300,000 500,000 300,000
Chapter25: Taxation Of International Transactions
Section: Chapter Questions
Problem 30P
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Question
Determine the final tax on passive income.
(PHILIPPINES)
Transcribed Image Text:An individual (Resident citizen) earning compensation and business income provided the following income (within the Philippines unless otherwise stated) for the year:
Basic salary (Net of withholding tax)
400,000
Withholding tax on salary
30,000
Director's fee
300,000
Business income
Rental income (gross of 15,000 expanded withholding tax)
500,000
300,000
Business expenses
150,000
Cash dividend from domestic corporation
90,000
Stock dividend from a domestic corporation
50,000
Cash dividend from resident foreign corporation
70,000
Interest from savings deposit
30,000
Royalty income in general
40,000
Prizes from contest won
5,000
PCSO winnings
8,000
13th month pay
50,000
Christmas bonus
22,000
Mid-year bonus
16,000
Compensation on damages from injuries and sickness
100,000
Proceeds from life insurance coverage of his deceased father
250,000
Vacation and sick leave pay
50,000
Proceeds from his life insurance (70,000 represents his total contribution)
150,000
Unused monetized vacation leave in excess of 10 days allowed de minimis
15,000
benefit
Bad debt recovery (From a previous write-off with a net income of 10,000
before write-off)
70,000
Local tax refund
20,000
Prizes received from a charitable activity
15,000
Properties received by gratuitous transfer (income from property, 8,000)
20,000
Determine the final tax on passive income.
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