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JUNIO, CPA Notre Dame of Midsayap College Midsayap, Cotabato

Income Tax System • Global income tax system •Gross income tax system •Schedular tax system .

This income tax system is a combination of gross compensation income and/or net income from business. trade or profession to arrive at the total (global) income subject to tabular tax rates .

•Compensation income •Net income from business. trade or profession •Passive income •Capital gains .

The usual allowable deductions are completely disregarded in computing this income tax.The taxpayer’s income tax is fixed or computed based on the gross income. .

Examples: • Fringe benefit tax • Passive income subject to final tax • Capital gains tax on real property • Minimum Corporate Income Tax .

. their filing and payment should be accompanied with separate BIR form as required per category of income.Since income taxes are either computed based on global tax system or gross income tax system.

• Annual income tax return (for global income tax) • Capital gains tax return (for sale of real property classified as capital assets) .