Beruflich Dokumente
Kultur Dokumente
NOLCO
YEAR Credits
Beginning year 60
2005 60
2006 40
2007 60
2008 20
2009 0
*For 2009, the remaining net operating loss for 2015 was
Optional Standard Deductions (OSD)
2006 2007 2008 2009
120 150 180 200 Gross Sales/Receipts
100 170 160 130 Less COS
20 (20) 20 70 Gross Income (Gross Profit)
Less OSD (40%)
20 - 20 - Net Income
- - - 20 Less Personal Exemption
- (20) - 50 Less Additional Exemption (3 dep)
Income subject to tax
NOLCO NOLCO NOLCO
Additions Used Expired Remarks Tax Due Ind (5% - 32%); Corp (30%)
*Aimee
0 0 0 No AFS is required: Gross quarterly does not exceed 150K
0 20 0 Withholding Tax: 720K or Less Annually - 10%
20 0 0 Withholding Tax: 720 or more Annually - 15%
0 20 20
0 20 0
152,000 72,000
2015 2016
Paid in Capital 80 80
Retained Earnings, beginning 70 100
Net Income 30 50
Retained Earnings, ending 100 150
Subject to IAET 20 70
Q: What is the tax imposed on interest income earned from foreign currency bank deposit?
A: A final withholding tax of seven and a half percent (7-1/2%) is imposed on interest income from a foreign currency bank depo
received by a resident. This tax would apply to foreign currency deposits accepted and held by an offshore banking unit (OBU)
(FCDU) in the regular course of business.
No tax is imposed on interest income arising from foreign currency bank deposits of non-residents.
A domestic corporation i.e., a corporation or other juridical person (associations, partnerships, trust, etc.) organized under the la
A resident foreign corporation, which refers to a branch, extension office or other unit of corporations or juridical persons organi
country
An immigration visa issued by the foreign government in the country where he is a resident of;
A certificate of residency which is issued by the Philippine Embassy or Consulate in the foreign country of his residence;
A certificate of the contract of employment of an overseas contract worker which is duly registered with the Philippine Overseas
Seamans Certificate, in the case of a Filipino seaman;
A certification from the Bureau of Immigration that a non-resident alien is not a resident of the Philippines;
A certification from the Department of Foreign Affairs (DFA) of the Philippines that the individual is a regular member of the diplo
and is entitled to income tax exemption under an international agreement to which the Philippines is a signatory.
For corporate depositors, the original or certified copy of all of the following must be presented:
2. Certification from the Securities and Exchange Commission that the non-resident corporation is not licensed to do business i
Q: Are there other requirements?
A: To be entitled to an exemption from the tax on interest income on foreign currency deposit, the Foreign Currency Bank Acco
resident individual or non-resident corporation. Otherwise, the interest income shall be considered as subject to the 7.5% final t
In addition, the depositor is required to execute a written permission allowing its depository bank to inform the BIR that, as a no
Without this written permission, which constitutes a limited waiver of the confidentiality of foreign currency deposits, the deposit
privilege.
Q: How would interest income from a foreign currency bank deposit be taxed if the bank account belongs to an overse
authorized representative to make withdrwals from such account is staying in the Philippines?
A: If the account is jointly in the name of a non-resident such as an overseas contract worker, or a Filipino seaman, and an indi
living in the Philippines, fifty percent (50%) of the interest income from such bank deposit will be treated as exempt while the oth
subject to a final withholding tax of seven and one-half percent (7.5%).
A: The depository bank shall withhold and remit the 7.5% tax due from the interest income derived by a resident from foreign cu
depositor presents documentary evidence that he is not a resident of the Philippines, the bank shall automatically withhold such
The depository bank is required to submit a list of all persons and corporations who were given exemption from the tax on intere
deposits. The list will be filed at the same time that the quarterly withholding taxes on such deposits are remitted to the BIR.
A: FCDU, or Foreign Currency Deposit Unit, refers to that unit of a thrift bank or commercial bank organized under Philippines l
bank doing business in the Philippines which have been authorized by the Bangko Sentral ng Pilipinas (BSP) to engage in fore
transactions.
OBU, or Offshore Banking Unit, refers to a branch, subsidiary or affiliate of a foreign banking corporation which is duly authorize
banking business in the Philippines.
A: A final withholding tax of ten percent (10%) will be imposed on income derived by an FCDU or OBU from foreign currency tra
Philippines, including local commercial banks, local branches of foreign banks, and other depository banks under the foreign cu
interest income from lending operations, bank charges, commissions, service fees, and net foreign exchange transaction gains
Income of FCDUs or OBUs from foreign currency transactions with non-residents of the Philippines are not subject to income ta
Income derived by FCDUs or OBUs from activities other than foreign currency transactions will be subject to the regular tax imp
by a domestic corporation or resident foreign corporation, as the case maybe. To illustrate, income derived by an FCDU from co
be taxed based on net income at the regular corporate tax rate. On the other hand, capital gains from the sale or exchange of s
the local exchange shall be taxed at 5% on the first P100,000 and 10% in excess thereof.
A: The person making the income payment is required to withhold and remit the tax withheld. Thus, in the case of interest paym
currency loan from an OBU or FCDU, the resident borrower will act as withholding agent of such tax.
A: Yes, FCDU or OBU must file the corporation income tax return with respect to its income subject to the regular corporate inc
return all other income derived during the year which are subject to final withholding taxes, the fact that such final withholding ta
the following information:
His/Its address
Period covered
Gross income
There is no need, however, to submit such information with respect to its interest income derived from bank deposits.
A: The regulation shall apply on taxable income derived beginning January 1, 1998. For deposits which were made in 1997, on
actually or constructively received by a depositor starting January 1, 1998 is taxable.
No penalty will be imposed for late payment of the taxes prescribed in the regulation for the first three quarters of calendar year
for the said taxable quarters and pays the taxes due on or before October 25, 1998.
(Implementing Secs . 24, 25, 27 and 28 of the 1997 Tax Code, as amended by RA No. 8424; Date of Issue: August 25, 1998; E