Escolar Documentos
Profissional Documentos
Cultura Documentos
7. Merchandising Income – earned where the property is Penalties for Late Filing or Payment of Tax
sold 1. Surcharge
a. 25% of the basic tax for failure to file or pay
8. Manufacturing Income – earned where the goods are
deficiency tax on time
manufactured and sold
b. 50% for willful neglect to file and pay taxes
Chapter 4: Income Tax schemes, Accounting Methods *willful neglect when tax payer receives a notice
and Periods
2. Interest – 20% per annum considering the ff. periods
Tax Accrual Basis
Delay Period Factor
Cash income xxx
For everyday of delay No. of Days/365
Accrued income xxx
For every month of delay No. of Months/12
Collection for future services-advances xxx
For every year of delay 1
Total Gross Income xxx
Less: Deductions
3. Compromise penalty
Cash Expense xxx
Accrued Expense xxx
Amortization of 2015 pre exp xxx
Total deductions xxx
Net Income xxx
Taxability of Stock Dividends
Chapter 5: Final Income Taxation
Normally, Stock dividends are exempt from
Non-resident person not engaged in General Final income tax
trade or business tax rate Except when there is a subsequent redemption or
NRA-NETB 25% cancellation of stock issues;
NRFC 30% And if it leads to a substantial alteration of
ownership in the corporation
PASSIVE INCOME SUBJECT TO FINAL TAX
NRA-NETB NRFC
General Final Tax Rate 25% 30%
Exceptions:
1. Capital Gain on sale of 5%-10% 5%-10%
domestic stocks directly to buyer Capital Capital gains
gains tax tax
2. Rentals of cinematographic 25% of 25% of
films and similar works rentals rentals
3. Rentals of vessels 25% of 4.5% of
rentals rentals
4. Rentals of aircrafts,
25% of 7.5% of
machineries, and other
rentals rentals
equipment
5. Special aliens (special 15% of
employees gross
income N/A
from
employer
6. Lotto and PCSO Winnings Exempt Exempt
7. Interest Income under the
Exempt Exempt
foreign currency deposit system
8. Interest on foreign loans N/A 20%
9. Dividend Income 15% if
25% sparing rule
is applicable
10. Tax on corporate bonds 30 % 30%
The return shall be filed and the tax shall be paid or before
10th day of the following month