Compute the annual income tax due if Nicanor will opt for graduated tax rate
Use the graduated tax table if applicable:
GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022)
|
Over |
But not over |
The tax shall be |
Plus |
Of excess over |
|
|
250,000 |
0 |
0 |
- |
|
P 250,000 |
400,000 |
0 |
20% |
P 250,000 |
|
400,000 |
800,000 |
30,000 |
25% |
400,000 |
|
800,000 |
2,000,000 |
130,000 |
30% |
800,000 |
|
2,000,000 |
8,000,000 |
490,000 |
32% |
2,000,000 |
|
8,000,000 |
|
2,410,000 |
35% |
8,000,000 |
Nicanor is a professional Architect and at the same time an employee of ABC Corp. He made available the following information:
Gross receipts Php 2,000,000
Cost of service Php 1,000,000
Other valid expenses 200,000
Gross compensation Php 1,000,000
Non-taxable compensation Php 200,000
Compute the annual income tax due if Nicanor will opt for graduated tax rate.
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