REVISED SYLLABUS- INDIVIDUAL INCOME TAXATION

Atty. Ma. Victoria A. Villaluz

1. INTRODUCTION

2. General Principles
3. Basic Concepts: Definitions

a. Taxation
b. Taxes
c. Income Tax

4. Short History of Income Tax Law

5. Sources of Law on Income Taxation

a. Philippine Constitution, Statutes, Regulations,

Administrative Rulings, Court Decisions
b. Features of the Philippine Income Tax Law
c. Basis or criteria for the imposition of income tax
d. Administration of Income Tax Law

i. Powers of the Bureau of Internal Revenue

ii. Powers of the Commissioner of Internal Revenue
iii. Role of Secretary of Finance
iv. Rules of Construction

I. TYPES OF INDIVIDUAL TAXPAYERS

1. Citizens

a. Resident Citizen
b. Non-resident Citizen

2. Aliens

a. Resident Alien
b. Nonresident Aliens

i. Nonresident Alien Engaged in Trade or Business in the

Philippines
ii. Nonresident Alien Not Engaged in Trade or business in the
Philippines

II. INCOME

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1. Income defined
2. Income distinguished from capital
3. Gross Income – Section 32 (A), Tax Code
4. Exclusions from Gross Income- Section 32 (B), Tax Code

III. TAXATION OF EMPLOYED INDIVIDUALS

a. Tax Base- Compensation income

b. Minimum wage earners- tax treatment

IV. TAXATION OF SPECIAL CLASSES OF INDIVIDUALS

a. Aliens employed by RHQs, ROHQs, OBUs, Petroleum Service

Contractor and Subcontractor

V. TAX LIABILITY OF PARTNERS IN A GENERAL PROFESSIONAL

PARTNERSHIP

VI. TAXATION OF FRINGE BENEFITS- Section 33

VII. HOW TO COMPUTE THE INCOME TAX LIABILITY

a. Salaried individuals
b. Self-employed or those engaged in the exercise of their professions

iii. Allowable deductions-itemized deductions

iv. Optional standard deduction
v. Non-deductible items

c. Allowance for personal and additional exemptions

i. Effect of change of status

VIII. FILING OF TAX RETURNS AND PAYMENT OF THE TAX

a. Salaried individuals
b. Self-employed/professionals