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  • Revenue Regulations No. 8 2018

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    Shannon Mojica
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    35 Ansichten27 Seiten

    Revenue Regulations No. 8 2018

    Hochgeladen von

    Shannon Mojica
    Rev reg

    Copyright:

    © All Rights Reserved
    Als PDF herunterladen oder online auf Scribd lesen
    Markieren Sie unangemessene Inhalte
    von 27
    ‘ome REC DEPARTMENT OF FINANCE 4G cexncty Janaary 25,2018, nevenverncurationsno, 8-208 SUBSECT : Impkmenting the Income Tax Provisions of Republic Act No. 10863, Otherwive Known asthe “Tax Reform for Aeederation and Inclsion (TRAINY” Act To _Alltnternat Revenue Officers and Other Concerned SECTION 1. SCOPE. ~ Pursuant to Section 244 of the National Intemal Revenue Code, 2s mended, and Section #4 of Republic Act (R.A) No, 10963 otherwise known as the “Tax or Acceleration and Inchision (TRAIN)” Law, these regulations are. hereby rie ated to implementthe amended provisions on Tile I~ Tax on Income ofthe NIRC, SECTION 2, DEFINITION OF TERMS. ~ Words andor phrases used under these regulations shall mess ‘Compensation Inscine -in generl, means ll remuneration for services performed by sn employee for bis employer under an employeremployee relationship, unless specifically excudad by the Code “The name by which the remaneaton for services is designated is immateval. Thus, sales, wages, emoluments and hovoraia, allowances, commissions (eg. transportation, presentation, entertainment and the like), fees including director's fees, i the dvetr i atthe same time, an employes of the employesfeorporation, taxable bonuses and Binge benefits, excep those which are subject to the fringe benefits tix under Sec. 33 ofthe Code ad the allowable “de minimis" benefits, taxable pensions ad retirement pay and ater income ofa similar nature consi compensation income b. Compensition lnsome Eamers - individuals whose source of income is purely . His wx de for 2018 sal be somputed a fellows ihe di not opt forthe ight prent (89) come tax Based on goss saleresspts and other nom ‘pertng nome: “Tal compensation income 1 1,300,000.00 Tess Wana IP month py and other baneis-mne "90,050.00 “Tesable Compensation Income 1410;00000 dake near fom Business Gross Sues 2,400,000.00 Less Cost Sales .o0n000.00 Gross Income 900,000.00 | Less: Operaing Expenses * "g,000.00 ‘Net neone from Operation 800,000.00 ‘a Non-peratng Income 100,000.00 300.000 Total Taatle Income Paaioa0.00 ‘Tox Due ‘on Panqo00.00 430,000.00 ‘On exces(2,30,000 2,000,000) 32% 99.20.00 ‘Tota Income Tax E330200.00 ‘the table income fom both compensiton and business shall be ‘Combined fr purpose of computing he income tax due ifthe twxpyET Chosen be sajoot ander the raduated income tx ats +n addin tothe income tx, Me. MAG is ikewise Tabet pay perenne ax oF 72,000.00, which s 3% of 2400.00.00 «&. On February 2019, exper tndered bis resignation o consents ons Disiness His tla cotnpensaton iacome amounted to, PYS0,00.00, inclusive offenfits of 20,000.00. His business operations for taxable year ‘hyo ema the same He opted orth eight percent (%) income x ate. ‘Total comransaton income 130.000.00 Less: Nortnabl benefits "30,000.00 ‘Taxable Compensition Income 130.000.00 ‘Tex due 1708 Compensation: (On P13,00.00 ot over P250,000.00) 200 2.On Bushes income: Gross Ses 2,400,000.00 did: Nevoperating income 00.00.00, ‘Taxable Boss Income 3,50n000.00, ‘Maite by income tx rte se “Tax Due on Busines Income Faoaootne ‘Total tncone Tax De (Compensation nd Business) _2ON0N0.00| +The option oF income tx af pliable oly t taxpayers income Tons bane, and te sane en te te income tas under the ‘radated incor tk ees andthe pereesge tax under Section 116 of fhe Tax ode, samen, Xs gc somes Gg ae ee Fee 20 2018 prenivént c * The arwount of 250,009.00 whieh is alowed as deduction under the aw feesnepyer cnming ely from selferplayment practic af profession. ioe splabe Tor mined inoome ener under the 8 incom tat onion, ‘The P250,90000 mentioned above lead Incorporated inthe fst te ofthe gute income tax aes applenble o compensation income. The xows ofthe P20,000 Dover he acta taxable compensation eames ot eredimble agrnst the nile income fem busnesspractce of profession unde he 8% income tx ate option. Ilusteaion 8: Me. WBV, an oie of AMBS International Cor, red in 2018 ‘an annual compensation of 120,000.00, incsive of 13® month and otber enefts in the ameunt of P120,00,00. Aside rom employment income, he owns 4 Ta, with ross sales of 73,500.00, His cost of sales and operating expenses tre P100,000.0 and P00, 00.00, respectively, and with nor-opeating income ‘10,900.00, His tax efor 2018 shal be computed as Follows: “Total compensation insome 1,200,000.00 Less Noman 13 month pay and other benef mm) 90.00.00| “Teale Compenstion Income ‘FTto000.00 ‘Ad: Tuabl Income fom Business ~ Gross Sales 350000000, Les Cos: of Sales 16,000.09 Gress Ince # 2,500,000, Les Opeating Expenses -60,00.00 et Income fret Open 7,900.00.00| ‘Ad Non operating Income 00.00.00 _2.000,000.00 ‘Toul Table Income Te Die ‘on P,00,000.00 P 450,000.00 ‘On exces (P,110,000 F200, 000) 32% 5.20000, “Total nce tx ve Eas 200.00 “The taxpayer as no opin o aa ofthe 8% income tx te on his income fiom busines since hs rot sle exceeds the VAT thesole. Howevey, he ‘ssl not sujet to business tx since he nature of is business transitions [VAT exengt (6) Income Tax Rates on Certain Passive Income, The following passive income shall be sujet othe fllow ng fal income tx ates: lntrests fom any samen bank depositand yield or any other monstary bone om epost subaates an ram aust funds and sna arargements - 20%; FEB 20 208 wiz RECEIVED ty tnerest income recive by a individual taxpayer (excep a oc-resient nviual) fom & ‘Sour nk nde the spn oeign urency deposit aystem 15%, Proceeds of preterminate long etn post or invest nthe form of savings, common Proidnl es! funds, depos sibttte, investment management accounts and ober or nats evidense hy eens in sic frm as prescribed bythe Bangko Sent Fre ash) te nl tax shal be bse 0 the remaining stro the investment: Four (4 years stan ie (yeas 396 ‘Tce (3 yeasts tn four (4) years ~ 12% and Les than te (3) es = 20% Akoya exept royals cn books ad ater Iiterry works and musical coments) ~ 20% Royale on hooks anther tear works and mail composition ~ 10% ries exept prizes outing 10,00 res) 20% Winnings (exept Phipine Cary Sweepstakes and Loto wings amounting t P 10,000 tes) = 208% 1 Cashand Property Diviends 10% {Capital Gains rom Sale of Staaf Stok ot Traded inthe Stock Exchange ~ 15%, ji Capit Gains fom Sale of Real Proper lead nthe Pilipinas — 0% SECTION 4, INCOME TAX RATES ON NON-RESIDENT ALIEN INDIVIDUAL: ‘Ths fllowing income tax rates shall Be imposed to norresident alien individual: |A. Non-resident Alien Engaged in Trade or Business Within the Philippines. — to general dhe incotme tx ates aolesle to tis taxpayer shall be che ates imposed on individual eset and a resident alien individual on the table income derived within the Philippines: 1B. Non-resident Alien Not Engaged in Trade or Business Within the Pailippines ~ Upon pe cne income received from all sources within the Philippines by tis taxpayer such aa canes cach andlor property dividends ens, salaries, wages, preaioms, annuities, ‘Sheraton, emuncaton,emchument, oF othe fixed or determinable senate erode or esual gins, profits, and income, and capital ysins,- 259%, (6. The preferential income tx rate under subsection (C), (D) and (E) of Sesion 25 of he ‘Tor Code, as amenced, shall no longer be applicable without prejudice to the wicadon of prefect tx rates under existing, iteroational wx treaties, if Seana Chup all cammctned employene of the regional oF sven headquarters and "lanl operating beaiqurers of multinational companies, offshore banking wits and ‘Patou serve contactor and subcontractors sal be subject tothe rego income Tix rate under Se. 24(A)2Xa) ofthe Tax Code, as amended. “This isin accordance wi the veto message ofthe President which reads as follow: OPEAT OF [ oo HEacay ng ato ye FEB 20 208 sn. omecr vero By the power vested in me by Arts Vi, Section 272) of he Contato, which prota" Pres el ave th ome ly para oo” apportion emo,” Threy restr he lion ie Hem ees tht A. Reduce income ta rte of emplyes of Regional Meauartrs (RHO Region Operating Hendguartrs (ROMS). Offhore Banking Unis (OBUS), and Patolaum Series Contratareond Subcontractors Tam onal t tothe proto ander Secon 68) of teed Bi that stem et a of bom rm “PROVIDED, HOWEVER, THAT EXISTING RHQSROHDS O8Us OR PETROLEUM SERVICE CONTRACTORS AND SUBCONTRACTORS PRESENTLY AVAILING OF PREFERENTIAL TAX RATES FOR QUALIFIED EMPLOYEES Shiau. CONTIN TO RE ENTITLED 10 AVAIL OF THE PREFERENTIAL TAX [RATE FOR PRESENT AND FUTURE QUALIFIED EMPLOYEES.” ie Sandra eld jective of he prapatal he provision lave of ol Prowcon Cleaner Seton 1 tle I of he 1957 Cosa wll thera py od nfl in the pcan ofthe bade of sion Seton No peson hl be dprve of fe, er or proper without de proces flim no sl porn be deed he qual protection of the lows In tine wth the oer comieration i the promation of amass of te uu for ini pooring sma nar Goo he sgiant eduction nthe ‘nora income te heelys of thre fm shoxld flow the regan tx res ‘cat tenia per ‘astration 9: Ms. CCE, an alien employed in MCUD Corporation tats & Patoleum Service Contaeor,ros'ved compensation income of 5,000,000.00 or 2018, nei of 400,000.00 13 month pay and other benefits, Computation of Taxable come: ‘Compenston Income s.0nq000.00 tere Non:snabe 3" Month Pay and oer benefits (nsx) 90.00.00, “Taxable Compensation Income Pa, 000.00 Tax Due ‘on 72,004,000. 1 490000.00 ‘On exces (P4,910,000 -P2,00,000) x 32% 931,200 0 “Total wx Sue Pie2u200.09 + All employees of RHQsROHQHOBUs, and Pevoeum Serve Contractors ‘nd Sutconractors shal be subject o regular ineametaxrate under Section ure oF WrERNAL EMEA RECoADS mor, ZIVISION ¢ es Bde FEB 20 2018 win RECEIVED Pot 24(AO\i ofthe Tax Code, as amended, without prejudice to the application “thet! tax soes unde exiting neonatal waren SECTION 5, GOVERNMENT OWNED AND CONTROLLED CORPORATIONS {GOCCS), AGENCIES OR INSTRUMENTALITIES,- Uist Secon 27(C) ofthe Tax ‘Code, as amended, GOCCS, Government Ageaies or Insrumertaites sal ay suck rat of tax upon thelr taxable income as imposed upon earpration or associnons engage in a Similar busines inst, or atv, exept fore alongs 4 Goverment Senice Insurance System (GSI) ba, Social Secury System ($85); Philpine Healt Insurance Corocatin PHC); end 4. Local Water Diss (LD). [SECTION 6. EXCLUSIONS FROM GROSS INCOME. ~The following sms shall et be included in gross ice and shal be exer fom income tation: A. Life surance. ~The proceeds af life insurance policies pd others benefice ponte death ofthe ised, wheter in a single sum or otherwise, but Such amounts lel by the sur under an agreement op interest hereon, te interest payments ‘hal included in gross income! Amount Received by Insired as Ren of Premium; ‘its, Bequests and Devises: po Compensation “Injures or Sickness, , Income Exempt under Tey Retirement Benois, Pensions, Gratuit. GG Miscellaneous tems. — 8 Tncome dened by Forign Governonert Income Decne by the Goverment ors Pola! Subs © Prize and Anand Prise and Awards in Sports Competition 13" Mom Pay and Other Benes ~ Gross beefs recived by offs and tmpoyesot publ and prvae entities: Provided, however, Tha the tal excision Seri en sl nt any send DGD Wha ve meee ran Fe 70 208 Age? RECEIVED “4 oe (Benefits ressived by officials and employees of tne national and kat fpovernmentgusuant to Republic Act No, 6686 (iy Bevefits eccved by employees pusuant to Presidential Decree No. 851,88 amended by Memorandum Order No, 8 dated August 13,1986; (aap Bonertg recived by oils and employess not covered by Presidential Destee No, 851, as amended by Memorandum Order No, 28 dated August 13,1986; and {iv) Other benefits such as productivity incentives and Chistas bonus £. GSIS, $88, Medcore and Other Contributions; 1 Gains from the Sale of Bonds, Debentures o oer Certificate of Indebledese with “amaariy of mre tha fle (9) years and Gains from Resemption of Shares in Mutual Fund SECTION. 7, SPECIAL TREATMENT OF FRINGE BENEFITS. ~The tox on Gia eset a ag rte oF THIRTY-FIVE PERCENT (35%) shal be imposed onthe gross-up TRonctry value of fing benefits fished or grated to an employee (except rank and Sie ‘Taployees) bythe employer, whether an individual or «corporation (uness the fringe benefit Trl by the nature of, or necessary 1 the tad, busines o profession ofthe employer, trinket the fonge benefit is forthe convenience of or advantage ofthe employer) ‘The te even imposed is payable by the employer, which tx shall be paid inthe same manner 6s provided for under Section 37 (A of the Tax Code, as amended The grossed-up monetary value of the finge benefit shall be detemined by dividing the teucl monciay value of the finge benefit by SINTY-FIVE PERCENT (65%), elective Jeary 1, 2018 and onvands: Provided, tha the grosse-up valve of the benefit shall be Geuerined by dividing the actual monetary value of the fringe Benefit by the differenos etwcen one hundred percent (100%) and the applicable ax rates under the afore subsections. IMustration 10: MRU Company (2 domestic employeleompany) granted Ms MHILCO (a Filino branch manager employes), in adition ther basic salaries, 5.00 each per quarter for her personal membership fees at Country Gotf Cub ‘The Fringe Benslits Tax (FBT) shall be computed as follows Monetary vale of finge benefit ® 5;000.00 Peroatage divisor applicable: 65% FBT ate 35% FBT- (Monctay value of ringe bene = 65%) x 35% EBT (5,000.00 = 65%) x 35% FBT= 77,682.31 x35% or n5231 OPEN OF NERA REVENUE RECORDS MGT. OIVISION G¢ ra FEB 20 2018 RECEIVED IMastraton 11 Same facts but the employe is a non-eidet sien individual ot ngage in tad or basines wits te Palippines: Monetary value of ing benef ® 000.00 Perenageevisor appeal 3% Fringe benefit te at 25% FBT (Monetary value of finge benefit ~ 7596) x 25% FBT= (25,00.00 756) x25% FBP ¥6,605.07 25% FBT= 11,666.67 SECTION 8, DEDUCTIONS FROM GROSS INCOME. ~ In general, ther shall be Slowed atthe option f the taxpayer, tego! deductions o n Optional Standard Deduction OSD) atthe ate of fry percent (4090), cao of inv txxpayers, OSD stall be Sompursl a he rae of for) pevest (40%) of gost saleseceps, as the ease may be. Conpoctions may eet standard deduction ian smeunt not exceeding ory pret (496 of iss grossineome. oweves, no deductions shal be alowed nlivitual payers crring compensation iname tring fom prsonal wervices ended ender an emplojer-employee relationship and those ‘who opted to be taxed at 89 income tx rate on ther Income fom businessractce of profession, “The following ae thellowabl teed deductions: A, Bxpenses B. Interest; Tas D, Losses , Bod Det; Depreciation: G. Depletion o and Gas Wells and Mines, H. Charitable asd Other Conbuions, 1. Research and Development; and J Pension Trans ‘Unless the tepner so table ude the rusted income nxt sigs inthe nome taxetun the feotc fo cect the OSD shall e considered as avng ale ofthe temized ‘Seductions Such lation of the option, when made in the retu, shal be reveal fo the tunable year for whieh the eur mad, The lection to claim ether the enized deductions cone met Bays g FEB 20 208 RECEIV 18177, cor the OSD forthe taxable yar mst be sgifed by checking the appropriate ox in te income tie reum ed for te ist quarer of the intial quer ofthe taxable year afer te Commencement oft new business pte of profession. Once te elton s made, ft mus be ‘Consent applied Yo al the svoeeing quately ets and in he ial neome eax ern forthe iaable yar. “The OSD allowed oinvdua taxpayers, except non-resident aes, shal be forty percent (Gon) of gross salesnceipsdutng the wanble year. Aa individual who fend to and Gained forthe OSD shal not be required to submit withthe tx retin such Fnancal Sutomentsothewise required under the Tax Code es amended. A General Profesional Partrership (GPP) may avail of the OSD nly one, ether by the GPP or the pares comprising the partes, Iustration 12; Ms. RPSW fs a promizent independent contactor who offers twctccural and engineering serves. Since RPSV's carer louise her ftal ‘yon eeips amounted to 4,250,000 .00 for twable year 2018 Her ecorded cast ff service and operating expenses were 72,50,000.00 and 1,000,00.0, respectively, She ote to aval ofthe 40% OSD. (OSD wal ecomputedas lows: Gross Receipts Archteeurl and Engneing Services 4250,00.00, Multiply by OSD Rate rr Deductible OSD Eagono0 Net Taxable Income willbe computed flows (Gross Rests Arhteetrl and Engneing Services P4250,00.00, es: OSD 700.00.00, ‘Net Tanabe Income .ss.000.00 Income ta ait wil be computed as flows: ‘Om e,00,000.00| 1 ¢sn.0000 ‘On Exces(2,550,000.00-P2,000,00000)x 329% 175,000.00, Tneome Tax Die 000.09 +The inivdual txpayer elected OSD inthe computation of her taxable income td the election i ievocable forthe taxable yee fer which the return was made. ‘Taxpayers ot equ submit er Hana semen wi histoe etm. The gress eis exceed the VAT threshold of #3,00,00000, thus, he taxpayer is subject othe gradoted income tx rates and liable for VA, in dor ioome Iestration 13: Ma. MRU opertes a convenience store while she ffes bovkkeeping sees 1 er clon. 19 2018, ner gross sles wowed $180,000.00, in aden to her gross receipts from bookkcepng sevces of ‘0,000.00 Her recorded cost of goes Sd and operating expenses wore {1,325,000 and P520/00.0, respectively RECEIVED [AL Ms. MRU optedt val of the OSD. The OSD and abl income sal be omputed 3s follows ‘Gross Sales Convenience Store »1,800,000.00 Grom Receipes ~Beokkesping *100,00,00, ‘Toul F2.200,00.09 Jess: OSD (P2,200.00.00 x 49%) ‘n.000.00 [Net Taabl come #szo.00000 ‘Tex du ‘on 800,00.00| 130,00000 ‘On Exees (1 320,000,00 ~P800,000 0) x 30% 15600000 Tova x due ‘scouna0 + The taxpyer elected OSD inthe computation of her table income this the raat income tx rat stall be applied. «The elation of OSD fs ievneble forte table year or which the earn female * Taypyer isnot equtd to sub her financial statment ith er tx + Taxpayers able for busines tx. Percentage Tas, In ation to fncome BB. Ms. MRU's income tax ibiltyishe sigs inher U® Quarter tum er intertion to be eed BY income tax ae, wil be computed a follows Gross Sales Convenience Store 1,800,000 (Gross Resp ~ Bookhexping “49,008.00 Toul 7;20,000.00 Test Aint allowed as deduction under See. 24(A2xO)—2s0.00000, [Net Taxable income .90.000.0 “Tax Due ‘of 1,980,00000, 1 s.o000 + The goss soles and resis eld not exceed the VAT threshold of '5,60,000.00. + Taxpayer oped to be ted 8% income tx rate on gross sess + Taxgape's source of income is purely ffom selfemplyment, thus she ted to the amount allowed as edoction of P20, 00000. + Tuxpye sot able fr percentage tx under Section 116 ofthe Tax Coe [amonde nite the 8% some taxat also ia it ofthe erentage fx. aw Fis 20 8 RECEIVED win? Imusteaton 14; The goss sles of GEAL Corporation fo 2018 amounted to Po.000.0. wits ose of sake smouning 10 P4000, 00000, 1 mcured peratng expeses amovating to P,000,000.00, and on te ing of ts Fist ‘Quare nceme Tas Retr, sified ts lenin to aval of te OSD. Computatcn of OSD and Tax Doe: Gross Sales 6.000000.00, ese Cost of Sales -snn.000 00 Gross Icom 2,90n.000.00 xx: OSD (P2000 000.00 x 4026) “TesableIeame Ezmnan0.00 ‘Tex Due 30% ofP,200,00000 36000400 * OSD forcorportons based on gos income * Income x ate of corporation Is eure a 30% Determination of the Optional Standard Deduction for General Profesional Partnerships (GPPs) and Partners of GPP (GPP is ot subject to income imposed pursuant to Sec. 26 ofthe Tx Code, a5 amended However, the parties stall be lable t pu income tax on ther separate an invita ‘apocies fr ther eipectiv dtbuive share in th net income ofthe GPP. “The GPP isnot a tna ct for income tx prposs since ts only ating as 8 "psi Thro entity whet nome i lmao taxed to the partners comprising i. Seon 26 ff te Tax Code, es amended, likewise provides that “For pumposes of computing the “lattbutve share of he parners, te net ieome of he GPP shal be computed inte sane farmer es cerporat on A sul a GPP may cai ether the emlzed deductions allowed Under Seccon 34 ofthe Code or in les thereof, can opto aval of the OSD allowed t omorationinclam ng the deductions in an amoun: nc exceeding fry percent (40%) fs oss income In computing tasabe income defined under Section 31 ofthe Tax Code, as amended, the following ay be allowed a deductions a. emizet expenses which sre ordinary and neeesary, inured or pad forthe praatc of pofsson; OR b. Options Stardard Deduction (OSD). “The distributable netncome ofthe parneship maybe determined by claiming ther tend datvetons or OSD. The share in he net income ofthe parnership, actly or eanstrctely ‘sive, Sl be opted nciable income ach are. The pines coapising he GPP ‘Enno ger lai ther deduction from ther dsrhive share nth ex incme ofthe GPP dare ot slowed tava ofthe 8 ineome tx rte option since hr dstributive sar rom the GPP is already nec of cost and expense. ot . icanba men BIBSON — FEB 20 208 ¥ RECEIVED = te pner als derives te ince rom ade, busines cr pate of profession apt and stint fr te share m the not income ofthe GP, the deduction tht canbe claimed font the otteringome would either be tetemized deductions or OSD. IMusraton 16: Me, JME «pane of AMBS & Co, 2 general profesional parersip and ows 25% interest, The oss receipts of AMIS & Co. aovnted {S0,000 00000 fr txabe yer 2018 The rezoned cost of sevice and operating ‘expenses of AMBS & Co, were P2750,00.00 ad P1,$0,000.00, respectively. IFAMBS 2 Co, availed ofthe OSD, the deductions and net inome sal be computed 2s follows Gros Reels 10,908,000.00 Tess: Com of Seevies 0. Gross leone 7.230.000.00 ess; OSD (P7,250.00.00 x 4086) 2900.00.00, ‘Net incon or dsb oparners assn.00000 + There iso come tx Hikily fr AMBS & Co. since i is general profes patarsip under Seton 26 ofthe Tax Code, as amended, +The GP? elt OSD in th compution of is net income and i leton istrevceable forthe taxable yea for wach the return is made, +The GPP ible to business ts, “The income a ably of Mi, JMLH wil be computed as flows: Share Distributive Pat (%4,350,000.00 28%) -P_1.087,SD0.00 Tax Doe 01 890,00.00 P 130c00.00 (a ences (Pl 08750000 00,000.00) x 309% im Income Tex Doe FE ezs0m + individual partner isnot allowed to claim farther deduction from his disrutve share singe this beady net of cost and expenses. * Teagyer is ot allowed to aval of he 8% income tx rte option since heieistsbutve sare from GPP is already net of ast and expenses Iusraon 16: Ms. GEAL i perir of CCF Cay a general press pene and owns 2% intrest The ros xp of CCF Co. umount 19 Fin000.0000 for wal year 208 the record eon of sve nd operating Sear enee FE HtitaeaP SA e 2 oF TERNAL, Gg fue day mot, BISION a RECEIVED amy “The Netincome of CCF & Co, willbe computed as fellows: (ross Receipts * 10.000,000.00 Less: Gs of Sevies “2.00000 Gross lcome F7381,000.00 Less: Cperating Expenses 0,000.00 [Net neame for ditbuion o partners E-Szs00n00 Thee iso income ta Hb for CF & Co. being a general profesional palnersip under Seton 26a the Tax Code, as amended ‘The GPP sete item desution inthe computation of ts nt ineome and icles is revocble fo th taxable year fr which the return is mae. The GPPislable to business mx “Th income ta ihilty of Ms, GEA willbe computed a follows: Shar ie DistbuivePofie(P,750,000.00x 25%) -P.437.50000 Tax De ‘On esn00.00 130.0000 ‘On Excess (P1497, 50000 ~P50,000.0) x 30% 131 3s0.00, Income Tax Bue Pomaisn00 + {odivdal Pater isnt allowed any deduction on his dsibutve share since this is aleady net of cost and expenses “+ taxpayeisnot allowed to aa of the 9% income tex rate option sine her isibtve share fos GPP is aieady ret of ost and expenses SECTION 9, INDIVIDUALS NOT REQUIRED TO FILE INCOME TAX RETURN. — “The folowing individuals re not required toile income tx eta |A. An individual ering purely compensation income whose taxable income doesnot ‘xseed Twa Handed Fifty Thousand pesos (P25, 000.00; “The Certfeue of Withtoking ld by the respective employers, duly stamped ‘Received by the Burd, shall be tantamount othe subsite fling of income tx retens by said employes 8. Anniv whos income tas been corel wie his employer, provided ‘hat such individual bas ony one employer foe the taxable year =the Cerewt of ‘Witiolding fled by the respecdive employers duly stamped “Received” by the ‘Brean sal be tantamount to te sustted fling of neome eax res by sd employees ©. Anindiviaua whose sole insti Ure subjected fn! withholding os 1D. A minimum wage eamsr as defined in those regulations - The Cenitete of Cr ewan Mea 8g sore or nem nmen Meendy nee SON cee . FEB 2.0 208 gg

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