t
T
o. Scopcoflfn
'*-*fl*mmTmHA
The povrieroJ taxation is anffi'fir.7,
!
h. ilt'Ettrtffihrha
6nSd.ri6Got$.
Lc$r|rtnub
Detsnnhl
i. &rittffrl$bof
a Soord?a,
ffi(€*tffor
Tax5don)
2. Inffi hnct ol
a. Inhercntpor€fs
use up(rl
b. llir$qitieAmong
thf||f* Inturl|lt
Fowclr the SbE tnei{sd with private rights'aM
RsSA:The Revlew Schod of
or classof individuals
or classof
I&ryrdq-e"t.tsgryner_01_9-_pqrtisshtpr9pe$r___.*
ql_EI_iD. - ----l
lbe f9[!Lolgr_9t9qonandbenefit
Egsye!9q!_qlEl-iD*lbefgmolp.r_9te_cgote!.1j_krcfit
Itooirectandrffi.edidte ben#'tcinryiuiiiaJffit arise-ffil
9qq!qn'-c_$!f'qeq{!99!e!yldaCI!im_qglque injuriaor damage_-!4!ho_{
Jljy11rl_ l
Madglyillry_of!E p-r.9pqry*tgke!_tgrn_h!rn___ i
Taxesb€comep?ft of publicfunds
gllrtlq-tb9!=eji9,I9$!:ala!-qt"-tlrrejnjurioqsVtg_cjt-pppg-rL
rhs!-qj:!r-qn{ef EiqejreE
-o_r_te!9t[lspepqrq.esgt_sryniithafi
... r I
-- - --. -l
=El{D=-
TI|OT: Mwqtitl frtG *ttr- rnm to bvk; otf,r''lr lo Uak twrd. -.tUthm Afthur Watd
..: ' ,
" -'=.h
ReSA '-l*: i'1'
TheRedewfthoof of Accountancy-
8Tel. No.Zg5-9Boz& rc4:gg$g
TAXATIOT{ TATTIAYO/GARCIA
2. Inhercntlimitations
a. Publicpurpose This is the purposeaffectingthe inhabibnts of the State as a mmmunity anOnd mercfyas
individuals,
ttre pfope{tvof a forebnstateoroorcm@
d. Doubhtaxaton This meanshxing a person,propertyor rpht twir- within the samercar bf tlrc sametaxing
?@edtv,
e. Govsnmentagerdes perfiormirggsr€rftrnrtal fundbns are etemlt front tax unhss
expresslytaxed while those performingprodetrry functionsare su$ect to tax unless
expressly
exemded.
t t{qn -dchgrtion of thG
porvet to taf
l) TGft of rhhfful
t lltbn
l) Trx ffi lorpdne A tax levted for a privaE, nti_d*; i tadlout dr:
pulDosa prcess of law as t is,W fE-pof,lr d thti oorsnnrent to imDose.
3) Inctrnud@ffc
purpoN.
bridgesard pirs;
1) Ter tarfs qpGlttG Thetil laws(andthisis trm of rfl larvs)oo nc ofrii*e q a ffiterritorial limits.
'wilfrin
bdlbrlrl lftnlt
2) Pppertywfro$yor Rtperty ud#r is whoflyor exdusirrclyrvlsrin ttn jurisdLtion of anffi
erclucively In otlnr Ureft*ecfion fur yyhid a tax is supposedto be cqnpensation.
D
Sttbil*t Sitts
! Polltax on persons Residenceofthe person
State where the property is tocateU*trdtrer *re ownei is
residert or not
3) Tax on tangiblepersonal Sbte where it is phy$cally lqoted although Sre owner
properties residesin anotherjurisdiction(bxi rei sitae)
4) Taxon intangible Domicileof the owner(mobiliasequnturpersonam)
persolmlproperty
5) Incometax, State wherethe taxpayeris'a residentor citizen
6) Business,occupaUon and Place where the business is done, or the occupation ii
transactiontax l0gq9!4_!! !flb9_!!e!!qqion took ptace
7) Tax on gratuitous Statewherethe transferoris,/wasa ciUzenor resident, or
in several taxing
1) Provisionof exemptions;
2) Allowanceof deductionor tax creditfor foreigntaxes;
ll,Il-ei,t]p_s--W(h ._-_ _ ,.
-o,!h9l_stq!e9:..-:_ .l
c. International
fnhrnational comity means friendly agreementand interactionbetween
&,---
Gs\rennnfnt agqrcies qitvttn lentat
expresslytaxed.
proprietaryfunctionsare
2) Deprivatlon with due Any deprivationof life, litlerty, or propertyis with due procesi n it is Oone:
pnooesi of law a) Underthe authorityof law that is valid or of the ConstituUonitself, anO
b) After ompliane wtth fair and rcasonaHemefrods or proceduresprescribedbv law.
3) Procedural duc proes due prccessin judiciatprdings
Procedural raquires"m
judgmentis rendereda@ing one'spersn or prop€rty."
4) Requirercnt of duc Due processin taxationrequires:
prooes a) Tax nnrst be for public purpose;
b) tmposedwithin the tenitorial jurisdiction;
c) No arbibarinessor odpressionin assdrEnenta!!d cdlection.
-=EllD=-
THor: rt is ttot the man who has tw h-tae who b pur, Dut the one,who crave mora.
-*twa
ie
,.
ReSA
The ReviewSchoolof Accqrntancy
8Tel. No. 7gS-98o2& :34-g989
TAXATION TAT'TAYO/GARCIA
2.
a. As b Sopc 1) t{aton l - imped by the NationalGotemrert (e.9. incometax, estate tax, donor's tax, value
addedtax, other percentageta)€s, docurnenbrystamptax.)
2) f.odldr l|rf,rldp.l * impced by munkftul ccrFratirns (e.s. r€ol e6teb tax, ornnuanfrvtax.)
b. As to wlto beart 1) Dtucct - Tax whlch is'dbmandedftom the pensr wtro also *rotibars tte burd.n d tax or tax wtrich
the burden the taxpayercannd shlft to anofier (e.9. incofli€tdx, estaE tax, donot'stax).
2) Indirct - Tax wtildt is demandedftom one personin the ocpectationand intenticn that he stnll
indemniff himself at"the expenseof another or tax $,hadl'can be strtfted to andrer
perrcn (e.9. value'addedtax, other percentaqetaxes)
c. Asto t|te f) Spcemc - Tax of fixed arnount imposedbl, fte ttead or riumtler, or by somestafidardd rveightor
detenr{nedon d measurernent. It requil€s no assessnmt off|er than a li*ing or cbsdficatlon of the
tfrc rmpt 'gaects to be taxed (c.g: aGe t* oe cigsr, dgartites aftd Hqirofs).
2) Ad valorcm - Tax of fixed prcpoftion of the vafueof the ptoperty wtth respectto whicfi the tax is
assessed.It requiresthe ht:rnfrtlr d assessorsor appraisersto estirnatethe valueof
sucfi propetty be6o|eUE aflsrtt d. *trn eact taxpayercan be determfned(e.9. VAT,
l1qprng@\, dono/s trx md estrEUr().
d. As to purpocC f) Gcoard/fredr*rroue - Taxirnposedsolelybr the generalpupoe of the gBrr€rnmd,i.e.,to
rai* rwenuefor gcnrcmment expendlbres (e.g.itpme trx, dono/stax and€statetax).
D !$rga/tfffrOry - Taximposedbr a speciicpirrpose,i.e.,b acfiierrsomesochlor economic
erub irrespectiveof drfier rE\renueis achnily raisedor nd ($€. tariff and certain
__ _4det on imports).
e. As b OUGct ar
snblcct nsthr
b. From specia|raseesmart
qehlawrpt tisa
hineflts resultingfrom pul
2) Distinction Tar
betvreen special a) Leuied on'what Leviedon landonly Levied on persons, property or
assessmcnt and the exerciseof privilege
tax Not a personal liability of the PersonalRability of the person
IqtrC! assessed taxed
c) Basis Based wholly on the special Easedon the necessitieSof the
benefitsto the propertyassessed govemmefltwithout any special
( benefit directly accruing to th€
taxoaver
d) Apdicafioo Exceptionalbottr as to time and Hasgeneralapplication
place
c, fntemal nevehue Inbntal nenmtte refers to taxes imposed by the legislatureotter than dutrcs on imports and
exports.
d. Customs duties Custutrc duti6 (or simply dulb) are taxes impoeedon goods exportedto or impofted from a
(or simply country. Customsduties are reallybxes but the latter is broader.
duties)
e. Tariff Tarifrnray be usedin one of the fdlo'ving thrce senses:
t) A ffi d rafw drawn usualfyin alphabeticalorder corltainmgthe namesof several kinds of
merdnMise with the correspondirqdutiesto be paid fry the same.
!"flne da,b pyabbon goodsimportedor exported.
3)The g rr orodnfuditdnffiaon the imoortationorexoortationof qoods.
tlom
e. Emilon llom Wffi llotn bffi is I grd*d hnmfi, dlgrtss or impfied,to partodin p€r$rit d
taradon deflned corpoGtions,or to personsor corporationsof a particularclass. from a tax upon property, or an
excisetax wfrirft persom and corporabm gclt telly nithin the sarnetaxing diffi, are obligedb
Day. '
b. G|adllcrdor of 7) frqgrw or alfuffivc - These are eleress prwi$ons in the Const'rMion,stahJes, Serti€s,
cxcmpdorr ordinanm, francti$esor gtracb.
2) Iffi r wrr&, by oatWn - Thls occirrs nfien a ter is ks\dedon certain classesof
persorq pr€pertbs a Uansedixrs withorrt rertioning
other cttsss. Those nd mentioned arc deemed
' o(€mDtedbv ornission.
c.Inttrp]rtttor| ot Exempdongfiantsarc strictfy construedagdft* ttrc person,entity or prop€rty dalming exemfion.
crctrpdon irilrt orp d.amim nust lusbfv $l€h ct$m bv dear ard oositire srant
The lm$ of &trr&tt coft?Smds to the lmpodtim of the tax, $nW tefvs to the tranfer of tax and id&trc mnsi*s
of the oaymentof the tax.
9.
a. Shifling defined
b. Xindsof Crifting 7) tutrad shlfiiry - This takes pfacewhen the burdenof the tax is tansfened ftom a factor of
ofdistrib'tion
untilit finafly
settes
onthe
ffiS1r;ffi[ffiffi:
_2) bchnd shirUng - This is effected when the burden of the tax is trarrsfered ftom the
customeror purchaserthrou{h the factors of distributionto tfie factor of
production.
f) Orypd *mtry- This occurswhen tax is striftedtwo or moretime either forwardor bachtard.
-=EilD=-
THOT: Llfe aslrs of every individual a antribution and it is up to ttnt indin:duat to diwver what ft drouV b.
- VictorFnnkl
The Reviewfthool of Accountancy
tTel. No. ZgS-98o2& :g4-3989
TAXATION TAI|AYO/GAR,CIA
A|VDATTTHORXTY
TX 16O4: PQWERS (PGRTAXCOLE)
OFTHEQglrlrrS$IOfrER 9F rlrTERrrAr REyEITUE
rg and to Dedde Tax Carc (Sc.4
A. The powerto interpret the provigqnsof fte Tax Codeandrotftertax laumshall be under the exclusiveand orpinal
jurisdictionof the Comrnissiqrcr,subjectto reviewby the Secretaryof Finance;
B. The power to decirle displted asses\ments,refurirls d internal revenue taxes, fees and otfpr drarges, penatbs
imposed in relation thereto, or other matters arising under the Tax Code or other bws or portrons thereof
adminlsteredby ttc &neau o,f Internal Rerrenueis vested in the C-ommi$ftvler,slbiect to the o<dusiveappellate
C.ode,or when there is reasonto believethat the bqoksof acounts ard oher reords do rpt conectly reffectUb
declaratons'made or to be made in a retum requiredto be filed under the prwisions of the Tax Code, the
Commissioner,after taking into acmunt the sahs, receipts; inorne or o&ter taable base of other perpons
engaged in similar buslreseesunder similar situations or cirqtsnstancesor after mn rtering offrer rele*ant
infomiatfrry may pressribea minimumamount of such groesreceipts,salesand taxable base,and sudr amount
so priscribed $tall be prima facie conect for purposesof determiningthe intemal revenue.tax liatrilitiesof suctr
persons.
The Revi€w Scilrool of
lTel. Ho. 735-9EO7& 73/r-3989
TAXATION A. S. TATIAYO
TX SOt; $tcOilt TAX(IilOIVIDt ltS, ESTATES
AiD TRUST]$r
l.
a. Citizens
Pssl"oo f$4"
hrctutss 180da.y rU(fv
t1 (
{*t'1,,.
' ) tP
t"o{
z. Fcill}dG
a. Anlrd,hwln ts . P )oo(
ruhrln furhrCrlludr , )oo(
eamltp pur*t . )ofi
olrffiql
inomr Glnfoinr
tro.l7OO)
b. Qstrturrly inoome
brcfrridftsrelf-
edrpb}td
inOividnel+ efit€s
'
aild ttuds inctuding
$occwlft hBlnGas
arul colrpencation
'- incomc (BlR Form
No.17O1Q)
no(
bo<r
Taxdue [Sec.24 (A)]
Less:Tax creditslpayments - .
:*
Prioryears'excesscredits XXX
Tax paymenVsfor the previousquarter/s XXX
Creditabletax withheldfor the previousquafter/s XXX
Creditabletax withheldper BIRFormNr:.2307far this quarter xxx
Tix peiidin returnpreviouslyfiled if this is an amendedreturn XXX
Otherpayment/smade XXX XXX
Tax
Grosscompensation income
Less:Non-taxable income/exempt compensation xxx
Grosstaxablecompensation income xxx
Less:Deductions
Premiumpaymentfor heaithand/orhospitalization insurance xxx
Personal exemption/exemption for estateand trust xxx
Additionalexemption XXX XXX.
Totalcompensation income(excessof deductron) XXX
Sales/revenues/receipts/fees (net of salesreturns,allowarices and discounts)xxx
'Add:Othertaxable/exempt incomefrom operations,not'subjectto
finaltax gx
Total safes/revenues/recei*sfees xxi
Less:Cost'ofsales/services , XXX
Net sales/revenues/receipts/fees XXX
Add:Non-operating taxableincome .xxx
Grossincome xxx
Less:D,eductlons (optionalstandarddeduction/regular allowable
itemizeddeductions) xxx
Net income xxx '
Less:Excessof dedudtonsover taxabb compensationincomeor
the tdal decluctions,if there is no compensationincome xxx
Taxable/exemptbusrnessincome/incorneftom profession xxx
Totaltaxableirrcome ixx
Regularrate Vo
lfEome tax due uirder regularrate {xx
Add:Incometax'dueunderspecialrate XXX
;fotal incometax due
5.
a. Tarpayers allowed to 1) Residertcitizens;
c{aim bask pcr$onal 2) Non-resident citizens;
eremption 3) Residentaliens;
4) Non-resident (subjectto reciprocity);
aliensdoingbusinessin the Philippines
5) andtruSs.
Estates
otd l{ew
f) Single(includinqmarriedbut legallyseparated, lrridow
or widower) P20,000 P50.000
2) Head of family P25,000 Ps0.000,
j).Married(for eachviorkingspouse) P32,000 P50,000
4) Estateandtrust P20.000 P20.ffiAt
8- Prg|rdurn P.id ot
ftsurattae taten Uy tfre taxpayer for: himself,
indudinqhisfatnilv.. aM -:gi1tqr^tlw!'nC$e texablevear
namltvper y€tr or P200per month whktrerreris lower
P2.4gOt;ry.
c Gio**''lfiinmcqf
familythat cen daim
oremlum dcduction
d. Total family inoome
** r
,t /'
01r)
orr !
rot?
*)l
ry
Ee)
;-;
100,000
700,000
200,tt00
inc{m€, Singaporg (grosssales,P800,000)
Gross'b"usiness @o,oQq
Buslnessexp€nses,SingaPore 150,000
1 - ilow muchwa6the taxableirrcomed the hushnd and wife usingitemizeddeduction?
![e- bu$gld alld:vlle,usinggpli-q!?!$altEa-r!-99-ductg!]
much1y99-thq-leXgl|e-tlcqge-o,f
a. Taxpayer matrhs or ia
iatd
tx! 6lpar ;;marriesoniniir
6lpa!;;marries inaveiOO
iniirinave nron
ir CIpenoenii
i6OnronirCIpenoeniiOurirt tta t, the*l
Ourirt OitiiEaOG-
OitifiaOG-yea'1 the
shall hava:lddition l additionalexemption,as ttre casemaybe, in full I
additionai
taxpayermay claimthe corresponding
depandefsr during for suchyea'r. I
I
tfTffiGffiq;mlffifiA"tlia ta'abGt""'1hisesdi;;ay stillalamth;pe'sfiala"d--l
additionaieiemptionsfor himsetfand his dependentsas if he dies at the closeof such
. 'i l . '*- - " f - - . . - -
-rxio
b, Dcflnftlptt of trust ilijst i*;'ght on propetty, rearor-peisonit, bv one pirty for the beneft of
ardher.
1) A tfrtst is a
incoffie.
2) R trust iS a t$xp€yer if under the terms of the'trust the fiduciary mav accumulateor
.-:_d!Ftrih,te-!!g.j!q9@ids_gtxt$i.gt',,
-._-
or principal
ofthecorpus
'iifr-un'dettfretermd thetru* thetitleto any.part of thetrust
rnaybe revested.tothe grantor,the incomeof the paft of the corpusor pri6ipal shall
lrF taxable
bg LEAqurE to the grantor.
2) tf urder tfre term of thq trust the incomeof the trust shatlbe apphedfor tl
the grantor, the irFofnetEt sflall be'ap{|liedfqr the benefit of the grantor shall be
_.__"!aXC& to tb.€qrantel----- - .j , -*,--*-**---,
Wtrenin istate or a tru* is a taxpayer,a distributionof the year'sincometo an heiror
6gngfi€iary is:
1) A,lpag*tl rtem of dedudion br ttn
itemof to the heir
Grossincome XXX XXX
e. Computatlot of
taxaHcinsnrcof Less: Huctions
tteer' teortftiit Business€xpenses
Di$ributionof year'sincometo the heir or beneficiary LXJ
XXX
Net inconr€ before exemPtion
LesS: Personalexemption xxx
Taxable net income xxx
Taxdue [Sec.24 (A
.. WtorildlflG0rc ffiin anv ffdtriary capacitvsfrallfile the incometax retum for 3n
ruturn? es*aE a trust:
1) Gsdisns; S) Receffttrs;
2)' Trustees; 6) Consefvators;
3i f-:recrnors; 7) All dtrer persor6or corporatitcnsactinglasnduckry.
4) Afifn6trabrs; ,. -
b. fnonrc,fionr bolm
or Drecllce o[
.*-4
Fir* omrter bil 15
pnottlflorl st@dqtrtcr Arxl{Jst15
- Third quatter t{ocrnber15
Fln l di*d rutu!! Aoril 15 of thc sucerling Year
of bilic
as
Yes
children Yes
Yes
Yes
Yes
Yes
EilD
{
: - ! t F: -: i : : l
"t
-Tj v 1
l. Sec. 24 (A) -.lhe tar shatl tre @mpubd ol taxable lilcomc ln eccordance rri$ rrd at tftG rGr lrtrtfidEd
in the follrowing sclicidule (resident citzens, non-tecident ffirr, ruaidcnt elllrr, Ste end trost):
Over But not over The tax dr.ll be Flus (Xercesc over
P 10.000 so,h
P 10.000 30.000 P s00 10% P 10.000
30.000 70.000 2.500 15o/o 30,000
.70.Ofi) 140,000 8.500 2A% 70.000
140.000 250,000 22.s00 25Yo 140;000
250.000.:.., ! s00.000 50,000 il% 250,0m
s00.000 ' 125.000 32olo 500.000
provided, howeyer, that the tax on dividends shill appty onty on income.r*ba#I'V, afterJanuary t, 7gg8.
tncomeformingpart of retainedearnings as of December31, 1997shallnot, evenif declaredor distributedon or after
January1, 1998,be subjectto thistax
5) Exercises:
a. Identirywhetherthe followingare subjectto flnaltax or not. Taxpayeris.RESIDEI{TCffIZEtl unlessotherwisestated
(Y/N).
Finel tax?
i r''teg$lr9n-!51-op.!er-De
3L jnteiest 4k-dspqsi[ -Qal&New
Erst-ulA -Ye(_
-
?l of depositsubstitute,
incomefrom a debt instrumentnot wrthinthe coverage
Lhilippines _
ql?.dep99,q-s-q$!it-ul9'"ft1!
rrqrne !e!Un$IUng!!w,'!!i!-I!-e"S.9y9!qge
InteiesfirrcomC
ilffi6 on$"etnrent OeOtln-strumint of numberof lendersat tfre
and securities(regardless
timeof the
elg'va q|q.!fl ipi!!t!!,.
00q PhiliPEfleg-
!o P30,
to P10.
000
!o_!!Q000,_PhiliPPrFs
I
4
y6r
dornestic
periodof i0 ye.ars
d--maturity
t An--in;trument-rt-ttt was Mn X (;;esident citizenXoi z yearsand wastransferred
to Mr. Y (a residentalien)who, in tum, hefdit for 8 years. How mwfr is fnat withholdingtax due?
r'rr.xtYa to|,
Mr,vllq Ery
citizen)for 3 yearsandtransferredtt
c. An irrtrurnentwrth maturityperiodof 10 yearswasheld by Mr. X (a non-resident
y
to Mr. (a residentalien). Mr. Y held it for 2 yearsbefore transferring
subsequently it to Jvlr.Z (a residentcitizen),who
held it until the- day of maturity or for 5 years. How much is the final withholding tdx due?
;.'f tYa tyl,- rtr.v
Ntr.vl,YA n'1,
l,Yl,-l,o'1, t'tr.
ur.zz SUr( gtft
ltfit ?l!
W4et
zii;\
TAXATION - Tax Rates for Individual Taxpayers, Estate rn\r /" \L
/.-n"se'i\
-.!
v 3- Caoital Gains Tar
i. Sec..ZC(C) - Capital Gains from'Sale of
Shares of Stock not Traded in the Stock
Exchange
ijx base:Netcapitalgains
Tax rates: 5olo- not over P100,0O0
107o- excessof P100,00O
ti
-/
Sale, barter, transfer and/or assignment of
sharcc of stock of publldy-listed cornpanies
not compliant with mandatory minlmum
pubtlc owncrCrip (1096 of tfie publkty-
listed companhe- isued and ouBtanding
shanas, exclusire ofany fteafsry shares)
(RR No. 16-2012)
Tax base:Gtrc'selling pte or fair market ')
O. Sec. Zl (D) - Capital Fairri from Sal€ of
Real Propefi Clasetfed as C-aPatalAss€t vaftxi whlctever is higfcr
(Located in tlc Ptrihpoincs) Tax rate: 606frnal tax
c. Dispositon of rcd ptogcrty classllled as tne tax te4fe imposedshallbe d€termineds'ittrerunderSectlwr24
capital aesgt by indMdual b Ule (A) for the normalrate of incosnebx br individral citizens'or
governmcnt.or any of hs PoliUcal ' resklentsor under S€dion 24 (D) (1) fiorthe final tax on the
subdivbions or agenche or to GOGCs presurnedcapftalgins of propertyat 696,at the o$ion of the
taxoaw-seller.
d. Eremgtior ftffi i{tf'c.pmet gElns bx on 1) Ercmpt erccccCs
sale/transfitr of tttltldprl rucidence Caprtalga{msree{nedb haveb€enrotEed frornthe sde or
disoositbnof tneir principalrsiidcr|oe by n*ral pel the
procedsof whichis ftSry
nerfl6|inrbtl t€sketrc from the
&te of sde or dismslti:n $all exer$ from cadEelSair|sgrl
2) bt|orrfnatrr|t
The h&€rltanseree $dl withtd ftont the gellerard sftail
deductftorn the agreedseflingprle/cons*ieratioo t|re 60,6capibal
gshs tax whictrstrallbe depodtedin cashor manage/scheckin
interestbearingaccountwitfi an Au$orizedAgent Bank(AAB)
under an EscrowAgreementbetweentfie concernedRevenue
DisHct Offiaer.the S€tl€rand the TrarHieree,'andfie AA8.
The hidorical co6tq adicted basisof the real propertysold or
disposedstrallbe canhl over to tfre nelv prirrcipdr€i(hnce buik or
acouircd. i-ii,'--
Taxrbh pordon lf ilfin 'If there b no frJl utiliz{ion of the proceedsof saleor disposiUonof principal
rrtllir#on otpfiofidi rrsirhc, t'le potton of tfie galn pre*med'tolpve beenrcalizedfrom the saleor
dapoetton $all be suhFtto
Ttrcltrthrodlu is
\ Unt*illredmrtixt x Taxbase
C{osss€f,irqfix
Compr*atimof l*mC o* Frfs of the newprincipalresidence:
UtilEedpotttq| xtltstoricalcofr,,:"
Grrrrss selhrg orice
j, Filingof FinalCtpltrl6.lng 1) Aft€r depositlrg the rrurrt reptresentirythe 6% capitalgins tax, the
Tax R€turn on 3.f€ of Buyerffrafisfu anO'd,b-Sc.tter, shalllrindy fle, witfiin Utirty (3O)daysfrom the
prindpalrocldcne date if'sale or dispositionof the res&lenct,with the RDOhaving
prirrcipal
jurisdictionover the property,in duflicate, the FinalCapitalGajm;TaxReturn
corering ffie propertyboughtwitt no computedbx due statingthat the
supposedtax duefdrnoufit,sowithheld bYthe buyer is malntairredin an escrow
aecount,whkh afnountwill be usedto sati#y futuretax liability,if any' on the
subjecttran'iaction.
2) Forpurposesof capitalgainstax€therwisedue on the sale,exchangeor
disp'osition.ofthe saidPrincipalResidence, the exeotion of the Esctow
Aqreementshallbe consideredsufficient.
5. Exercisea
P 60,00q
+r
Salary,Philippines
Grossbusinessihcome,Philipplnes (grosssales,P1,200,fl)0) 500,ft)01
Business expenses,PhilipPines 180,00q
- Grossbusinessin@me,USA(grosssales,P1,500,000) 900,000{
Business expenses,USA . 300,fix
Interest incornefrom bankdeposit,Philipdnes t1 so,ooo
lnterest in@mefrom bankdeposit,USA 70,0001
Iraelest incomeftorn dorne*ia depositorybank under EFCDS t I 80,000'
Interest inconrefrom a detr instrun€nt no[*inin the correrageof deposits,,rbsbtute, Philipirres,
grossof 20% creditaHewithholdirg tax 50,000\
Interest irrcomefrom a debt instrurnentwithin the coverageof a depositSubstitute,Philifftneg fr 60,frx)
Royaty on book publishedin the Phllippines f-I 100,(n0.
Prizein a contesthe ioirEd in the Phitippines
PhillpfrineCharitySupepstakeswinnings
l,ryh
1,00,0('0
Gainfrom saleof $ares of stoc* nd traded throughthe bcal stockexdange g#4 tfi,ffi
Divldendreceivedftom a domesticcprpctraton fl' 40,00fvv
Tax payments,RrstttFee (3) quarters 100,000