chapter 7

Created by

Mary Izabelle

Cards (20)

the 250,000 income tax exemption for individuals is designed to be in lieu of their personal and business expenses
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there are two types of regular income tax: proportional income tax for corporations and progressive income tax for individuals
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NRA-NETBs and NRFCs are also subject to regular income tax
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all taxpayers are subject to final tax
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taxable income is synonymous to net income
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for all taxpayers, taxable income means the pertinent items of gross income not subject to capital gains tax and final tax less allowable deductions
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all taxpayers are subject to regular income tax
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employed taxpayers can claim expenses from their employment as deductions against their compensation income
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items of gross income subject to final tax and capital gains tax are excluded in gross income subject to regular income tax
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non-taxable compensation are items of compensation that are excluded against gross income
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the tax due of corporations is determined by multiplying their total gross income by 25%
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the taxable compensation income is computed as gross compensation less non-taxable compensation income
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the deadline of filing the corporate quarterly income tax return is the same with the deadline of the quarterly income tax return of individuals
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business expenses can be deducted against all types of gross income subject to regular tax
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no deduction shall be allowed against taxable income
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only corporations may incur deductions against gross income
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the gross income from business is measured as sales or gross receipts less cost of sales or cost of services 
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the tax due of individuals is determined by means of a schedules of tax rates
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the deadline of annual income tax return of corporations using the calendar year is similar to the deadline fixed for individual taxpayers
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every individual taxpayer is exempt from income tax on compensation up to 250,000 annually but the same exemption does not apply to business income
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