Activity Sheet on Business and Income Taxation

Name: __________________________________________ Date: _______________ Score: ________

Activity 1. Answer the activity below to recall previous lesson. (10 points)

MASAGANA ENTERPRISE
BANK RECONCILIATION STATEMENT
As of December 30, 2022

Balance per Bank ₱22,907.50 Balance per Book ₱21,336.00

Add: Deposit In Transit 1,814.00 Add: Book Error 90.00
Total 24,721.50 Total 21,426.00
Less: Outstanding Checks 3,470.50 Less: Debit Memo 175.00
Adjusted Bank Balance ₱21,251.00 Adjusted Book Balance ₱21,251.00
Activity 2: Arrange the scrabble tiles below to form a word. All letters will be used. Spell out the word inside the
blank tiles. (10 points)

a. Define the word formed from the scrabble tiles?

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b. Why do taxpayers pay taxes? Give at least 3 purposes of taxation.
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Activity 3. Complete the crossword puzzle below to identify important terms on taxation.
Answer the following questions below. (10 points)
Activity 4. Refer to Module 3 to complete the table below by supplying the appropriate column with correct
classification, characteristics, example and their taxable income. (15 points)

Classification of Individual Characteristics Example Taxable Income

Taxpayers
Resident Citizen (RC)
Non-Resident Citizen (NRC)
Resident Alien (RA)
Non-Resident Alien
Engaged with
Trade/Business (NRA-ETB)
Non-Resident Alien NOT
Engaged with
Trade/Business (NRA-NETB)
Filipino citizen who
lives/resides in the
Philippines.
Filipino citizen but does not
reside in the Philippines.
A citizen of another foreign
country but resides in the
Philippines during the
taxable year.
A citizen of another foreign
country and does not
reside in the Philippines
BUT stays in the country for
more than 180 days.
A citizen of another foreign
country and does not
reside in the Philippines
BUT stays in the country for
less than 180 days.
Mangyan, Muslim, Income earned within and
Batangeño, Visaya outside the PH
OFWs Income generated within
the PH.
An American who lives in Income generated within
the Philippines, but still the PH.
an American citizen.
An Italian CEO who Income generated within
supervises operation of the PH.
manufacturing for 7
months.
A korean pop group who Gross income generated
have a 2-day dance within the PH is taxed
concert in MOA. 25% Final Tax

Guide questions: (20points)

1. What are the classification of individual taxpayers?

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2. Why do we need to know the characteristics of each individual taxpayers?

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3. How do you compute for the taxable income?

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4. How important it is to pay your taxes on time?
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Activity 4. Refer to module 3. Choose from the box the allowable deductions on pure compensation income and
from business income (10 points).

Business Expenses SSS Contribution PhilHealth

Pag-ibig contributions Interest Expense Losses

Charitable contributions GSIS contributions

Compensation Income Business Income

SSS Contribution Business Expenses
Pag-ibig Contribution Interest Expense
Philhealth Charitable Contributions
GSIS Losses
Activity 5. Identify whether the following individuals are resident citizen (RC), non-resident citizen (NRC), resident
alien (RA), non-resident alien-engage in trade (NRA-ETB) or non-resident alien-not engage in trade (NRA-NETB). The
taxable calendar year is December 2020. (10 points)

RA 1. Ryan Bang is a Korean who is a TV Actor in the Philippines since 2010 and had recently launched a
restaurant business.
RC 2. Armando, a native Igorot, who works at Ifugao Textile Corporation as a weaver from January 2020 to
June 2022.
NRA-NETB 3. David, an American hair stylist, conducted a 1-day income-generating seminar for Filipino hair stylist in
Balanga, Bataan.
NRC 4. Ben, a Filipino and a renowned chef in Singapore and resides there for a decade now is closely
associated with three 5-star restaurants there.
NRA-NETB 5. Lee Ji-Eun, a Korean singer-songwriter performed a 2-day concert in the Philippines.
RC 6. Vico Sotto, a Pasig City Mayor, travelled to other provinces to benchmark best practices of frontliners.
NRA-ETB 7. Lucas, a French national, who stayed for a corporate project in Bataan from February to October 2020.
RC 8. Alex Gonzales, a Filipino and popular Lumad vlogger, travels abroad for a two-month training.
NRA-ETB 9. Nikita, a Japanese national, stayed in the Philippines from January 2020 to March 2021.
NRC 10. Sally, a Filipino domestic worker who works for an Australian family had her one-month vacation in the
Philippines with her employers.

Activity 6. In 5 sentences, generalize the lesson by

interpreting the given flow chart. (10 points)

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