1.

Shiela, a mixed income earner provided the following date for taxable year 2018:
Compensation Income
Salaries – (net of SSS, PHIC and HDMF Contribution of P25,000)
and withholding tax of 120,500) P795,500
13th Month Pay 65,000
Clothing allowance 10,000
Rice subsidy 24,000
Christmas Bonus 5,000
Other compensation income 8,000
Overtime Pay 90,000
Business and Professional Income
Sales P1,500,000
Cost of sales 800,000
Business expenses 200,000
Professional Fess – (net of P100,000 w/tax) 900,000
Expenses – practice of profession 300,000

Disregarding business and professional income, how much is the gross compensation income of Shiela for
taxable year 2018:
a. P1,143,000 b. P997,500 c. P1,022,500 d. P1,053,000

2. Disregarding business and professional income, compute the gross taxable compensation income for taxable
year 2018:
a. P868,500 b. P1,014,000 c. P893,500 d. P924,000

3. Based on No. 2, compute the income tax due:

a. P194,200 b. P158,050 c. P150,550 d. P167,200

4. Based on No. 3, compute the income tax payable:

a. P46,700 b. P73,700 c. P37,550 d. P30,050

5. Disregarding compensation income, compute the income tax payable of Shiela for taxable year 2018
a. P250,000 b. P180,000 c. P150,000 d. P80,000

6. Assuming in No. 5, Shiela opted to choose the 8% gross income taxation, her income tax payable is:
a. P250,000 b. P180,000 c. P150,000 d. P80,000

7. Based on the original problem, but the professional fees is net of P50,000 withholding tax, compute the income
tax payable of Shiela for taxable year 2018:
a. P371,980 b. P182,480 c. P198,480 d. P317,980

8. Based on the original problem, but the professional fees is only P350,000 gross of P50,000 withholding tax and
Shiela opted to choose the 8% gross income taxation, her income tax payable is:
a. P171,700 b. P194,200 c. P148,000 d. P342,200

PROGRESSIVE INCOME TAX TABLE Section 24 of the NIRC as amended by RA No. 10963 – Train Law
OVER BUT NOT OVER TAX SHALL BE PLUS OF EXCESS OVER
0.00 P 250,000.00 P 0.00 0.% P 0.00
P 250,000.00 400,000.00 0.00 20% 250,000.00
400,000.00 800,000.00 30,000.00 25% 400,000.00
800,000.00 2,000,000.00 130,000.00 30% 800,000.00
2,000,000.00 8,000,000.00 490,000.00 32% 2,000,000.00
8,000,000.00 0.00 2,410,000.00 35% 8,000,000.00