CJ MARIE CADENAS

DEDUCTIONS FROM GROSS INCOME

DEFINITION
WHAT IS A BUSINESS?
BUSINESS EXPENSE VS. PERSONAL EXPENSE
GENERAL PRINCIPLES OF DEDUCTIONS FROM GROSS INCOME

REGULAR ALLOWABLE ITEMIZED DEDUCTIONS

ITEMIZED DEDUCTIONS FROM GROSS INCOME
INTEREST EXPENSE
DEDUCTIBLE AMOUNT OF INTEREST EXPENSE
DEDUCTIBILITY OF DISCOUNT OR PRE-DEDUCTED INTEREST
OPTIONAL TREATMENT OF INTEREST EXPENSE
OTHER DEDUCTIBLE INTEREST EXPENSE
EXAMPLES OF NON-DEDUCTIBLE INTEREST
TAXES
EXAMPLE OF DEDUCTIBLE TAXES
FOREIGN INCOME TAX
LOSSES
REQUISITES FOR THE DEDUCTION OF LOSSES
BAD DEBTS
REQUISITES OF CLAIM FOR DEDUCTION OF BAD DEBT
DEPRECIATION
DEPRECIATION METHODS
SPECIAL RULES ON DEPRECIATION
DEPLETION
COMMON RULES FOR BOTH MINING AND OIL OPERATIONS
CHARITABLR AND OTHER CONTRIBUTIONS
REQUISITES OF CLAIM FOR DEDUCTION ON CONTRIBUTIONS
CLASSIFICATION OF CONTRIBUTIONS
CONTRIBUTION TO PENSION TRUSTS
REQUISITES OF DUDUCTIBILITY OF PENSION EXPENSE
RESEARCH AND DEVELOPMENT (R&D) COSTS
TAX TREATMENT OF R&D COSTS
SPECIAL ALLOWABLE ITEMIZED DEDUCTIONS
DEFINITION
SPECIAL ALLOWABLE DEDUCTIONS

OPTIONAL STANDARD DEDUCTIONS

DEFINITION
WHO CAN CLAIM DSD?
MANDATORY ITEMIZED DEDUCTIONS
PERCENTAGE OF OPTIONAL STANDARD DEDUCTIONS
RULES ON DETERMINATION OF OSD FOR INDIVIDUAL TAXPAYERS
NON-OPERATING INCOME
RULES ON DETERMINATION OF OSD FOR CORPORATE TAXPAYERS
WHAT CONSTITUTES COST OF SERVICES?
OSD FOR GENERAL PROFESSIONAL PARTNERSHIPS
OPTIONAL STANDARD DEDUCTION AND NOLCO
OPTIONAL STANDARD DEDUCTIONS AND NET CAPITAL LOSS CARRY OVER
WHEN TO INDICATE THE OPTION TO THE OSD?

PRO-FORMA COMPUTATIONS OF INCOME TAX OF INDIVIDUALS INCLUDING

OF HUSBAND AND WIFE
INDIVIDUAL TAXES ON PERSONAL INCOME
COMPENSATION TAX RATES
REPEAL OF THE PERSONAL EXEMPTION
TAXPAYER SUBJECT TO PROGRESSIVE TAX
CLASSIFICATION OF INDIVIDUAL INCOME TAXPAYERS
 MELYN ROSE CABARLES
PURE COMPENSATION INCOME EARNER
EMPLOYEES WITH NO OTHER INCOME
ADJUSTMENT RETURN
CONSOLIDATED INCOME TAX RETURN
PURE BUSINESS AND/OR PROFESSIONAL INCOME EARNER
EXCESS QUARTERLY ESTIMATED TAX
MIXED INCOME EARNER
THE 8% INCOME TAX OPTION
BUSINESS TAX: A BASIC OVERVIEW
PURE BUSINESS OR PROFESSIONAL INCOME EARNER
MIXED INCOME EARNER
INTERIM TRANSITION TO THE VALUE ADDED TAX
TAXABLE ESTATES AND TRUSTS
CONSOLIDATION OF TWO OR MORE TRUSTS
EMPLOYEE TRUST FUNDS
REQUISITE OF EXEMPTION OF EMPLOYEE’S TRUST
RETURN OF MARRIED TAXPAYERS
INDIVIDUALS WHO PERSONAL EQUITY RETIREMENT ACCOUNTS (PERA)
RETURN OF PERSONS UNDER DISABILITY
SIGNATURE IN THE RETURN IS PRESUMED CORRECT
ATTACHMENT TO THE ANNUAL INCOME TAX RETURN
FILING OF INDIVIDUAL INCOME TAX RETURN
INSTALLMENT PAYMENT OF THE REGULAR INCOME TAX
INDIVIDUALS WHO SHALL FILE INCOME TAX RETURN
INDIVIDUALS NOT REQUIRED TO FILE INCOME TAX RETURN
AMENDMENT OF INCOME TAX RETURN

PRO-FORMA COMPUTATION OF INCOME TAX OF NON-INDIVIDUAL

TAXPAYERS
NON-INDIVIDUAL TAXPAYERS
REGULAR INCOME TAXATION: Special Corporations
CORPORATE INCOME TAXATION
WHAT ARE CORPORATIONS?
GENERAL CLASSIFICATION AND TAXATION OF CORPORATIONS
SPECIAL CORPORATIONS
SUB-CLASSIFICATION OF CORPORATE INCOME TAXPAYERS
THE FOLLOWING SECTION DISCUSSES IN DETAIL RELEVANT TAX RULES
EXEMPT SPECIAL CORPORATION
THE CLASSIFICATION RULE
EXEMPT CORPORATIONS UNDER THE NIRC
REQUISITES FOR EXEMPTION OF NON-STOP, NON-PROFIT
CORPORATION
EXEMPTION TO THE CLASSIFICATION RULE: NON-PROFIT EDUCATIONAL
INSTITUTIONS
CERTIFICATE OF TAX EXEMPTION RULING
GOVERNMENT AGENSIES AND INSTRUMENTALITIES
GOVERNMENT-OWNED AND CONTROLLED CORPORATIONS (GOCCS)
WHAT IS COOPERATIVES?
CLASSIFICATION OF REGISTERED COOPERATIVES FOR TAXATION
PURPOSES
TAXABILITY OF COOPERATIVES FOR TAXATION PURPOSES
TAXABILITY OF COOPERATIVES TO INTERNAL REVENUE TAX
REPORTING REQUIREMENTS FOR EXEMPTS CORPORATIONS
SPECIAL DOMESTIC CORPORATIONS
PRIVATE EDUCATIONAL INSTITUTION IN NON-PROFIT HOSPITAL
SUMMARY OF TAX RULES ON EDUCATIONAL INSTITUTIONS AND
HOSPITALS
FOREIGN/EXPANDED CURRENCY DEPOSIT UNIT
 RHEA ANGELA CABRISTANTE
Continuation of REGULAR INCOME TAXATION: Special Corporations
AUTHORIZED TRANSACTIONS OF FCDU
DISTINCTION OF FCDU, OBU AND EFCDU
TAX ON EFCDUS AND OBUS’
TAXATION OF FCDUS
SUMMARY OF TAX RULES ON FCDUS/ EFCDUS/ OBUS
TAX ON INCOME OF DEPOSITORS UNDER THE EFCDUS
TAX ON REGULAR BANKING UNITS OR RBUS
ALLOCATION OF COST AND EXPENSES OF BANKS
PEZA OR BOI-REGISTERED ENTERPRISES
TAXABILITY OF BOI OR PEZA-REGISTERED ENTERPRISES
TIEZA-REGISTERED ENTERPRISES
SPECIAL RESIDENT FOREIGN CORPORATIONS
OFFSHORE BANKING UNITS AND EXPANDED FCDUS
REGIONAL AREA HEADQUARTERS AND REGIONAL OPERATING
HEADQUARTERS OF MULTINATIONAL COMPANIES
TAXATION OF RHQS AND RQHQS
INTERNATIONAL CARRIERS
MEANING OF GROSS PHILLIPINE BILLINGS
GROSS PHILIPPINE BILLINGS
RULE ON TRANSSHIPMENTS OR INTERRUPTED FLIGHTS OR VOYAGES
TREATY OR RECIPROCITY CONSIDERATION
SPECIAL NON-RESIDENT FOREIGN CORPORATION
NON-RESIDENT CINEMATOGRAPHIC FILM OWNER, LESSOR OR
DISTRIBUTOR
NON-RESIDENT LESSOR OF VESSELS CHARTERED BY PHILIPPINE
NATIONALS
NON-RESIDENT OWNER OR LESSOR OF AIRCRAFT, MACHINERIES AND
OTHER EQUIPMENT
REGULAR INCOME TAXATION: Regular Corporations
THE REGULAR CORPORATE INCOME TAX
CORPORATE TAX SCHEMES ON REGULAR TAXATION
THE CORPORATE GROSS INCOME TAX
THE MINIMUM CORPORATE INCOME TAX
TIMING OF IMPOSITION OF MCIT
MCIT AND RCIT: BASIC APPLICATION
ANNUAL RCIT AND MCIT: INTEGRATE ILLUSTRATION
RELIEF FROM THE MINIMUM CORPORATE INCOME TAX
REPORTING FOR CORPORATIONS SUBJECT TO REGULAR TAX
THE IMPROPERLY ACCUMULATED EARNINGS TAX (IAET)
 SCOPE OF IAET
EXEMPT APPROPRIATIONS OF EARNINGS
WHAT IS REASONABLE APPROPRIATION OF EARNINGS?
INSTANCES OF REASONABLE ACCUMMULATIONS OF EARNINGS
PRIMA FACIE INSTANCES OF IMPROPER ACCUMULATION OF EARNINGS
ENTITIES PRESUMED IMPROPERLY ACCUMULATING EARNINGS
IAET IS A PENALTY TAX
IAET EXEMPT ENTITIES UNDER THE NIRC
OTHER ENTITIES EXEMPT FROM IEAT
PERIOD OF PAYMENT OF DIVIDENT OR IAET
BRANCH PROFIT REMITTANCE TAX
SCOPE OF THE BRANCH PROFIT REMITTANCE TAX
REMITTANCE FROM PRIOR YEAR EARNINGS IS STILL TAXABLE
INDIRECT REMITTANCE
BRANCH CAPITAL ACCOUNTS