Final Income taxation is characterized by: Full taxes are withheld by the income payor at source. Recipient receives the income net of tax Payor is the one required by law to remit the tax to government Recipient need not file an income tax return Tax withheld constitutes full tax due and deemed final payments EXAMPLE: Anna is a depositor of East West and earns an interest income of P8,000 in a 6-month time deposit on year 2020. This interest income is subject to 20% final tax or P1,600. Requirements: Discuss final income tax using the names and amounts given. For example, In final income taxation, Anna receives the income of P6,400 net of tax.
Final Income taxation is characterized by: Full taxes are withheld by the income payor at source. Recipient receives the income net of tax Payor is the one required by law to remit the tax to government Recipient need not file an income tax return Tax withheld constitutes full tax due and deemed final payments EXAMPLE: Anna is a depositor of East West and earns an interest income of P8,000 in a 6-month time deposit on year 2020. This interest income is subject to 20% final tax or P1,600. Requirements: Discuss final income tax using the names and amounts given. For example, In final income taxation, Anna receives the income of P6,400 net of tax.
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 20CE
Related questions
Question
Final Income taxation is characterized by:
Full taxes are withheld by the income payor at source.
Recipient receives the income net of tax
Payor is the one required by law to remit the tax to government
Recipient need not file an income tax return
Tax withheld constitutes full tax due and deemed final payments
EXAMPLE:
Anna is a depositor of East West and earns an interest income of P8,000 in a 6-month time deposit on year 2020. This interest income is subject to 20% final tax or P1,600.
Requirements: Discuss final income tax using the names and amounts given.
For example, In final income taxation, Anna receives the income of P6,400 net of tax.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT