Fundamentals of Accountancy, Business,

and Management 2
Accountancy, Business, and Management

Name: Date:

10.2 Introduction to Taxation

Principles and Purpose of Taxation 30 minutes

Learning Competency
This activity aims to target the following DepEd competency:
Explain the principles and purposes of taxation (ABM_FABM12-IIh-j-19).

Instructions

A table defining and illustrating the principles and purposes of taxation

Product

In your own understanding, provide 2 to 3 sentences defining the following concepts and
give an example of each.

Concept Definition Example

Principle of
Reciprocity

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Fundamentals of Accountancy, Business,
and Management 2
Accountancy, Business, and Management

Power of Taxation

Primary Purpose

Lesson 10.2: Introduction to Taxation 2

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Secondary Purpose

Suggested Rubric for Grading

The rubric below is a suggested one. Your teacher may modify the rubric based on your
needs. Consult your teacher for the final rubric.

Performance Levels

Criteria Suggested
1 2 3 Score
Weight
Beginning Average Advanced
Proficiency Proficiency Proficiency

Understanding The definitions reflect The definitions reflect The definitions

of concepts a developing a sufficient reflect a mastery of

understanding of the understanding of the the ideas and ×3
ideas and concepts ideas and concepts concepts discussed.
discussed. discussed.

Authenticity of The examples The examples The examples

examples provided are provided are provided are

inauthentic and do somewhat authentic authentic and
not reflect situations and fairly reflect excellently reflect ×2
and scenarios that situations and situations and
happen in real life. scenarios that happen scenarios that
in real life. happen in real life.

Total Possible Score 15

Lesson 10.2: Introduction to Taxation 3

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Fundamentals of Accountancy, Business,
and Management 2
Accountancy, Business, and Management

Teacher’s Feedback
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Lesson 10.2: Introduction to Taxation 4

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Fundamentals of Accountancy, Business,
and Management 2
Accountancy, Business, and Management

Name: Date:

10.2 Introduction to Taxation

Income Tax on Compensation 30 minutes

Learning Competencies
This activity aims to target the following DepEd competencies:
● Prepare the BIR forms. (ABM_FABM12-IIh-j-18)
● Compute the gross taxable income and tax due. (ABM_FABM12-IIh-j-21)

Instructions

Accomplished BIR Form and calculations of taxable income and tax due
Product

Answer the following questions. You may refer to the table provided.

Amount of Taxable Income Tax Due

Over But not Over

- ₱250,000 Nil

₱250,000 ₱400,000 20% of the excess over ₱250,000

₱400,000 ₱800,000 ₱30,000 PLUS 25% of the excess over ₱400,000

₱800,000 ₱2,000,000 ₱130,000 PLUS 30% of the excess over ₱800,000

₱2,000,000 ₱8,000,000 ₱490,000 PLUS 32% of the excess over ₱2,000,000

Above ₱8,000,000 ₱2,410,000 PLUS 35% of the excess over ₱8,000,000

Lesson 10.2: Introduction to Taxation 5

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Fundamentals of Accountancy, Business,
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Accountancy, Business, and Management

1. Camelle is a rank and file employee. Her taxable income for the year ended 2022
amounted to ₱267,000.00. How much is her tax due for the year?

2. The following pertains to the compensation income of Jerome for 2022. He only
has compensation as the source of his income:

Gross Income ₱678,000

SSS contribution 13,500
Philhealth contribution 13,500
Pag-ibig contribution 1,200

How much is his taxable income for the year?

3. The following pertains to the compensation income of Rose for 2022. She only
has compensation as the source of her income:

Gross Income ₱678,000

SSS contribution 13,560
Philhealth contribution 21,600
Pag-ibig contribution 1,200

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Accountancy, Business, and Management

How much is her income tax due for the year?

4. Choose one from among the taxpayers presented in this activity. Accomplish a
BIR Form 2316 for them. You may use this template. Feel free to provide other
information. However, ensure that those necessary for the computation of tax
due are accurate.

Suggested Rubric for Grading

The rubric below is a suggested one. Your teacher may modify the rubric based on your
needs. Consult your teacher for the final rubric.

Performance Levels

Criteria Suggested
1 2 3 Score
Weight
Beginning Average Advanced
Proficiency Proficiency Proficiency

Correctness None of the answers Some of the answers All of the answers
are correct. are correct. are correct. ×3

BIR Form None of the fields Most fields necessary All fields necessary
necessary for the for the computation for the computation
computation of tax of tax due are of tax due are ×2
due are completed completed and completed and
and correct. correct. correct.

Total Possible Score 15

Teacher’s Feedback
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Lesson 10.2: Introduction to Taxation 7