Assignment No. 2: Part 1: Determination of Income Tax Due/Payable

ASSIGNMENT NO.
NAME: ____________________________ SECTION: _________________________________
PART 1: DETERMINATION OF INCOME TAX DUE/PAYABLE
1. Pedro is resident citizen, earning purely compensation income as follows for 2019
taxable year, determine the income tax due/payable if taxable income is :
a. P200,000
b. P250,000
c. P800,000
d. P2,800,000
2. Juan is a resident citizen, earning purely business income for 2019 taxable year with the
following data:
Gross sales P2,800,000
Cost of sales 1,200,000
Operating expenses 650,000
Creditable withholding taxes 80,000
Determine the income tax due/payable.
3. Use the same data in #2 but assume that Juan opted to be taxed using 8% income tax
rate.
4. Juan is resident citizen, earning purely business income for 2019 taxable year with the
following data:
Gross sales P2,800,000

Rental income (net of CWT) 380,000
Other creditable withholding taxes 80,000
5. Can Juan choose to be taxed at 8% instead of the graduated income tax rate in #4? If
yes, how much is his income tax payable for the year?
6. Anna is a practicing professional with the following data for 2019 taxable year:
Gross receipts P4,000,000

Cost of direct services 1,800,000
Other operating expenses 825,000
7. Can Anna choose to be taxed at 8% instead of graduated income tax rate in #6? If yes,
how much is her income tax payable for the year?
8. Lorna is a resident citizen, determine the income tax due/ payable if she is earning
compensation and business income for 2019 as follows:
MODULE 3: INDIVIDUAL TAXPAYERS Page 1

ASSIGNMENT NO. 2
NAME: ____________________________ SECTION: _________________________________
Compensation income P1,400,000

Gross sales 2,800,000
Withholding tax on compensation 310,000
Other creditable withholding taxes 80,000
9. Can Lorna choose to be taxed at 8% instead of the graduated income tax rate in #8? If
yes, how much is her total income tax payable for the year?
PART 2: COMUTATION OF BASIC INCOME TAX, FINAL TAX ON PASSIVE INCOME

AND CAPITAL GAINS TAX
I. CJ, single, had the following data for 2019 taxable year:
Gross business income, Philippines P1,000,000
Gross business income, USA 500,000
Business expenses, Philippines 700,000
Business expenses, USA 430,000
Compensation income, Philippines 600,000
Dividend income from a domestic corporation 50,000
Dividend income from a foreign corporation 40,000
Interest income from peso bank deposit – Philippines 20,000
Interest income from bank deposits abroad 30,000
Interest income from FCDS deposits 40,000
Royalty income from composition 25,000
Raffle draw winnings 10,000
PCSO winnings 200,000
Creditable withholding taxes on business income 125,000
REQUIRED:
1. Determine the following assuming the taxpayer is a resident citizen:
a. Taxable net income
b. Income tax payable
c. Total final taxes on passive income
d. Total income tax expense
2. Determine the following assuming the taxpayer is a nonresident citizen:

3. Determine the following assuming the taxpayer is a resident alien:


ASSIGNMENT NO. 2
NAME: ____________________________ SECTION: _________________________________

4. Determine the following assuming the taxpayer is a nonresident alien engaged in trade
or business:
5. Determine the total income taxes of the taxpayer assuming the taxpayer is a
nonresident alien not engaged in trade or business (ignore business income, business
expenses and creditable withholding taxes on business income in the Philippines)
II. Archie, a practicing professional , single, revealed the following data for 2019
taxable year:
Philippines Abroad
Income from employment P180,000 P280,000
Business income 850,000 960,000
Deductible business expenses 610,000 730,000
Interest income on personal loans 6,000 3,000
Interest income on bank deposits 10,800 4,200
Interest income on money market placements 7,500 1,600
Dividend income from domestic corp. 5,700 -
Dividend income from foreign corp. 6,800 2,000
Royalty income 90,000 50,000
Winnings/prizes from lotteries, raffle draws 45,000 16,900
Prizes from singing contest 5,600 -
Lotto winnings 150,000 50,000
Royalty income from sale of books 68,000 -
ADDITIONAL DATA:
 In February, the taxpayer bought a lot deemed as capital asset. The acquisition cost
was P840,000. He later sold the lot in December for P1,060,000.
 In September, the taxpayer sold his 560 shares of stock of Ayala Investment
Corporation held by him as capital asset, thru a local stock exchange. The cost was
P36,900 whereas the sales price was P154,000
 In October, the taxpayer sold for P820,000 his house and lot located in Makati, held
as capital asset (not his principal residence). The fair market value on the date of
sale was P950,000 and the acquisition cost was P475,000.
REQUIRED:
1. Determine the following assuming the taxpayer is a resident citizen:
c. Final tax on passive income
d. Capital gains tax
2. Determine the following assuming the taxpayer is a nonresident citizen:

ASSIGNMENT NO. 2
NAME: ____________________________ SECTION: _________________________________

3. Determine the following assuming the taxpayer is a NRA-ETB:


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ASSIGNMENT NO.

NAME: ____________________________ SECTION: _________________________________

PART 1: DETERMINATION OF INCOME TAX DUE/PAYABLE

Determine the income tax due/payable.

Gross sales P2,800,000

Determine the income tax due/payable.

Gross receipts P4,000,000

Determine the income tax due/payable.

MODULE 3: INDIVIDUAL TAXPAYERS Page 1

NAME: ____________________________ SECTION: _________________________________

Compensation income P1,400,000

PART 2: COMUTATION OF BASIC INCOME TAX, FINAL TAX ON PASSIVE INCOME

2. Determine the following assuming the taxpayer is a nonresident citizen:

3. Determine the following assuming the taxpayer is a resident alien:

MODULE 3: INDIVIDUAL TAXPAYERS Page 2

NAME: ____________________________ SECTION: _________________________________

2. Determine the following assuming the taxpayer is a nonresident citizen:

MODULE 3: INDIVIDUAL TAXPAYERS Page 3

NAME: ____________________________ SECTION: _________________________________

3. Determine the following assuming the taxpayer is a NRA-ETB:

MODULE 3: INDIVIDUAL TAXPAYERS Page 4

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