ohshux identification

• A graduated tax is an income tax that adjusts in relation to the amount subject to taxation.
• RA 10963 [Tax Reform for Acceleration and Inclusion Law (TRAIN Law)]
• FINAL WITHHOLDING TAX 

  -is a kind of tax which prescribed on “certain income” (interest income, dividends, royalties, prizes and winnings)
• A final tax represents the full and final payment of the income tax that is due from a taxpayer.
• A creditable tax is a preliminary payment of the tax liability of the taxpayer.
• QUARTERLY TAX RETURNS 

  Income tax returns for income derived from business and/or practice of profession are required to be filed on a quarterly and annual basis (regardless of the results of operations)
• INCOME TAX DUE TO MARRIED INDIVIDUALS

  shall compute separately their individual income tax based on their respective total taxable income:
• SENIOR CITIZEN AND PWDS - Whether from compensation or otherwise, are required to file their income tax returns and pay the tax as they file the return.
• MINIMUM WAGE EARNERS

  refers to individuals who are employed in jobs that pay the minimum wage set by the government.
• TAX RETURNS 

  A tax return is a form or forms filed with a tax authority that reports income, expenses, and other pertinent tax information.
• A special employee is someone who works for one employer but is temporarily lent to another employer with their consent.
• Personal exemptions are arbitrary amounts allowed in the nature of a deduction from gross or net Income for personal, living or family expenses of the taxpayer.
• KINDS OF PERSONAL EXEMPTION

  Basic Personal Exemption (BPE) 

  Additional Personal Exemption (APE) 
• Basic Personal Exemption (BPE) 

  -This is a mandatory deduction allowed to individual citizens in the Philippines regardless of the status at the amount of P50,000.00. 
• Additional Personal Exemption (APE) 

  -This is a mandatory deduction of P25,000.00 for each qualified dependent child up to a maximum of four (4) qualified dependent children in the Philippines or a maximum amount of P100,000.00.
• Fringe Benefits Tax (FBT) means any good, service or other benefit furnished or granted in cash or in kind by an employer to an individual employee.
• A tax base is the total value of all assets, properties, individual income, and corporate income in a certain area or jurisdiction.
• De Minimis Benefits 

  -Employers provide minor benefits to employees on top of their basic compensation in order to promote their overall well-being.
• Expense account may be taxable as fringe benefits or treated as compensation income depending on the nature of the expense account provided to employees.
• Co-ownership is when two or more heirs receive an undivided property from a decedent, or when a donor gifts an undivided property in favor of two or more donees. 
• ESTATE 

  Everything the person owned, including property, money, and possessions
• Trust is a right on property, real or personal, that is held by one party for the benefit of another.
• ORDINARY TRUST 

  • the income and corpus of the trust do not revert to the grantor. The trust income is accumulated and held for distribution to the beneficiaries.
• REVOCABLE TRUST 

  • a trust where at any time, the power to revest in the grantor, title to any part of the corpus of  the vested: 
• EMPLOYEES TRUST 

  • income tax shall not apply to employees who trust which part of pension, stock bonus, or pro-snaring plan of an employer for the (benefit of some or all of his employees).
• Corporation as an artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to existence.
• A joint venture is a commercial undertaking by two or more persons, differing from a partnership in that it relates to the disposition of a single lot of goods or the completion of a single project. Joint venture or consortium, in general, is taxable as a corporation.
• Tax-exempt corporations are organizations that are exempt from paying certain taxes, typically because they are organized and operated for specific purposes deemed beneficial to society by the government. These purposes often include charitable, religious, educational, scientific, literary, or other similar endeavors.
• domestic corporation(DC) - are corporations created or organized in the Philippines or under its laws.
• Resident foreign corporations (RFC) - A foreign corporation is a corporation which is not domestic, and may be a resident (engaged in business in the Philippines)
• Nonresident foreign corporations (NRFC) - nonresident corporations (not engaged in business in the Philippines).
• RCIT(REGULAR CORPORATE INCOME TAX) 

  is also referred to as the normal corporate tax or basic income tax.
• Partnership is defined as "a contract whereby two or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves"
• GENERAL PROFESSIONAL PARTNERSHIP (GPP)

  A partnership formed by persons for the purpose of exercising their common profession, no part of income of which is derived from engaging in trade or business
• GENERAL PARTNERSHIP (COMMERCIAL PARTNERSHIP) 

  Partnerships (other than general professional partnerships, whether registered or not), for income taxation purposes, are considered as corporations and are therefore taxed as such.
• Gross income means, in its broad sense, all income from whatever source, derived within or without the Philippines, whether legal or illegal.
• Income means all wealth which flows into the taxpayer, other than return of capital.
• Capital constitutes the investment which is the source of income.
• Return of Capital — It refers to the repayment of the original investment or capital that you have put into an investment.
• Return on Capital — It refers to the percentage or amount of earnings generated from your investment or capital over a specific period.