Escolar Documentos
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CHAPTER 3
CITIZENS
1. Citizens of the Phil. At the time of the constitution on Feb.2, 1987
2. Fathers or mothers are citizens of the Philippines
3. Born before 1/17/1973 of Filipino mothers elected Filipino citizenship upon age of
majority
4. Naturalized in accordance with the law
CLASSIFICATIONS:
CITIZENS
I. RESIDENT Filipino citizen residing in the Phil.
CITIZEN
II. NON- a) Establishes to the satisfaction of the commissioner the fact of
RESIDENT his physical presence abroad with a definite intention to
CITIZEN reside
b) Leaves the Phils. During the taxable year to reside abroad,
either an immigrant or for permanent employment
c) Works and derives income abroad
d) Arrives in the Phils. At anytime during the taxable year to
reside permanently in the Phils.
ALIENS
III. RESIDENT Residing in the Phil. But not a citizen
ALLIEN a) Lives without a definite intention as to his stay
b) Comes with a definite purpose who requires an extended
stay and make Phils. Temporarily his home; may return to
his domicile abroad
IV. NON- Not residing and not a citizen
RESIDENT a) NRA-ETB-stayed for not more than 180 days during the year
ALLIEN b) NRA-NETB-comes with a definite purpose;promptly
accomplished
-comes for an aggregate period not more than
180 days during the year
*LENGTH OF STAY
Citizens staying abroad for at least 183 days are non-residents
Aliens who stayed in the Phil for more than 1 year at the end of taxable year is
considered resident
Aliens staying for not more than 1 yr but more than 180 days are NRA-ETB
Aliens who stayed for not more than 180 days are NRA-NETB
CORPORATE TAXPAYERS
Domestic Corporation
RFC
NRFC
SITUS OF INCOME
Types
1. Interest Income-debtors residence
2. Royalties- where the intangible is employed
3. Rent Income- location of property
4. Service income- place where service is rendered
CHAPTER 4
3 INCOME TAXATION SCHEMES:
a) Final income taxation
b) Capital gains taxation
c) Regular income taxation
ACCOUNTING PERIOD
1) Regular accounting period- 12 months
a) Calendar-starts with 1/1 ends with 12/31
Useful when:
Taxpayers annual acctg period is other than fiscal year
Has no annual acctg period
Does not keep books
An individual
b) Fiscal- begins with any day other than 1/1
*deadline of filing the income tax return is on the 15th of the fourth month ff. the
close of the taxable year
RATES:
1) SURCHARGE
25%-deficiency to pay tax on time
50%-willful neglect
2) INTEREST-20% per annum
Delay Period factor
For every day # of days/365 days
For every month* # of months/12
For every year 1
*period factor shall be multiplied by 20% interest rate multiplied to tax due to
compute for interest penalty
*30-day is considered 1 month
CHAPTER 5
ROYALTIES
INDIVIDUALS CORPORATIONS
Books,literary 10% final tax 20% final tax
works,musical compositions
others 20% final tax 20% final tax
TAXABLE PRIZES
INDIVIDUALS CORPORATIONS
Prizes exceeding 10,000 20% final tax Regular tax
Prizes not exceeding 10,000 Regular tax Regular tax
WINNINGS
INDIVIDUALS CORPORATIONS
PCSO/ lotto winnings Exempt Exempt
Others in general 20% final tax Regular tax