See record on cellphone.

Taxation laws 1 Final Exam

Pointers To Review:
*Bring permit
*Exam is on Thursday, October
19 2017.

1.) Are retirement benefits taxable?

2.) Is life insurance taxable?
3.) Exemption in Income tax
4.) Income tax
5.) Singers/ entertainers mga kinita nila,
subject for income tax (see percentage in
National Internal Revenue Code)
 6.) Who are allowed deductions from their
gross income?
7.) Motto in life
Example:
Mr. Cruz is an employee
Salary in 2017 P 300,000
Less. P.E 50,000
A.E 100,000 equals to P 150,000
Child 1 22 years old (Becomes 22 in January 9,
2011 *still incapacitated*)
Child 2 19 years old
Child 3 18 years old
Child 4 - 17 years old

If reach majority age but still incapacitated

considered still as a child. (see record)
Who is a child?
A person who is 21 years old

Who are allowed deductions from their gross

income? (Example edition)
Mr. Cruz is a businessman
2017 Business income is 2 million
LESS: Allowable deductions (what are those?)
1.5 Million over all. Natira is P 500,000 na lang
for his income tax.
Salary
Rent
May anakis siya: Magkano taxable income nya?
(see Section 24, NIRC)
Less. P.E P 50,000
 A.E P 100,000 P150,000
Taxable income total: P 300,000

Voluntary computation (tax trend)

Corporate income tax (32 percent) see NIRC
and notes in yellow paper.
Example:
Trece Corporation (selling beer)
Sales or revenues P 10 Million pesos
Allowable deductions (less:)
Bought P 7 Million worth of beer
Gross Income: P 3 Million multiply (x) 2 % = P
60,000
Allowable deductions (AD) 3 M
NET INCOME: