Gross Income

• Gross Income


  All source of income from whatever source derived within or without the Philippines whether legal or illegal.
• Income


  All wealth that flows into the taxpayer, other than return of capital.
• Capital


  constitutes the investment which is the source of income.
• Inclusions

  • Compensation
  • Business Income
  • Gains derived from dealing with Property
  • Interest
  • Rent
  • Royalties
  • Dividends
  • Annuities
  • Prize and Winnings
  • Pensions
  • Share from General Professional Partnership
• Regular Compensation

  basic salary, fixed allowances for representation, transportation and others paid to an employee per payroll period
• Supplemental Compensation


  includes payments to an employee in addition to the regular compensation
• Exclusions


  They are exempted by the fundamental law or by statue and does not come within the definition of income
• Exclusions

  • Life Insurance (proceeds paid to the heirs or beneficiaries except the interest)
  • Amount received by the insured as a return of premium
  • Gifts
  • Compensation for Injuries or Sickness
  • Retirement Benefits
  • Involuntary Separation
• Fringe Benefits


  any goods, services or other benefits furnished or granted by an employer in cash or in kind other than basic compensation (managerial only)
• De Minimis Benefits


  enjoyment of privileges that are of relatively small value