Tax Benefit Rule - Ex: Export sales zero rate: Coach because papasok

- Bad Debt ang pera, positive effect

- - ex: sachet industry

Pension
- X employer maintaining private retirement fund,
he contributes 10k to fund. X CAN CLAIM
DEDUCTION
- Y nagretire froom service
NON-DEDUCTIBLE
- Personal, family, living expenses
- not all life insurance premiums are non-deductible
– depends on profession, if necessary for trade. Ex:
model insures legs, skydiver, pilot – lagging
tanungin, anong business mo?
VAT
- Business tax
- indirect tax
- tax added to the value
- monthly declaration
- allowed only to credit output less input if engaged
in t/b
- receipt is proof for EXPENSE, can claim
- receipt represents input vat
ON:
- sale of goods in the course of trade of business,
PLUS 12% ADDED TO VALUE (GROSS SELLING PRICE)
- BAWAT TRANSACTION 12%
- TDS yes (tapsilong pinambayad sa utang)
- sale of service in trade or business (GROSS
RECEIPTS
- Pag nagbenta: OUTPUT FOR SALES
(SELLER), INPUT FOR PURCHASE (BUYER)
- Same transaction as basis for income subj
to tax
- importation
- PAPASOK: import purchase Pay VAT + TCD
- PALABAS: TCD + ZERO RATE VAT
ZERO RATED
- VATABLE BUT AT 0%
EXEMPT
- No vat imposed
- not subject to vat only at particular stage
- Sec 109 a-bb
- Sale of goods in original state (Binentang bangus
sa palengke)
- Pag bangus ginawang tinapa, daing – STILL
EXEMPT, SIMPLE PROCEDURES FOR PRESERVATION
NOT FOR PURPOSES OF FINISHED PRODUCT
- Sinigang nab angus, bangus silog, tinapang bangus
na may sinangag –VATABLE
- Buhay na manok - exempt
- patay na manok – exempt
- bbq flavoured chicken – VATABLE (Andoks baliwa
sr san pedro)
- EER, compensation income – EXEMPT
- Exercise of prodesstion (litigation, doctor,) –
VATABLE IN EXCESS OF 3M
- Lease of residential units - 16K – VATABLE, 15K –
VATABLE, 14999 – VATABLE BECAUSE
COMMERCIAL
- DORM – Vatable no threshold
- ANG MAY THRESHHOLD AY RESIDENTIAL
- Real prop primarily held for sale/lease to
customers – VATABLE, no threshold
- low cost housing unit 1.5 – EXEMPT no threshold
- (P)
- GROSS RECEIPTS DO NOT EXCEEP 3M
- 2 OPTIONS OF TAXES: 8% (NO VAT KASI
EXEMPTED)
- NIT RATES – No vat but percentage tax
- know threshold: lease of residential units 15k now
- SENIORS AND PWDS EXEMPT FROM VAT
- association dues in hoa and condos JAN 1 2018
- SALE OF DRUGS TO CURE DIABETIS HIGH BLOOD
HYPERTENSION BEGINNING JAN 1 2018
- Sale of gold to BSP
- transfers/exchanges of property under sec 40 of
tax code
SEC 40
- A and B merged = AB
- AB issues shares of stocks – A
EX: Dressed chicken DEDUCTIONS
- bought in palengke – exempt bec small medium - bigay sa gobyerno transfer for pub use provided
enterprise not >30% used for admin
- bought in shopwise – vatable because shopwise - NO MORE DOWRY
gross sales >3M
RATE 6% FIXED RATE
- of net gift in excess of 250k
DONORS - 250k and below exempt
KINDS OF DONORS Calendar year basis
- rc - bawat regalo, bayad 30 days after
- nrc - 250 NOT PER GIFT BUT IN ONE YEAR
- ra - Ex:
FEB 700K no deduction 450x6% = 27k tax
- FMV at time if git – amt given JUNE
- Inter vivos
- Dependent on location NET TAX DUE = ADD ALL, DEDUCT PREVIOUS TAXES
- properties located outside not subj to donors tax PAID
- donation intent: gratuitous, voluntary
- Sec 100
- pag nagbenta ng lugi, namimigay ng libre
Gross donation - Estate tax if at same time….
Less - except bona fide sale at arms length – FREE FROM
Allowable deduction DONATIVE INTENT
_____ - Ex: bona fide sale wise business decision LACKING
Taxable net gift IN DONATING INTENT: GROCERY SALE BUY 1 TAKE 1
Multiplied by tax rate - puhunan 20, benta 35 pesos
____ - 2.50 lugi  NO DONORS TAX
Tax due - SELLER MUST PROVE HE SOLD BONA FIDE
SALE LACKING IN DONATIVE INTENT
Double taxation in broad sense remedy
- tax credit BAR: Properties, FMV, LOCATION  COMPUTE
- GROSS GAIN
- use within without
Properties - add values that are always x0000
- real
- tangible personal property Donation ifo political party for campaign purposes
- intangible personal – apply sec 104 – ELECTION CODE
Nra donor – ph situs treated as within: - not subj to income/donors tax:
franchise exercise, shares oblig bonds 1. received during official campaign period
issued by dc, sob issued by fc 85% of 2. fully utilized for authorized campaign
business located in ph, sob by fc acquired 3. winning/losing candi files sose
situs, reciprocity 4. creditable withholding tax of 5% was
withheld and remitted to BIR when contribution
Kailan papatawan ng tax was spent by candidate
- at point when gift is consummated : accepted and
delivered
If donor is corp  VIOLATION OF CORP CODE SO - family home  10M, nra NONE, but if value of
EVERYTHING IS SUBJ TO INCOME TAX AND DONORS home is 6M, CANNOT CLAIM. ONLY UP TO 10M
TAX WHICHEVER IS LOWER
- conjugal share of surviving spouse  IN FULL BUT
NRA ONLY PERTAINING TO PROPS LOCATED IN PH
ESTATE H: capital/exclusive – 8M
W: paraphernal – 10M
- FMV at time of death HW:
- mortis causa transfer of prop Pag namatay si H, gross estate = H+1/2hw
- dependent on location of prop  within or Pag namatay si W = W+1/2HW
without Claim as deduction the share of the living
- kinds of decedents: rc, nrc, ra, nra – not asked t/b spouse 

GE-AO=TNEx% = H CONJUGAL SHARE = 10m minus

expéditeurs (ex: 4.2M) = 5.8 (net conjugal asset) 
DIVIDE BY 2
Cash deposits bank accounts – CAN WITHDRAW
ANY ACCT -vanishing deduction  father to son to apo  one
- Statement that other joint are still living of deductions for apo is vanishing deduction
- pay 6% estate tax because previously taxed if period of time bet
father and son death is 5 y  PAG LIMANG TAON
ITEMS OF INCLUSION (not exclusive) ANG AGWAT, ESTATE NI APO WALA NANG
Decedents interest DEDUCTION. Apo dies, apply same rule  NO LIMIT
Transfer in contemplation of death BEC SAME PROPERTY  nra can claim as long as
Revocable transfer prop located in PH
Property passing under general power of -retirement benefits ra 4917  nra not entitled
appointment
TRAIN
At point of death, meron bang degree of control? IF - notice of death no longer required
YES TAXABLE - file return within 1Y from death
- can now withdraw from bank acct of deceased any
DEDUCTIONS amt no limit provided 6% withholding tax is paid
- 11 - if insufficiency of cash to settle tax due, can
- Tinanggal: funeral expense, judicial, medical propose instalment max 2 years from due date 1y
expense period  ikaw ang magsusulat kung anong
- claims against estate of debtor  NRA entitled in schedule at magkano  if default, entire bal due
proportion to estate in PH and demandable  NO PAYMENT OF
- claims against insolvent person  nra in SURCHARGE/PENALTIES/INTERESTS AS LONG AS NO
proportion. Dagdag bawas DEFAULT  IF DEFAULT 25% PENALTY PLUS 12%
- unpaid mortgage dagdag value of security at LEGAL INTEREST BEGINNING 1Y FROM DEATH
time of death, bawas utang na hindi nabayaran -
- unpaid taxes  lahat ng buwis na hindi nabayaran -
- casualty loss 
- transfer for pub use to govt  deductible in full
even if nra
- standard deduction  increased to 5M, nra until
500