unit 12 session 6

8/3/2019 Unit 12 Session 6

http://slidepdf.com/reader/full/unit-12-session-6 1/23

UNIT 12

TAXATIONSession 6



Topics Review of Last session

Test of baseline knowledge

Relevant and allowable expenses Charges on income

Payments to charities

Tax free allowances Tax rates

Payment dates

Go TopGo Top



Reviewof Last s

ession

Reviewof Last s

ession



Test of baseline

knowledge



Relevant and allowable expenses

Go TopGo Top



Deductions from Gross Income - Individual

Itemized Deductions (see section 34)

Optional standard deduction (40%)



Deductions from Gross Income -Corporate

Business Expense

Interests

Taxes

Losses

Bad debts

Depreciation

Depletion

Charitable contributions

R& D Pension contributions for employees

Special deductions

Deductions allowed by laws



Charges on income

Go TopGo Top



Expenses Charged to IncomeExpenses Charged to Income

Cost of Goods SoldCost of Goods Sold

Cost of SalesCost of Sales

Expenses AllowedExpenses AllowedExemptions for individualsExemptions for individuals



Payments to charities andother contributions

Go TopGo Top



Charities

individual contribution to Charity should not

exceed an amount ten percent (10%) of net

income

Corporate contribution to Charity should notexceed an amount five percent (5%)



Government

education,

health,

youth and sports development, human settlements,

science and culture, and

in economic development



Accredited NGOs

(1) scientific, research, educational, character-building and

youth and sports development, health, social welfare,

cultural or charitable purposes

(2) not later than the 15th

day of the third month(3 no case to exceed thirty percent (30%) of the total

expenses; and

(4) The assets of which, in the even of dissolution, would

be distributed to another nonprofit domestic corporation

organized for similar purpose or purposes,



Contribution type

Cash

In-kind

Asset



Tax free allowances

Go TopGo Top



Allowances

Lif e Insurance Proceeds

Value of Property acquir ed through inher itance

Retir ement Benef it

Pr izes and awards through NGOS Chr istmas Bonus, 13th month, productivity bonus,

(maximum of Php30,000)

Gains from sale of r etir ement of bonds



Tax rates - Individual



TAX TABLE

If Taxable Income is Tax Due is: If Taxable Income is : Tax Due is:

Not over P10,000 5%

Over P10,000 but

not over P30,000

P500 + 10% of the

excess over P10,000

Over P140,000 but

not over P250,000

P22,500 + 25% of the

excess over P140,000

Over P30,000 but

not over P70,000

P2,500 + 15% of the

excess over P30,000

Over P250,000 but

not over P500,000

P50,000 + 30% of the


Over P70,000 but

not over P140,000

P8,500 + 20% of the

excess over P70,000Over P500,000

P125,000 + 34% of the


Note : Effective January 1, 1999, the maximum rate will be changed to 33% and 32% on

January 1, 2000.



Tax dates -

Individual



Filing

The income tax return with a tax payable shall be filed

with any Authorized Agent Bank (AAB) of the Revenue

District Office

In places where there are no AABs, the return shall befiled with the Revenue Collection Officer or duly

Authorized City or Municipal Treasurer.

The returns of the taxpayers shall be filed on or before

the fifteenth (15th) day of April of each year covering

income for the preceding taxable year.



Payment

Upon filing this return, the total amount payable shall be

paid to the AAB where the return is filed.

When the tax due exceeds P2,000.00, the taxpayer may

elect to pay in two equal installments, the first installmentto be paid at the time the return is filed and the second,

on or before July 15 of the same year.

AAB machine validation is also OR

Overwithholding of income tax on compensation due to

the fault of the employee shall be forfeited in favor of the

government.



Topics for Research

Bases of assessment

Adjustments of profits and losses

Disallowed expenses

Tax Losses

Capital expenses and allowances

Tax Forms

Go TopGo Top



Requir ed

Complete r elevant

documentation and

r eturns

Go TopGo Top

unit 12 session 6

Documents