Scribd
Upload
2K views3 pages

Answer: A

This document provides income and expense information to calculate the taxable income of Mr. and Mrs. Dela Cruz for the 2018 tax year. It shows that Mr. Dela Cruz's taxable income is P684,000 and Mrs. Dela Cruz's taxable income is P1,870,000. This is calculated by taking their salaries, professional fees, rental income, and allocating shared items equally, then subtracting allowable expenses.

Uploaded by

Rosemarie Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
2K views3 pages

Answer: A

This document provides income and expense information to calculate the taxable income of Mr. and Mrs. Dela Cruz for the 2018 tax year. It shows that Mr. Dela Cruz's taxable income is P684,000 and Mrs. Dela Cruz's taxable income is P1,870,000. This is calculated by taking their salaries, professional fees, rental income, and allocating shared items equally, then subtracting allowable expenses.

Uploaded by

Rosemarie Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

33.

If he is a non-resident citizen and the taxable year is 2017, his income tax due after tax credit, if
any is:

a. P360,580 c. P384.380

b. P358.020 d. P357.000

❖ Answer: D (SameSolutio
solution with the preceding number)
n:
34. If he is a non-resident citizen and the taxable year is 2018, his income tax payable is:

c. P295.000 c. P384.380

d. P358.020 d. P357.000

. ❖ Answer: A

Business income (Philippines only) P1,000,000

Professional income 400,000

Salaries 200,000

Business and professional expenses (250,000)

Taxable net income P1,350,000

Income Tax Due/Payable (Train Law) P295,000

35. If he is a non-resident alien engaged in trade or business in the Philippines but without the
benefit of Reciprocity Law, the income tax payable assuming the taxable year is 2017 should be:

a. P397,000 c. P405.500

b. P378.500 d. P338,500

❖ Answer: A

Business income (Philippines only) P1,000,000

Professionalincome „ 400,000

Salaries 200,000

Business and professional expenses (250,000)

Basic personal exemption (no reciprocity)

Additional personal exemption (no reciprocity) Taxable net income P1,350,000

Income Tax Due/Payable (old table) P397,000


,g If he is a non-resident alien not engaged in trade or business, disregarding professin J business data, the
total income tax that should be withheld from his income is: ° nal 5

a. P50.000 c. P31.500

b. P18.500 d. P338.500

❖ Answer: Solutio
A
n:
G3 Income Tax Due = Salaries of P200.000 x 25% = P50.000 CJ Regardless of the taxable period (before
or after TRAIN Law)

37. If he is a Special Alien Employee, disregarding professional and business data, the total income
tax that should be withheld from his income assuming the taxable year is 2017 should be:

a. P18.500 . c. P11,500

b. P30.000 d. None

❖ Answer: B

o Income Tax Due = Salaries of P200.000 x 15% = P30.000

o Prior to 2018, SAEs are taxable at 15% on their compensation income, o SAEs are now subject to basic
tax on their compensation income under TRAIN Law,

38. Mr. and Mrs. Dela Cruz, both CPAs and residents of the Philippines, with 5 minor children,
had the following data for 2018 taxable year:
Salaries, wife P1,200,000
13th month pay and other bonuses, wife 140,000
Professional Fees, (net of 5% CWT) 1,710,000
Expenses - Practice of profession (15% nondeductible) 800,000
Rental income (net of 5% withholding tax 190,000
Rental expenses 80,000

The taxable income of Mr. Dela Cruz is:

a. P48400 c. P1,870,000

b. P684,000 d. P2,554,000

❖ Answer: B

39. The taxable income of Mrs. Dela Cruz is:

a. P371.000 c. P1,870,000

b. P359.000 d. P410,000
❖ Answer: C

o CWT on “Professional Fees” under TRAIN Law '

■ Individual Payee

0 Gross Income for the year < P3,000,000 = 5% 0 Gross Income for the year > P3,000,000 = 10%
Solutio
■ Non-lndividual
n: Payee

0 Gross Income for the year £ P720i000 = 10%

() Gross Income for the year > P720,000 = 15%

o CWT on “Professional Fees" Prior to TRAIN Law

■ Amount is not more than P720.000 = 10%

■ Amount is more than P720.000 = 15%

Solution:

1 Mr. Mrs.
Salaries P- P1-,200,000
Excess of 13th month pay over tax exempt - 50,000
benefit (140,000-90,000)
Professional fees (P1,710,000/95%)/2 900,000 900,000
Rental income (P190,000/95%)/2 100,000 100,000
Professional expenses (P800,000 x 85%)/2 (340,000) (340,000)
Rental expenses (P80,000/2) (40,000) (40,000)
Other income (P80,000 x 80%) 64,000
Taxable Net Income P684,000 P1,870,000

You might also like