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  • Income Taxation

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    Sim Belsondra
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    This document defines different types of income such as gross income, net income, and discretionary income. It also discusses taxable income versus non-taxable income and lists common forms of cash and non-cash benefits that employers provide as part of an employee's compensation. Finally, it gives an example of an employee's annual compensation breakdown showing taxable versus non-taxable amounts.

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    This document defines different types of income such as gross income, net income, and discretionary income. It also discusses taxable income versus non-taxable income and lists common forms of cash and non-cash benefits that employers provide as part of an employee's compensation. Finally, it gives an example of an employee's annual compensation breakdown showing taxable versus non-taxable amounts.

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    Download as PPTX, PDF, TXT or read online from Scribd
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    20 views12 pages

    Income Taxation

    Uploaded by

    Sim Belsondra
    This document defines different types of income such as gross income, net income, and discretionary income. It also discusses taxable income versus non-taxable income and lists common forms of cash and non-cash benefits that employers provide as part of an employee's compensation. Finally, it gives an example of an employee's annual compensation breakdown showing taxable versus non-taxable amounts.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 12

    Different Terms for Income

    Gross income means the total value of


    one's salary or payments, without
    accounting for any cash outflows. 
    Net income refers to the income left over
    after subtracting taxes or fees. For
    individual earners
    discretionary income is the amount they
    have available after paying for necessary
    expenses.
    Essential parts of a company’s
    compensation system to encourage
    more employees to perform better.
    FORM OF BENEFITS

    CASH:
    - 13TH MONTH PAY
    - BONUSES
    - LIVING ALLOWANCE

    NON-CASH:
    - SSS
    - GSIS
    - PAG-IBIG
    - PhilHealth
    TAXABLE INCOME NON-TAXABLE INCOME

    Taxable income means the


    pertinent items of gross Nontaxable income
    income specified in the Tax won't be taxed, whether
    Code as amended, less the or not you enter it on
    deductions, if any, authorized your tax return. 
    for such types of income, by
    the Tax Code or other special
    laws.
    Ms. Jen is an employee of XYZ Company. She received the
    following annual compensations and benefits
    ANNUAL BASIC SALARY 350,000

    13TH MONTH PAY/ BONUSES 83,000

    RICE SUBSIDY 30,000

    CLOTHING ALLOWANCE 7500


    DESCRIPTION TAXABLE NON-TAXABLE

    Rice Subsidy (6,000) 24,000


    (Ceiling amount of P2,000 per month)

    Clothing Allowance (1,500) 6000


    (Ceiling amount is P6,000 per year)

    13TH Month Pay and Bonuses 83,000

    7500 113,000

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