QUARTERLY

COMPUTATION OF TAX

Individuals  Self-employed and professional

 Estates and trust
Declaration this quarter:
Gross sales/revenue this quarter xxxxx
Less: Total deductions this quarter (itemized or optional) xxxxx
Taxable income this quarter P xxxxx
Add: Declaration previous quarters xxxxx
Gross sales/revenue P xxxxx
Less: Total deductions (for itemized deductions only) xxxxx
Total taxable income to date P xxxxx
Multiply by 20% to 35% [2018 to 2022]; 15% to 35% [Jan 1, 2023 onwards]: %
Tax due P xxxxx
Less: Tax credits/payments (current and previous quarter) xxxxx
Tax payable this quarter P xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 134

 QUARTERLY
COMPUTATION OF TAX
Individuals: Graduated IT Rate (Starting January 1, 2018)
Declaration this quarter:

Sales/revenues/receipts/fees xxxxx

Less: Cost of sales/services (if availing itemized deductions) xxxxx

Taxable income this quarter P xxxxx

Gross income/(Loss from operation P xxxxx

Less: Allowable itemized deductions OR Optional standard deductions xxxxx

Net income/(Loss) this quarter xxxxx

Add: Taxable Income/(Loss from previous quarter) xxxxx

Non-operating income xxxxx

Amount received/share in income by partner xxxxx

Total Taxable Income to date P xxxxx

Multiply by 5% to 32%; 20% to 35% [2018 to 2022]; 15% to 35% [Jan 1, 2023 onwards]: %

Tax due P xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 135

 QUARTERLY
COMPUTATION OF TAX
Individuals: For 8% IT Rate (Starting January 1, 2018)
Declaration this quarter:
Sales/revenues/receipts/fees xxxxx
Add: Non-operating income xxxxx
Total Income for this quarter P xxxxx
Add: Total taxable income/(loss from previous quarter) xxxxx

Cumulative taxable income/(loss as of this this quarter xxxxx

Less: Allowable reduction of P250,000 xxxxx
Total Income/(Loss) to date P xxxxx
Multiplied by tax rate: 8% [Jan 1, 2018 onwards] %
Tax due P xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 136

 QUARTERLY
COMPUTATION OF TAX
Individuals: Tax Credits/Payments (Starting January 1, 2018)
Total Taxable Income to date
Declaration this quarter:

Prior year’s excess credits xxxxx

Tax payments for the previous quarter xxxxx

Creditable tax withheld for the previous quarter xxxxx

Creditable tax withheld per BIR Form No. 2307 for this quarter xxxxx

Tax Paid in Return previously Filed (if amended return) xxxxx

Foreign tax credits (if applicable) xxxxx

Other tax credits (if applicable) xxxxx

Total Tax Credits/Payments P xxxxx

Tax Payable/(Overpayment): Tax due less total tax credits P xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 137

 QUARTERLY
COMPUTATION OF TAX
Individuals: Penalties (Starting January 1, 2018)

Declaration this quarter:

Surcharge xxxxx
Interest xxxxx
Compromise xxxxx
Total Penalties P xxxxx

Total Amount Payable/(Overpayment):

Tax Payable/(Overpayment) plus
P xxxxx
Total Penalties

GCRO Module 120 eVer.2.0 JAN 2023 138

 QUARTERLY
COMPUTATION OF TAX

The gross income and deductions for the fourth quarter

shall be declared in the Annual Income Tax Return to
be filed on or before April 15 of the following year.

GCRO Module 120 eVer.2.0 JAN 2023 139

 Graduated IT with OSD

Gross Income ₱ xxxxx

Less: Allowable Deduction (Itemized or Optional) xxxxx
Net Taxable Income ₱ xxxxx
Multiply by Tax Rate (0% to 35%) %
Income Tax Due: ₱ xxxxx
Less: Tax Withheld (per BIR Form 2307) _______
Income Tax Payable: ₱ xxxxx

Note: Use BIR Form 1701A Annual Income Tax Return for Individuals Earning
Income PURELY from Business/Profession (Those under the graduated income tax
rates with Optional Standard Deduction (OSD) as mode of deductions OR those
who opted to avail of the 8% flat income tax rate) January 2018 version

GCRO Module 120 eVer.2.0 JAN 2023 140

 8% option

Gross Sales ₱ xxxxx

Gross Receipts xxxxx
Total Sales/Receipts ₱ xxxxx
Less: Amount allowed as deduction under Sec.
24(A)(2)(b) 250,000.00
Taxable Income: ₱ xxxxx
Tax Due: 8% of Taxable Income ₱ xxxxx
Note: Use BIR Form 1701A Annual Income Tax Return for Individuals Earning Income PURELY
from Business/Profession (Those under the graduated income tax rates with Optional
Standard Deduction (OSD) as mode of deductions OR those who opted to avail of the 8%
flat income tax rate) January 2018 version

GCRO Module 120 eVer.2.0 JAN 2023 141

 QUARTERLY
COMPUTATION OF TAX
Non-Individuals: Corporations – Quarterly income tax is computed as follows:
Declaration this quarter:
Gross Sales/revenues P xxxxx

Less: Cost of sales/service xxxxx

Gross Income P xxxxx

Add: Other non-operating and taxable income xxxxx

Total Gross Income P xxxxx

Less: Deductions xxxxx

Total taxable income this quarter P xxxxx

Add: Taxable income from previous quarter xxxxx

Total taxable income to date P xxxxx

Multiplied by the tax rate (except MCIT Rate) %

Income tax other than MCIT P xxxxx

Less: Share of other agencies (RA 7916/8748) xxxxx

Minimum Corporate Income Tax P xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 142

 QUARTERLY
COMPUTATION OF TAX
Non-Individuals:
Tax Due:
Tax on transactions under regular rate
(normal IT or MCIT whichever is higher) P xxxxx
Less: Unexpired excess of prior year’s MCIT
over normal IT (deductible if the quarterly xxxxx
tax due is the normal rate)
Balance P xxxxx
Add: Tax due to the BIR on transactions
under Special Rate
xxxxx
Aggregate Income Tax Due P xxxxx
Less: Tax Credits/Payments xxxxx
Tax still due ₱ xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 143

 QUARTERLY
COMPUTATION OF TAX

Unless otherwise provided in the NIRC, the

tax is twenty five(25%) on taxable income
effective January 1, 2009
or
one percent (1%) MCIT
whichever is higher.

GCRO Module 120 eVer.2.0 JAN 2023 144

 QUARTERLY
COMPUTATION OF TAX
Partnerships

General Professional Partnerships

Declaration this quarter:
Gross receipts this quarter P xxxxx
Less: Total deductions this qtr. xxxxx
(direct cost only or optional deduction of 40%)
Taxable income this quarter P xxxxx
Add: Declaration previous qtrs.
Gross receipts P xxxxx
Less: Total deductions xxxxx
(direct cost only or optional deduction of 40%)
Total taxable income previous qtr. P xxxxx
Total taxable income to date xxxxx
Income tax due EXEMPT

GCRO Module 120 eVer.2.0 JAN 2023 145

 QUARTERLY
COMPUTATION OF TAX
Individual Partner to the above general professional partnership
Net income of the general professional partnership date P xxxxx
Multiplied by profit and loss/sharing ratios %
Distributive share of the partner
net income or net taxable income P xxxxx
Less: Personal and additional exemption xxxxx
(P50,000 + P25,000/dependent x maximum of 4
[until Dec. 31, 2017])
Taxable Income multiplied by tax rate %
[5% to 32% under Sec. 24(A)(1)(c) then 20% to 35% from
Jan 1, 2018 to Dec. 31, 2022]

Tax due P xxxxx

Less: Tax credits/payments (current and previous qtr.) xxxxx
Tax due this qtr. P xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 146

 QUARTERLY
COMPUTATION OF TAX
General Partnership
Declaration this quarter:
Gross sales/revenues P xxxxx
Less: Total deductions xxxxx
Taxable income this quarter P xxxxx
Add: Declaration of previous quarter:
Gross sales/revenues P xxxxx
Less: Total deductions xxxxx
Total taxable income previous quarter xxxxx
Total taxable income to date P xxxxx
Multiplied by the tax rate 25%
Income tax due P xxxxx
Less: Tax payments/credits xxxxx
Income tax payable/refundable P xxxxx
GCRO Module 120 eVer.2.0 JAN 2023 147
 Computation of
ANNUAL INCOME TAX
Individuals
Compensation earners
Resident citizens
Total gross compensation income from sources P xxxxx
within and/or outside the Phil. (all sources)
Less: Personal and additional exemptions premiums xxxx
on health/hospitalization insurance
(if aggregate income of husband and wife does not exceed
P250,000 [until Dec. 31, 2017])
Taxable compensation income P xxxxx
Multiplied by tax rates: 5% to 32% under Sec. 24(A)(1)(c)
then 20% to 35% from Jan 1, 2018 to Dec. 31, 2022] %
Tax due P xxxxx
Less: Tax withheld per BIR Form 2316 xxxxx
Tax payable (refundable) P xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 148

 Computation of
ANNUAL INCOME TAX
Individuals
Compensation earners
Resident citizens
Starting January 1, 2018:
Gross Sales/Receipts ₱ xxxxx
Less: Cost of Sales xxxxx
Gross Income ₱ xxxxx
Less: Operating Expenses xxxxx
Taxable Income ₱ xxxxx
Tax Due:
On excess (Pxxxxx - P250,000) x 20%
to 35% ₱ xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 149

 Computation of
ANNUAL INCOME TAX
Individuals
Non-resident citizen
Total gross business income P xxxxx
from sources within the Phils. (all sources)
Less: Personal and additional exemptions
premiums on health hospitalizations
[until Dec. 31, 2017] xxxx

Taxable business income P xxxxx

Multiplied by tax rates: 5% to 32% %
[under Sec. 24(A)(1)(c)]
Tax due P xxxxx
Less: Tax withheld xxxxx
Tax payable (refundable) P xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 150

 Computation of
ANNUAL INCOME TAX
Individuals
Non-resident alien engaged in business
Total gross compensation income P xxxxx
from sources within the Phils. (all sources) xxxx
Less: Personal
(subject to reciprocity clause until Dec. 31, 2017)
Taxable compensation income P xxxxx
Multiplied by tax rates: 5% to 32% under
Sec. 24(A)(1)(c) then 20% to 35% from ______ %
Jan 1, 2018 to Dec. 31, 2022]
Tax due P xxxxx
Less: Tax withheld xxxxx
Tax payable (refundable) P xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 151

 Computation of
ANNUAL INCOME TAX
Individuals

Non-resident aliens not engaged in trade or business:

Gross income from sources within the Philippines P xxxxx

Multiplied by the tax rate 25%
Income tax due P xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 152

 Computation of
ANNUAL INCOME TAX
Individuals
Alien Employed by RO and RA Headquarters of Multinational Corporation
Gross compensation income from P xxxxx
within the Philippines
Multiplied by graduated tax rate ____%
(20% to 35%)*
Income tax due P xxxxx

Aliens employed by offshore banking units

Gross compensation Income P xxxxx
received from w/in the Phils.
Multiplied by graduated tax rate _______%
(20% to 35%)*
Income tax due P xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 153

 Computation of
ANNUAL INCOME TAX
Individuals
Aliens employed by petroleum service contractors and subcontractors
Gross compensation received
from within the Philippines P xxxxx
Multiplied by graduated tax rate
(20% to 35%) [previously 15% preferential rate] __%
Income tax due P xxxxx

Starting January 1, 2018:

Compensation Income ₱ xxxxx
Less: Non-taxable 13th Month Pay and other benefits (max) xxxxx
Taxable Compensation Income ₱ xxxxx
Tax Due: ₱ xxxxx
On excess: (₱xxxxx – tax due) x 32% xxxxx
Total tax due ₱ xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 154

 Computation of
ANNUAL INCOME TAX
Individuals
Self-employed and professionals (until Dec. 31, 2017)
Annual computation of income tax:

Gross sales/revenue P xxxxx

Less: Total deductions xxxxx
(direct cost only or optional of 40%)
Net income P xxxxx
Less: Total exemptions (or excess thereof over
compensation income) xxxxx
Net taxable income P xxxxx
Multiplied by tax rate - 5% to 32% %
[under Sec. 24(A)(1)(c) ]
Tax due P xxxxx
Less: Tax credits/payments xxxxx
Tax Payable/refund P xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 155

 Computation of
ANNUAL INCOME TAX
Individuals
Self-employed and professionals availing of 8% Option
(starting January 1, 2018)
Annual computation of income tax:
Total Sales P xxxxx
Less: Cost of Sales xxxxx
Gross Income P xxxxx
Less: Operating Expenses xxxxx
Taxable Income P xxxxx
Income Tax Due:
Tax due under graduated rates P xxxxx
Less 8% income tax previously paid xxxxx
Annual Income Tax Payable P xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 156

 Computation of
ANNUAL INCOME TAX
Individuals
Estates and Trusts (until Dec. 31, 2017)
Personal exemption of an estate or trust is Twenty Thousand Pesos (20,000)
only, while the tax rate is the rate for individuals under Section
24(A)(1)(c) of the NIRC.
Computation of Income Tax is as follows:
Gross income P xxxxx
Less: Deductions (direct cost only or optional deduction of 40%) xxxxx
Net income P xxxxx
Less: Exemptions (P20,000.00 only) xxxxx
Taxable income xxxxx
Multiplied by the tax rate in Sec. 24(A)(1)(c) %
Income tax due xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 157

 Computation of
ANNUAL INCOME TAX
Non-Individuals
Corporations
 Domestic Corporations-the computation of the income tax due is as follows:
Regular Domestic Corporations:
Annual Computation of Income Tax P xxxxx

Gross income from sources within and outside the

Philippines (all sources)
Less : Deduction from gross income (all sources) xxxxx
Taxable net income P xxxxx

Multiplied by the tax rate 25 %

Income tax due P xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 158

 Computation of
ANNUAL INCOME TAX
Non-Individuals
Minimum Corporate Income Tax (MCIT)
Gross income P xxxxx
Multiplied by the tax rate 1%
MCIT due P xxxxx
Tax due or MCIT, whichever is higher
Less credit/payments Pxxxxxx
Tax payable/refundable P xxxxxx
A minimum corporate income tax of one percent (1%) of the gross income as of the
end of the taxable year, is hereby imposed on a corporation, beginning on the
fourth taxable year immediately following the year in which such corporation
commenced its business operations, when the minimum income tax is greater than
the regular/ normal income tax computed at the end of the taxable year.

GCRO Module 120 eVer.2.0 JAN 2023 159

 Computation of
ANNUAL INCOME TAX

Any excess of the MCIT over the normal income tax as

computed at the end of taxable year shall be carried
forward and credited against the normal income tax
for the three (3) immediately succeeding taxable
years.

GCRO Module 120 eVer.2.0 JAN 2023 160

 Computation of
ANNUAL INCOME TAX
Non-Individuals
Non-regular Corporations - Proprietary Educational Institution

Gross income from school operation xxxxx

Less: Deduction from gross income xxxxx
Taxable income P xxxxx
Multiplied by the tax rate 1%
Income tax due P xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 161

 Computation of
ANNUAL INCOME TAX
Non-Individuals
 Foreign Corporations
Unless otherwise provided in the NIRC the rate of twenty five percent
(25%) applies on the total income received from sources within the
Philippines.

Resident Foreign Corporation

P xxxxx
Gross income from Philippines sources
Less: Deduction xxxxx
Taxable income P xxxxx
Multiplied by the tax rate 25%
Income tax due P xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 162

 Computation of
ANNUAL INCOME TAX
Non-Individuals
Minimum Corporate Income Tax (MCIT)
Gross Income P xxxxx
Multiplied by the tax rate 1%
MCIT Due P xxxxx
A MCIT of one percent (1%) of the gross income as of the end of
the taxable year, is hereby imposed on a corporation, beginning
on the fourth taxable year immediately following the year in
which such corporation commenced its business operations, when
the minimum income tax is greater than the regular/normal income
tax computed at the end of the taxable year.

GCRO Module 120 eVer.2.0 JAN 2023 163

 Computation of
ANNUAL INCOME TAX

Any excess of the MCIT over the normal income tax

as computed at the end of taxable year shall be
carried forward and credited against the normal
income tax for the three (3) immediately
succeeding taxable years.

GCRO Module 120 eVer.2.0 JAN 2023 164

 Computation of
ANNUAL INCOME TAX

International Air Carrier

Taxed at the rate of two and one-half percent (2 1/2%)
on their Gross Philippine Billings. Gross Philippine
Billings refers to the amount of gross revenue
derived from carriage of persons, excess baggage,
cargo and mail originating from the Philippines in a
continuous and uninterrupted flight, irrespective of
the place of sale or issue and the place of payment of
the ticket or passage document.

GCRO Module 120 eVer.2.0 JAN 2023 165

 Computation of
ANNUAL INCOME TAX

International Shipping
‘Gross Philippine Billings’ means gross revenue
whether cargo or mail originating from the Philippines
up to final destination, regardless of the place of
sale or payments of the passage or freight documents.
Computation of Tax:

Gross Philippine Billings P xxxxx

Multiplied by the tax rate 2 ½ %
Tax due P xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 166

 Computation of
ANNUAL INCOME TAX

Non-Resident Foreign Corporation

Gross income from Philippine sources P xxxxx

Multiplied by the tax rate 25%

Income tax due P xxxxx

GCRO Module 120 eVer.2.0 JAN 2023 167