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JUNIO, CPA Notre Dame of Midsayap College Midsayap, Cotabato

authorized for such types of income by the NIRC or other special laws.means the pertinent items of gross income. less the deductions and/or basic personal and additional exemptions. and special deductions. if any. • .

Compensation income Less: Personal exemptions Health insurance paid Net taxable compensation Business income Less: Business expenses allowed Net Business income Add: Capital gains Passive income without Total taxable income xx xx xx xx xx xx xx xx xx xx xx xx .

The income tax rate to be used is the normal income tax rate as provided by Section 24(A) of the NIRC. .•Is based on his/her net taxable income.

Mr.000 24.000 Mrs.000 is derived from the couple’s conjugal property.000 Withholding taxes 34.500 Rent income of P120.Mr. . Cruz Compensation income P300. Cruz have 4 qualified dependent children. Cruz P180. and Mrs.

Cruz Mrs.000 130.000 Less: Personal exemptions Basic 50.000 Additional 100.000 50.000) (24.000 Add: Rent Income 60.000 60.000 P180.000 OSD (40%) (24. Cruz Compensation income P300.000 Taxable compensation 150.000 .000) Total taxable income P186.Mr.000 P166.

Mr.500 Mrs.000 Less: Withholding tax 34.500 Income tax on excess (25%) Mr. Cruz P 22. Cruz Income tax due 34.000 24.500 6. Cruz 11.500 29.000 P 22.500 P 4. Cruz Income tax on P140.500 .000 Income tax payable P-0- Mrs.

•Cash or property dividends . etc. prizes. royalties.•Interest.

•Are imposed on sales or exchanges of properties not used in business. .