Escolar Documentos
Profissional Documentos
Cultura Documentos
- Donate to charitable
institutions and other organizations.
Donations to the government (NEDA priority projects), certain Foreign
Institutions or International Organizations, and accredited Nongovernment
Organizations are fully deductible to gross taxable income.
REVENUE REGULATIONS NO. 13-98 issued December 14, 1998 prescribes the
regulations to implement Republic Act No. 8424 entitled "An Act Amending
the National Internal Revenue Code as amended", specifically Section 34 (H)
relative to the deductibility of contributions or gifts actually paid or made to
accredited donee institutions in computing taxable income.
Sec. 34(A)(1)(iv) NIRC/RR No. 10-02).- Give your customers or
prospective customers some recreation and entertainment.
Representation expenses refer to expenses incurred in connection with the
conduct of business in entertaining, providing recreation or meeting with a
guest at a dining place, amusement place and similar events/ places.
Representation, recreation and entertainment expenses that are directly
related to the conduct of your business can be allowed as deductions to your
taxable income subject to a ceiling prescribed in the current tax law or
revenue regulation .
Sec.34(a)(1)(iv) A reasonable allowance for entertainment, amusement and
recreation expenses during the taxable year, that are directly connected to
the development, management and operation of the trade, business or
profession of the taxpayer, or that are directly related to or in furtherance of
the conduct of his or its trade, business or exercise of a profession not to
exceed such ceilings as the Secretary of Finance may, by rules and
regulations prescribe, upon recommendation of the Commissioner, taking
into account the needs as well as the special circumstances, nature and
character of the industry, trade, business, or profession of the taxpayer:
Provided, That any expense incurred for entertainment, amusement or
recreation that is contrary to law, morals public policy or public order shall in
no case be allowed as a deduction.
For business owners, as you already know to arrive at the tax liability, you
first have to determine the gross income. Then you deduct that with the
allowable deductions then multiply it by the tax rate. With basic
mathematical operation, you can determine that by increasing the
deductions, you reduce your tax liability. This is where depreciation comes in.
The double declining method is a depreciation method wherein your
depreciation expense is higher in the earlier life of an asset. In turn, your
deductions from gross income higher at the early life of an asset hence
lesser tax liability.
This may not be applicable for all but it certainly is one way for you to lower
your tax. For businesses or corporations, the double declining is very useful
especially if a business is starting out or has just been established because
its tax liability becomes less burdensome in you first years of operation.
A joint arrangement whereby the parties that have joint control of the
arrangement have rights to the net assets of the arrangement
Once the ITH has expired, a PEZA-registered enterprise will only have to pay
5% Special Tax on gross income (as specified by PEZA) and will be exemption
from all national and local taxes. The enterprise can also take advantage of
its exemption from expanded withholding tax and VAT- free local purchases.
Some enterprises are also exempted from wharfage dues, imposts, export
taxes, and/or fees; payment for all local government imposts, fees, licenses,
permits, and/or taxes. You can check out PEZA website
(http://www.peza.gov.ph) for the complete list of the activities and
businesses eligible for PEZA registration and fiscal and non-fiscal incentives,
procedure for registration, as well as the current operating economic zones
all over the country.
d) P1,500 rice subsidy or one sack of rice (50 kg.) per month provided that
the price per sack
j) Daily meal allowance of not more than 25% of the regions basic minimum
wage, given to Again, these are two of the lawful ways to lessen your tax
burdens. The sooner you start taking advantage of these, the more money
you will save in the long run and employees who render overtime work and
those who work on night/graveyard shift.
Under the current treatment of capital gains, such gains are only taxed when
realized.
And heres how some taxpayers get around that: According to the report,
they can defer realizing capital gains but can realize capital losses at will
without changing their economic position, by terminating a security that has
lost money at the end of the tax year and then immediately repurchasing a
substantially similar security.
Selling the first security triggers the realization of the loss, while purchasing
the second security does not undo this loss realization.
(A) In the case of any loss claimed to have been sustained from any sale or
other disposition of shares of stock or securities where it appears that within
a period beginning thirty (30) days before the date of such sale or disposition
and ending thirty (30) days after such date, the taxpayer has acquired (by
purchase or by exchange upon which the entire amount of gain or loss was
recognized by law), or has entered into a contact or option so to acquire,
substantially identical stock or securities, then no deduction for the loss shall
be allowed under Section 34 unless the claim is made by a dealer in stock or
securities and with respect to a transaction made in the ordinary course of
the business of such dealer.
(B) If the amount of stock or securities acquired (or covered by the contract
or option to acquire) is less than the amount of stock or securities sold or
otherwise disposed of, then the particular shares of stock or securities, the
loss form the sale or other disposition of which is not deductible, shall be
determined under rules and regulations prescribed by the Secretary of
Finance, upon recommendation of the Commissioner.
(C) If the amount of stock or securities acquired (or covered by the contract
or option to acquire which) resulted in the non-deductibility of the loss, shall
be determined under rules and regulations prescribed by the Secretary of
Finance, upon recommendation of the Commissioner.cralaw