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    Classification of Taxpayer

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    Eduard Morelos
    This document classifies different types of taxpayers and outlines how their incomes are taxed. It discusses five types of individual taxpayers - resident citizens, non-resident citizens, resident aliens, non-resident aliens engaged in trade or business, and non-resident aliens not engaged in trade or business. It also covers three types of corporations - domestic, foreign resident, and foreign non-resident. Lastly, it briefly mentions partnerships, estates, and trusts as potential taxpayers.

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    Classification of Taxpayer

    Uploaded by

    Eduard Morelos
    348 views2 pages
    This document classifies different types of taxpayers and outlines how their incomes are taxed. It discusses five types of individual taxpayers - resident citizens, non-resident citizens, resident aliens, non-resident aliens engaged in trade or business, and non-resident aliens not engaged in trade or business. It also covers three types of corporations - domestic, foreign resident, and foreign non-resident. Lastly, it briefly mentions partnerships, estates, and trusts as potential taxpayers.

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    Classification of Taxpayer

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    This document classifies different types of taxpayers and outlines how their incomes are taxed. It discusses five types of individual taxpayers - resident citizens, non-resident citizens, resident aliens, non-resident aliens engaged in trade or business, and non-resident aliens not engaged in trade or business. It also covers three types of corporations - domestic, foreign resident, and foreign non-resident. Lastly, it briefly mentions partnerships, estates, and trusts as potential taxpayers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    348 views2 pages

    Classification of Taxpayer

    Uploaded by

    Eduard Morelos
    This document classifies different types of taxpayers and outlines how their incomes are taxed. It discusses five types of individual taxpayers - resident citizens, non-resident citizens, resident aliens, non-resident aliens engaged in trade or business, and non-resident aliens not engaged in trade or business. It also covers three types of corporations - domestic, foreign resident, and foreign non-resident. Lastly, it briefly mentions partnerships, estates, and trusts as potential taxpayers.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    CLASSIFICATION OF TAXPAYER

    INDIVIDUAL TAXPAYER
    1.) Resident Citizen
    Income derived from sources w/n and w/o the Phil.

    CORPORATION
    i.
    Domestic corporation / special corporation
    Created and organized in the Philippines or under its law. It is taxable for income
    derived from sources within and without the Philippines.

    2.) Non-resident citizen


    From income derived from sources within the Philippines; means a Filipino citizen:
    Establishes the satisfaction of the fact of his physical presence abroad with a
    definite intention to reside therein;
    Who leaves the Phil during the taxable year to reside abroad either as an
    immigrant or for employment on a permanent basis;
    Work and derives income abroad whose employment requires him to be
    physically present abroad during taxable time
    Previously considered as a non-resident and who arrived in the Phil at anytime
    during taxable year to reside thereat permanently shall be considered nonresident for the taxable year in which he arrives in the Phil with respect to his
    income derived from sources abroad until date of his arrival

    ii.
    Foreign corporation / resident foreign corporation
    Engaged in trade or business within the Philippines. It is taxable for income derived
    from sources within the Philippines

    3.) Resident alien


    For income derived from sources within the Philippines
    Means an individual whose residence is within the Phil and who is not a citizen
    thereof
    One who comes to the Phil from a definite purpose which in its nature would
    require extended stay, and makes his home permanently in the country
    becomes a resident alien
    Length of stay is indicative of intention. An alien who shall have stayed in the
    Phil for more than 1 year by the end of the calendar year is a resident alien
    4.) Non-resident alien / engaged in trade or business
    GR: shall be subject to an income tax in the same manner as an individual citizen and
    a resident alien individual, on taxable income received all sources within the
    Philippines.
    NOTE: a non-resident alien individual who shall come to the Philippines and stay
    therein for an aggregate period of more than 180 days during any calendar year shall
    be deemed a non-resident alien doing business in the Philippines.
    5.) Non-resident alien / not engaged in trade or business
    The entire income received all sources within the Philippines by every non-resident
    alien individual not engaged in trade or business within the Philippines as interest,
    cash, rents, salaries, wages, premiums, annuities, compensation, remuneration,
    emoluments, or other fixed or determinable annual or periodic or casual gains, profits,
    and income, and capital gains.
    A tax equal to 25% of such income. Capital gains realized by a non-resident alien
    individual not engaged in trade or business in the Philippines the sale of shares of stck
    in any domestic corporation and real property shall be subject to the income tax.

    iii.
    Foreign corporation / non-resident foreign corporation
    Not engaged in trade or business within the Philippines. It is taxable for income
    derived from sources within the Philippines.
    PARTNERSHIP
    1.) General co-partnership
    2.) General professional partnership
    TRUST
    1.) Revocable trust
    2.) Irrevocable trust
    ESTATE
    1.) Classification of taxpayer
    A. INDIVIDUAL TAXPAYER
    B. CORPORATION
    C. PARTNERSHIP
    1.) General co-partnership
    2.) General professional partnership
    A general profession partnership as such shall not be subject to the income tax
    imposed;
    Persons engaging in business as partners in a general professional partnership
    shall be liable for income tax only in their separate and individual capacities
    For purposes of computing the distributive share of the partners, the net
    income of the partnership shall be computed in the same manner as a
    corporation.
    Each partner shall report as gross income his distributive share actually or
    constructively received, in the net income of the partnership.
    D. ESTATES
    E. TRUST

    1. Revocable trust

    2. Irrevocable trust

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