ACCOUNTING PROFICIENCY

PROGRAM
INCOME TAXATION

JHON CARLO M. CATU, CPA

TAXES ON INDIVIDUALS
1. A resident citizen, married with 4 qualified dependent children had the following during the
calendar year ending 2016.
Gross compensation income P 200,000
Expense related to his employment 120,000
SSS premium contributions 3,600
PhilHealth contributions 2,400
Pag-ibig contributions 2,000
Union dues 1,000
Premiums on health insurance 4,000

How much is the taxable income? ________________________

2. Stacy, a resident citizen, deposited P 2,000,000 in the 180-
day time deposit of BPI. The deposit pays 8% interest.
Compute the final tax on maturity of the deposit.
3.Ginebra Team won Championship in PBA Commissioner’s
cup in 2016 and received P2,000,000 grand prize. How
much is the Final Tax to be remitted by the organizer to the
Bureau of Internal Revenue for 2016?
4. Isagani sold a vacant lot for P3,000,000. The lot has an
assessed value of P2,800,000, zonal value of P3,200,000 and
appraisal value of P3,500,000.
What should be the capital gains tax?
5. Ms. Beautiful, resident citizen, earned a gross compensation
income of P840,000 and net income of P480,000 from her
accounting firm, P432,000 from her spa business and
P2,000,000 from her dental clinic. Assuming she has P100,000
personal exemption, how much is her taxable income?
6. The following are national internal revenue taxes. Which one
is not?
A. Excise Tax
B. Documentary Stamp Tax
C. Value Added Tax
D. Import Duty
7. The following relates to a proprietorship registered as BMBE:
Dividend Income- Domestic P 9,000
Interest on Deposits P6,800
Gross Income from sales P400,000
How much is the total exclusions in gross income subject to regular tax?
REVENUE P2,500,000
COST OF REVENUE 600,000
GAIN ON SALE OF USED EQUIPMENT 60,000
INTEREST INCOME FROM BANK DEPOSITS 40,000
DEDUCTIBLE EXPENSE 200,000
Presented above are the information of Mr. Almedilla, a resident citizen, with
two qualified dependents, had a business started last December 2014 and
reported the following data in 2017.

8. If Mr. Almedilla is using OSD, how much is the total deductions?

REVENUE P2,500,000
COST OF REVENUE 600,000
GAIN ON SALE OF USED EQUIPMENT 60,000
INTEREST INCOME FROM BANK DEPOSITS 40,000
DEDUCTIBLE EXPENSE 200,000
Presented above are the information of Mr. Almedilla, a resident citizen, with
two qualified dependents, had a business started last December 2014 and
reported the following data in 2017.

9. If Mr. Almedilla is using OSD, how much is the total taxable income for 2017?
REVENUE P2,500,000
COST OF REVENUE 600,000
GAIN ON SALE OF USED EQUIPMENT 60,000
INTEREST INCOME FROM BANK DEPOSITS 40,000
DEDUCTIBLE EXPENSE 200,000
Presented above are the information of Mr. Almedilla, a resident citizen, with
two qualified dependents, had a business started last December 2014 and
reported the following data in 2018.

10. If Mr. Almedilla is using itemized standard deductions, how much is the total
exemptions for the year?
10. A citizen if the Philippines who works and derives income
from abroad is a non-resident if he stayed outside the country
for ____________________?
12. Stacy, a non-resident alien not engaged in trade or
business, deposited P 2,000,000 in the 180-day time deposit
of BPI. The deposit pays 8% interest. Compute the final tax
on maturity of the deposit.
13. Stacy, a resident citizen, deposited P 2,000,000 in the
180-day time deposit of BPI. The deposit pays 8% interest.
Compute the final tax on expanded foreign currency deposit
under Tax Reform Accelerations and Inclusions.