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    Individual Taxpayer

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    Jovie Ann Ramilo
    Individual taxpayers in the Philippines are classified as either citizens or aliens, and further divided into resident or non-resident. Resident citizens and domestic corporations are taxed on worldwide income, while other taxpayers are only taxed on income from Philippine sources. The document outlines the different categories of taxpayers and their tax treatment, and provides examples of income from Philippine sources that are considered gross income and subject to tax.

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    Individual Taxpayer

    Uploaded by

    Jovie Ann Ramilo
    101 views3 pages
    Individual taxpayers in the Philippines are classified as either citizens or aliens, and further divided into resident or non-resident. Resident citizens and domestic corporations are taxed on worldwide income, while other taxpayers are only taxed on income from Philippine sources. The document outlines the different categories of taxpayers and their tax treatment, and provides examples of income from Philippine sources that are considered gross income and subject to tax.

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    INDIVIDUAL TAXPAYER.docx

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    Individual taxpayers in the Philippines are classified as either citizens or aliens, and further divided into resident or non-resident. Resident citizens and domestic corporations are taxed on worldwide income, while other taxpayers are only taxed on income from Philippine sources. The document outlines the different categories of taxpayers and their tax treatment, and provides examples of income from Philippine sources that are considered gross income and subject to tax.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    101 views3 pages

    Individual Taxpayer

    Uploaded by

    Jovie Ann Ramilo
    Individual taxpayers in the Philippines are classified as either citizens or aliens, and further divided into resident or non-resident. Resident citizens and domestic corporations are taxed on worldwide income, while other taxpayers are only taxed on income from Philippine sources. The document outlines the different categories of taxpayers and their tax treatment, and provides examples of income from Philippine sources that are considered gross income and subject to tax.

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    © All Rights Reserved
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    INDIVIDUAL TAXPAYER

    A. Classification

    Individual taxpayers are classified into:

    1. Citizens, who are divided into:


     Resident citizens- those citizens whose residence is
    within the Philippines; and
     Non-resident citizens- those citizens whose residence is
    not within the Philippines.

    2. Aliens, who are divided into:


     Resident aliens- those individuals whose residence is
    within the Philippines and citizens thereof; and
     Non-resident aliens- those individuals whose residence
    are not within the Philippines but temporarily in the
    country and are not citizens thereof. They are:
    o Those engaged in trade or business within the
    Philippines; and
    o Those who are not so engaged. (See NIRC,
    Sections 23-25)

    B. Sources of Income and Tax Treatment

    Sec. 23. General Principles of Income Taxation in the


    Philippines. -

     Taxed derived from all sources worldwide:


    1. Resident Citizens.
    2. Domestic Corporations.
     The other kinds of taxpayers are subject to tax only on income
    derived from Philippine sources.

    Taxable Income Taxable Income


    Citizenship &
    Inside RPh Outside RPh
    Residency
    Resident Citizen Yes Yes
    Non-resident Citizen Yes No
    Overseas Contract
    Yes No
    Worker
    Resident Alien Yes No
    Non-Resident Alien Yes No
    Domestic
    Yes Yes
    Corporation
    Foreign Corporation Yes No

    Sec. 42. Income from Sources Within the Philippines.-

    The following are treated as gross income from sources within the
    Philippines. (Sections 152-165, R.R. 2-1940):

    1. Interests- Including interests on bonds, notes and other interest


    bearing obligations:
    a. The loan was used here in the Philippines;
    b. The debtor is in the Philippines

    2. Dividends-
    a. From a domestic corporation; and
    b. A foreign corporation,

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