On each transaction below, determine the tax type whether it is subject to Basic Income Tax (BIT), Final Withholding Tax (FWT) or Exempt (E) from income tax.On the tax rate column, write the respective rates of the tax type from 0% to 32% , Exempt or Graduated Tax Rate (GTR). TRANSACTIONSTAX TYPE TAX RATE1. Royalties, books published in the Philippines2. Interest from overdue accounts receivable, Philippines3. Interest from peso bank deposit, BPI, Quezon City4. Interest from US dollar bank deposit, BDO, Manila5. Prizes amounting to P30,000, Philippines6. Prizes amounting to P10,000, Philippines7. Compensation income, Philippines8. Gain from sale of car for personal use9. Dividend income from a domestic corporation by a nonresident aliennot engaged in trade or business.10. Interest income from long-term bank deposit by a resident alien.11. Dividend income from a resident foreign corporation.12. Gain on sale of real properties used in business13. P15,000 other winnings, Canada14. P10,000 Philippine Lotto winnings15. Interest from a foreign currency deposit in Australia by a nonresidentcitizen.

Withholding tax is the tax which is deducted by the person incurring expense. When salary is paid by…

ansaction below, determine the tax type whether it is subject to Basic Income Tax (BIT), Final Withholding Tax (FWT) or Exempt (E) from income tax. On the tax rate column, write the respective rates of the tax type from 0% to 32% , Exempt or Graduated Tax Rate (GTR).

ansaction below, determine the tax type whether it is subject to Basic Income Tax (BIT), Final Withholding Tax (FWT) or Exempt (E) from income tax. On the tax rate column, write the respective rates of the tax type from 0% to 32% , Exempt or Graduated Tax Rate (GTR).

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter16: Multijurisdictional Taxation

Section: Chapter Questions

Problem 18P

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

On each transaction below, determine the tax type whether it is subject to Basic Income Tax (BIT), Final Withholding Tax (FWT) or Exempt (E) from income tax.
On the tax rate column, write the respective rates of the tax type from 0% to 32% , Exempt or Graduated Tax Rate (GTR).

TRANSACTIONS
TAX TYPE TAX RATE
1. Royalties, books published in the Philippines
2. Interest from overdue accounts receivable, Philippines
3. Interest from peso bank deposit, BPI, Quezon City
4. Interest from US dollar bank deposit, BDO, Manila
5. Prizes amounting to P30,000, Philippines
6. Prizes amounting to P10,000, Philippines
7. Compensation income, Philippines
8. Gain from sale of car for personal use
9. Dividend income from a domestic corporation by a nonresident alien
not engaged in trade or business.
10. Interest income from long-term bank deposit by a resident alien.
11. Dividend income from a resident foreign corporation.
12. Gain on sale of real properties used in business
13. P15,000 other winnings, Canada
14. P10,000 Philippine Lotto winnings
15. Interest from a foreign currency deposit in Australia by a nonresident
citizen.

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