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InTax Final Pre Assessment

The document presents various tax-related problems involving income, expenses, and tax calculations for different entities, including a proprietary educational institution, a resident foreign corporation, and a resident alien individual. Each problem requires determining tax payable based on provided financial data for specific years and scenarios. The problems cover topics such as gross income, expenses, and applicable tax rates for various types of income and entities.

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bacaratsamirah
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70 views2 pages

InTax Final Pre Assessment

The document presents various tax-related problems involving income, expenses, and tax calculations for different entities, including a proprietary educational institution, a resident foreign corporation, and a resident alien individual. Each problem requires determining tax payable based on provided financial data for specific years and scenarios. The problems cover topics such as gross income, expenses, and applicable tax rates for various types of income and entities.

Uploaded by

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

Name:

Problem 1:
A proprietary private educational institution, accredited by CHED, has presented the following data for the calendar year
2020:
Gross income, educational services P 5,000,000
Rent from commercial spaces, gross of 5% withholding tax 2,500,000
Passive income subject to 20% final tax 3,500,000
Expenses, educational services 2,000,000
Expenses connected to rent lease of commercial spaces 3,000,000
Dividend from a domestic corporation 100,000
Payments, first three (3) quarters 1,000,000
Question: How much is the tax payable?

Problem 2:
A resident foreign corporation has the following data on its income, expenses and remittances for the current year:
Gross sales, Philippines P9,000,000
Cost of sales, Philippines 2,000,000
Gross sales, USA 7,000,000
Cost of sales, USA 2,000,000
Business expenses, Philippines 2,000,000
Business expenses, USA 1,000,000
Royalties on Philippine copyrights 500,000
Interest on time deposit, PNB-Manila, Philippines 100,000
Remittances of profit during the year, net of the applicable tax 170,000
Payments, first three (3) quarters 100,000
Question 1: Determine the Philippine income tax due and payable using itemized deduction
Question 2: Determine the Philippine income tax due and payable using Optional Standard Deduction

Problem 3:
A corporation has the following data for the calendar year 2018:
Gross income/rentals, Philippines P 2,500,000
Gross income, Japan 1,500,000
Expenses, Philippines 1,000,000
Expenses, Japan 500,000
How much is the final withholding Philippine income tax and the withholding VAT, assuming the corporation is a:
a. non-resident cinematographic film owner, lessor or distributor?
b. non-resident owner or lessor of vessels chartered by Philippine nationals?
c. non-resident owner or lessor of aircraft, machineries and other equipment?

Problem 4:
A resident alien individual supports two (2) qualified dependent adopted children and a foster child. He asks you to assist
him in the preparation of his tax return for his income in 2020. He provides you the following information:
Gross business income, Philippines (gross sales, P3,000,000) P 1,000,000
Gross business income, Japan (gross sales, P7,000,000) 5,000,000
Business expenses, Philippines 200,000
Business expenses, Japan 800,000
Philippine Charity Sweepstakes winnings 500,000
Japanese Sweepstakes winnings 400,000
Interest income, Bank of Tokyo, Japan 100,000
Interest income received from a depository bank under EFCDS, Philippines 300,000
Interest on peso bank deposit, Philippines 100,000
Income taxes paid for the first three (3) quarters 50,000
Questions:
1. How much was the taxable net income and income tax due if he avails of the 8% income tax rate?
2. Assuming the taxpayer failed to avail of the 8% income tax, how much is his taxable income and the income tax due?

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