toda, Jr., GR No,
147188, Sept. 14, 2004).
TAX LAWS
Sources of Tax Authority
The three branches of the national government are:
 the Congress,
 the President and his administration,
 And t
 he Courts.
Congress creates statutory law. The National Internal
Revenue Code (NIRC) of 1997 is a statutory law.
Sources of Tax Laws
1. Constitution;
2. Statutes and Presidential Decrees ;
3. Revenue Regulations by the Department of
Finance;
 4. Rulings issued by the Commissioner of
Internal Revenue and Opinions by the
Secretary of Justice;
5. Decisions of the Supreme Court and the Court
of Tax Appeals;
6. Provincial, city, municipal, and barangay
ordinances subject to limitations set forth in
the Local Government Code; and
7. Treaties or international agreements the
purpose of which is to avoid or minimize
double taxation.
Philippine Tax Laws and Taxes
1. National Internal Revenue Code of 1997 (Train
Law RA, 10963, as amended);
a. Income taxes (individual and corporate);
b. Estate and donor’s taxes;
c. value-added tax;
d. Other percentage taxes;
e. Excise tax; and
f. Documentary stamp tax
2. Tariff and Customs Code of 1978 (Train Law, as
amended);
a. Import duties; and
b. Export duties
3. Local Government Code of 1991 (RA 7160);
a. Real property tax;
b. Business taxes, fees and charges;
c. Professional tax;
d. Community tax; and
e. Tax on banks and other financial
institutions.
4. Special Laws
a. Motor Vehicle Law (RA 4136)
b. Private motor vehicle tax law (PD 1958)-
c. Philippine immigration act of 1940
d. Travel tax law
BIR Rulings are official position of the Bureau to
queries raised by taxpayers and other stakeholders
relative to clarification and interpretation of tax laws.
Revenue Bulletins (RBs) refer to periodic issuances,
notices and official announcements of the
Commissioner of Internal Revenue that consolidate
the Bureau of Internal Revenue’s position on certain
specific issues of law or administration in relation to
the provisions of the Tax Code, relevant to tax laws
and other issuances for the guidance of the public.
The BIR also issues Revenue Audit Memorandum
Orders (RAMOs).
Powers and Duties of the Bureau of Internal
Revenue
the chief officials of the Bureau are the Commissioner
and four (4) Deputy Commissioners. Its powers and
duties follows:
1. Assessment and collection of all national
internal revenue taxes, fees, and charges;
2. Enforcement of all forfeitures, penalties and
fines;
3. Execution of judgments in all cases decided in
its favor by the Court of tax Appeals and
ordinary courts; and
4. Administration of supervisory and police
powers conferred to it.
Powers of the Commissioner
1. Interpret tax laws and decide tax cases;
2. Obtain information, and to summon, examine
and take testimony of persons;
3. Make assessments and prescribe additional
requirements for tax administration and
enforcement.
INCOME AND INCOME TAXES
Income Defined and Distinguished from Capital
Income means all wealth, which flows into the
taxpayer other than a mere return of capital. It is
the return in money from one’s business, labor,
 or capital invested e.g. gains, profits, salary and
wages.
Income is also defined as the amount of money
coming to a person or corporation within a
specified time, whether as payment for services,
interest or profit from investment. Unless
otherwise specified, it means cash or equivalent.
Income may also be thought of as flow of the
fruits one’s labor.
Capital is a fund or property existing at one
distinct point of time. Income on the other hand
denotes of wealth during a definite period of
time. While is wealth, income is the service of
wealth.
Income tax defined based on nature, either gross
or net, realized in one taxable year.
Basic Taxation and Compliance and Workshop
TAXATION OF INDIVIDUALS
Classification of Individual Income Taxpayers
1. Citizen
a. Resident Citizens
 A citizen of the Philippines residing
therein. Under the 1987 Constitution 1, the
following are citizens of the Philippines.
 Those who are citizens of the Philippines
at the time of the adoption of this
Constitution
 Those whose fathers or mothers are
citizens of the Philippines;
 Those born before January 17, 1973, of
Filipino mothers, who elect Philippine
citizenship upon reaching the age of
majority; and
 Those who are naturalized in accordance
with the law.
b. Non-resident Citizen
 A citizen of the Philippines whose
physical presence abroad is with
a definite intention to reside therein –
to the satisfaction of the Commissioner of
Internal Revenue;
 A citizen of the Philippines who leaves the
Philippines during the taxable year to
reside abroad, either as an immigrant or
for employment on a permanent basis. A
good example would be
Overseas Contract Workers (OCW) or
Overseas Filipino Workers (OFW) who
were issued an overseas employment
permit. For purposes of income tax, a
seaman is considered an OCW2;
 A citizen of the Philippines who works
and derives income from abroad and
whose employment thereat requires him
to be physically present abroad most of
the time during the taxable year. “Most
of the time” means at least 183 days3;
 A citizen who has been previously
considered as a non-resident citizen
and who arrives in the Philippines at
any time during the taxable year to
reside permanently in the
Philippines shall likewise be treated as a
non- resident citizen for the taxable year
with respect to his income derived from
sources abroad until the date of his
arrival in the Philippines4. So, if the
taxpayer, who is previously considered a
non-resident citizen arrived in the
Philippines on July 1, 2022 with the
intention of residing permanently in the
Philippines, he/she shall be considered a
non-resident citizen for his income from
January 1 to June 30, 2022 (prior to his
date of arrival) and a resident citizen for
the rest of the year.
2. Alien
a. Resident Alien
 An alien who lives in the Philippines
with no definite intention as to his stay
(floating intention);
 One who comes to the Philippines for a
definite purpose which in its nature
would require an extended stay and to
 that end makes his home temporarily in
the Philippines;
 An alien who has acquired a residence
in the Philippines and retains his
status as such until he abandons the
same and actually departs from the
Philippines.
b. Non-resident
 An alien who comes to the Philippines for
a definite purpose which in its nature
may be promptly accomplished;
 One who may either be a: (a) NRA
engaged in a trade or business (NRAETB)
in the Philippines or (b) NRA not engaged
in trade or business (NRANETB) in the
Philippines. A NRA who shall come to the
Philippines and stay for an aggregate
of more than 180 days shall be deemed a
NRAETB.
1. Engaged in trade or business in the
Philippines
2. Not engaged in trade or business in
the Philippines
3. Employed by
a. Regional or area
headquarters and regional
operating headquarters of
multinational entities in the
Phils. that are engaged in
international trade.
b. Offshore banking units.
c. Petroleum contractors and
sub-contractors.
Kinds of Taxes in the Philippines
Business Taxes :
 Percentage Tax is a business tax imposed on
persons or entities who sell or lease goods,
properties, or services in the course of trade
or business whose gross annual sales or
receipts do not exceed P550,000 and are not
VAT-registered in the Philippines.
 Value Added Tax (VAT) is a business tax
imposed and collected from the seller or
vendor of services in the course of trade or
business on every importation, sale of
properties (real or personal), or lease of
goods and other properties (real or personal).
It is an indirect tax, thus, it can be passed on
to the buyer in the Philippines.
 Income Tax is a tax on all annual profits
arising from property, profession, trades or
offices, or a tax on a person’s income,
emoluments, profits, and the like in the
Philippines.
 Withholding Tax on Compensation is the
final tax withheld from individuals receiving
compensation income in the Philippines. It is
the employer’s responsibility to withhold and
pay these taxes on a monthly basis.
 Expanded Withholding Tax is a kind of
withholding tax which is prescribed only for
certain payors and is creditable against the
income tax due of the payee for the taxable
quarter year in the Philippines.
 Final Withholding Tax is a kind of
withholding tax which is prescribed only for
certain payors and is not creditable against
the income tax due of the payee for the
taxable year. Income Tax withheld constitutes
the full and final payment of the Income Tax
due from the payee on the said income in the
Philippines.
Withholding Tax on Government Money
Payments
 Withholding Tax on Government Money
Payments is the withholding tax withheld by
government offices and instrumentalities,
including government-owned or -controlled
corporations and local government units,
before making any payments to private
individuals, corporations, partnerships,
and/or associations in the Philippines.
Applicable Income Taxes and Tax Rates –
Individual

Generally, there are three (3) types of Income tax:

 Income tax or Regular Income Tax

 Final Withholding Tax (FWT) on

certain passive incomes

 Capital Gain Tax (CGT)

The applicable taxes for individuals depend on

several factors such as but not limited to:

 Classification of taxpayer

 Sources of Income

 Type of Income
Sources of Income

Taxpayer Tax Base Sources of Taxable Income

RC Net Income Within and Without

NRC,RA,NRA –ETB Net Income Within Only

NRA,NETB Gross Income Within Only

RC – Resident Citizen

NRC-Non-Resident Citizen

RA- Resident Alien

NRAET – Non-Resident Alien Engage in Trade or Business

NRANETB - Non-Resident Alien Not Engage in Trade or Business

Illustration 1

Jimin, individual taxpayer provided the following information for 2022

 Gross Income, Philippines – P5M

 Gross Business Income, Canada – 2M

 Gross Business Income, Singapore – 1M

 Business Expenses, Philippines – 3M

 Business Expenses, Canada – 1M

 Business Expenses, Singapore- 500K

Gross Income ____________________

Determine the Taxable Income Less: Business Expenses ___________________

a) Taxpayer is resident citizen Taxable Income _____________________

Gross Income ____________________

Less: Business Expenses ___________________ d) Taxpayer is resident alien engage in trade or

business
Taxable Income _____________________
Gross Income ____________________

Less: Business Expenses ___________________

b) Taxpayer is non-resident citizen
Taxable Income _____________________
Gross Income ____________________

Less: Business Expenses ___________________

e) Taxpayer is non-resident alien not engage in trade
Taxable Income _____________________
or business

Gross Income ___________________

c) Taxpayer is resident alien
Less: Business Expenses ___________________  Business Income

Taxable Income _____________________  Income from practice of profession

Types of Income  Income from sale /dealings of property

Ordinary or Regular Income –  Miscellaneous Income

 Compensation ( Salaries or Wages) (Tax Table Applicable – Table 2.2 Graduated Tax
Rate)

Table 2.2 Graduated Income Tax

Ordinary or Regular Income

Individuals Earning Purely Compensation

Income
• Taxed based on the graduated
income tax rates (Sched 2.2)
prescribed.
• Taxable income is the gross
compensation income less non-
taxable income/benefits such as
but not limited to:

1. 13th month pay and other

benefits (subject to
limitations)
2. De minimis benefits
3. Employee’s share in the SSS,
GSIS, PHIC, Pag-ibig
contributions
4. Union dues.
Individuals Earning Purely Compensation
Income.
Minimum wage earners (MWE) shall be
exempt from income tax:
• statutory minimum wage
• holiday pay
• overtime pay
• night shift differential pay and
• hazard pay

2. Husband & wife shall compute their

individual income tax separately based on their
respective taxable income;
Illustration No. 2
Answer  13 Month ( less than 90K non-taxable) =
P29,166.67
Gross:
Net Taxable Income = P 308,000
 P50,000 x 7 Mo’s = P 350,000
 13th Month ( P50,000 x 7mo’s / 12 mo’s) = Tax Due and Payable = P11,600

 C)

 P29,166.67 J Hope, married with two dependents ( 5yo and 2yo)

employed by X Company effective June 1,2022 with
Total Gross = P 379,167.67 the following info:
 Less: SSS/Phil/Pag  Gross Monthly Salary – P50,000
 ( P6K x 7 Mo’s) = P42,000
 Overtime ( June – Dec 2022 ) – P30,000
 13 Month ( less than 90K non-taxable) =
 Holiday Pay ( Jan – Dec 2022) – 10,000
P29,166.67
 SSS, Philhealth and Pagibig (monthly) - 6,000
Net Taxable Income = P 308,000
(EE’s share)
Tax Due and Payable = P11,600
 SSS Loan Monthly – 2,000
Table 2.2 Graduated Income Tax 2023 onwards
 Computer Loan Monthly – 1,000
B)
 Paluwagan monthly – 200
Jungkok, Single employed by X Company effective
June 1,2022 with the following info: Compute the Taxable Income and Income Tax Due to
the BIR
 Gross Monthly Salary – P50,000
Answer
 SSS, Philhealth and Pagibig (monthly) - 6,000
(EE’s share) Gross:

 SSS Loan Monthly – 2,000  P50,000 x 7 Mo’s = P 350,000

 Computer Loan Monthly – 1,000  Overtime and Holiday Pay = P40,000

 Paluwagan monthly – 200  13th Month ( P50,000 x 7mo’s / 12 mo’s) =

P29,166.67
Compute the Taxable Income and Income Tax Due to
the BIR Total Gross = P 419,167.67

Answer  Less: SSS/Phil/Pag

Gross:  ( P6K x 7 Mo’s) = P42,000

 P50,000 x 7 Mo’s = P 350,000  13 Month ( less than 90K non-taxable) =

P29,166.67
 13th Month ( P50,000 x 7mo’s / 12 mo’s) =
P29,166.67  Overtime and Holiday Pay = P 40,000

Total Gross = P 379,167.67 Net Taxable Income = P 308,000

 Less: SSS/Phil/Pag Tax Due and Payable = P11,600

 ( P6K x 7 Mo’s) = P42,000 D)

RM, married with two dependents ( 5yo and 2yo)
employed by X Company effective June 1,2022 with
the following info:
 Gross Monthly Salary – P50,000
C)
J Hope, married with two dependents ( 5yo and 2yo)
employed by X Company effective June 1,2022 with
the following info:

 SSS, Philhealth and Pagibig (monthly) - 6,000  Gross Monthly Salary – P50,000
(EE’s share)
 Overtime ( June – Dec 2022 ) – P30,000
 SSS Loan Monthly – 2,000
 Holiday Pay ( Jan – Dec 2022) – 10,000
 Computer Loan Monthly – 1,000
 SSS, Philhealth and Pagibig (monthly) - 6,000
 Paluwagan monthly – 200 (EE’s share)

Compute the Taxable Income and Income Tax Due to  SSS Loan Monthly – 2,000
the BIR
 Computer Loan Monthly – 1,000
Table 2.2 Graduated Income Tax 2018 – 2022
 Paluwagan monthly – 200
Illustration No. 2
Compute the Taxable Income and Income Tax Due to
B)
the BIR
Jungkok, Single employed by X Company effective
Gross:
June 1,2022 with the following info:
 P50,000 x 7 Mo’s = P 350,000
 Gross Monthly Salary – P50,000
 Overtime and Holiday Pay = P40,000
 SSS, Philhealth and Pagibig (monthly) - 6,000
(EE’s share)  13th Month ( P50,000 x 7mo’s / 12 mo’s) =
P29,166.67
 SSS Loan Monthly – 2,000
Total Gross = P 419,167.67
 Computer Loan Monthly – 1,000
 Less: SSS/Phil/Pag
 Paluwagan monthly – 200
 ( P6K x 7 Mo’s) = P42,000
Compute the Taxable Income and Income Tax Due to
the BIR  13 Month ( less than 90K non-taxable) =
P29,166.67
Gross:
 Overtime and Holiday Pay = P 40,000
 P50,000 x 7 Mo’s = P 350,000
Net Taxable Income = P 308,000
 13th Month ( P50,000 x 7mo’s / 12 mo’s) =
P29,166.67 Tax Due and Payable = P11,600
Total Gross = P 379,167.67 D)
 Less: SSS/Phil/Pag RM, married with two dependents ( 5yo and 2yo)
employed by X Company effective June 1,2022 with
 ( P6K x 7 Mo’s) = P42,000
the following info:
 13 Month ( less than 90K non-taxable) =
 Gross Monthly Salary – P50,000
P29,166.67
 SSS, Philhealth and Pagibig (monthly) - 6,000
Net Taxable Income = P 308,000
(EE’s share)
Tax Due and Payable = P11,600
 SSS Loan Monthly – 2,000
  Computer Loan Monthly – 1,000

 Paluwagan monthly – 200

Compute the Taxable Income and Income Tax Due to

the BIR

Table 2.2 Graduated Income Tax 2018 – 2022 &

2023 onwards

Types of Income

Passive Income –

 Interest Income

 Dividend Income

 Royalties

 Prizes; and

 Other Winnings

Unless exempt, other passive incomes derived from

Philippines but not in the list (if any) as well as
passive incomes abroad are subject to basic tax

FINAL WITHHOLDING TAX

TAX ATC
TAX TYPE DESCRIPTION
RATE IND CORP
Interest on Foreign loans payable to Non-Resident Foreign Corporation
WF 20% WC180
(NRFCs)
Interest and other income payments on foreign currency transactions/loans
WF 10% WC190
payable of Offshore Banking Units (OBUs)
Interest and other income payments on foreign currency transactions/loans
WF 10% WC191
payable of Foreign Currency Deposits Units (FCDUs)
Cash dividend payment by domestic corporation to citizens ans residents 10% W1202
WF
aliens/NRFCs 25% WC212
Property dividend payment by domestic corporation to citizens and resident 10% WI203
WF
aliens/NRFCs 25% WC213
Cash dividend payment by domestic corporation to NFRCs whose countries
WF 15% WC222
allowed tax deemed paid credit (subject to tax sparing rule)
Property dividend payment by domestic corporation to NFRCs whose countries
15% WC223
allowed tax deemed paid credit (subject to tax sparing rule)
Cash dividend payment by domestic corporation to non-resident alien engaged
WF 20% WI224
in Trade or Business within the Philippines (NRAETB)
WF Property dividend payment by domestic corporation to NRAETB 20% WI225
Share of NRAETB in the distributable net income after tax of a partnership
(except GPPs) of which he is a partner, or share in the net income after tax of
WF 20% WI226
an association, joint account or a joint venture taxable as a corporation of
which he is a member or a co-venturer
WF On other payments to NRFCs 25% WC230
Distributive share of individual partners in a taxable partnership, association,
WF 10% WI240
joint account or joint venture or consortium
All kinds of royalty payments to citizens, resident aliens and NRAETB (other
WF 20% WI250 WC250
than WI380 and WI341), domestic and resident foreign corporations
WF On prizes exceeding ₱ 10,000.00 and other winnings paid to individuals 20% WI260
Branch profit remittance by all corporations except PEZA/SBMA/CDA
WF 15% WC280
registered
On the gross rentals, lease and charter fees derived by non-resident owner or
WF 4.5% WC290
lessor of foreign vessels
On gross rentals, charter and other fees derived by non-resident lessor or
WF 7.5% WC300
aircraft, machineries and equipment
WF On payments to oil exploration service contractors/sub-contractors 8% WI310 WC310
Payments to non-resident alien not engage in trade or business within the
WF Philippines (NRANETB) except on sale of shares in domestic corporation and 25% WI330
real property
On payments to non-residnet individual/foreign corporate cinematographic film
WF 25% WI340 WC340
owners, lessors or distributors
WF Royalties paid to NRAETB on cinematographic films and similar works 25% WI341
Final tax on interest or other payments upon tax-free covenant bonds,
WF mortgages, deeds of trust or other obligations under Sec. 57C of the NIRC of 30% WI350
1997, as amended
Royalties paid to citizens, resident aliens and nraetb on books, other li terary
WF 10% WI380
works and musical compositions
WF Informers cash reward to individuals/juridical persons 10% WI410 WC410
WF Cash on property dividend paid by a Real Estate Investment Trust 10% W700 WC700
RM - Filipino Citizen has the following income

Big Hit Philippines RM

Salaries 1,000,000.00
 SSS/Phil/Pag 50,000.00
Cost of sales
Operating Expenses
Household Grocery 10,000.00
Computer Loan 50,000.00

What is the taxable income of RM if RM opted

What is the tax due and payable

RM - Filipino Citizen has the following income for 2022:

Big Hit Philippines RM Milk Ty Shop

Salaries 1,000,000.00
Business Revenue 3,000,000.00
SSS/Phil/Pag 50,000.00
Cost of sales 300,000.00
Operating Expenses 200,000.00
Household Grocery 10,000.00
Computer Loan 50,000.00

What is the taxable income of RM if RM opted to 8% Income rate option

What is the tax due and payable