HOW TO COMPUTE THE INCOME TAX RETURN

Kristine Q. Crisostomo Fourth Year-St. Leo the Great 2010-2011

First of all, I would like to thank Mr. Romeo Roxas Marquicias for sharing a part of his knowledge to us. Words arent enough to thank his greatness that he showed to me, personally. He is a very generous teacher, a caring adviser (although Im not in his advisory class) and a loving parent. Those people that I would often visit in ICPS, Mr. Marquicias is one of them. We love you sir!

SENIORS AS ONE!

INCOME TAX

Income Tax is a tax on a person's income, emoluments, profits arising from property, practice of profession, conduct of trade or business or on the pertinent items of gross income specified in the Tax Code of 1997 (Tax Code), as amended, less the deductions and/or personal and additional exemptions, if any, authorized for such types of income, by the Tax Code, as amended, or other special laws.

Deadline
On or before the 15th day of April of each year covering taxable income for the preceding taxable year

Who are required to file ITRs?

Resident citizens receiving income from sources within or outside the Philippines Non-resident citizens receiving income from sources within the Philippines Aliens, whether resident or not, receiving income from sources within the Philippines Corporations, no matter how created or organized, including general professional partnerships Domestic corporations receiving income from sources within and outside the Philippines Foreign corporations receiving income from sources within the Philippines Estates and trusts engaged in trade or business

Format of Computations
For

Single

Gross Compensation Income __________________GCI Personal Exemption __________________________PE Taxable Income _____________________________TI Tax Due ___________________________________TD Tax Withheld _______________________________TW Tax Payable/Tax Refundable ________________TP/TR Penalty ____________________________________P Total Amount Payable/Refundable _________TAP/TAR Final Answer

For Married
Taxpayer Spouse

Gross Compensation Income __GCI Personal Exemption _________PE Additional Exemption _________AE

Gross Compensation Income __GCI Personal Exemption _________PE

Special Exemption
Taxable Income _____________TI

Additional Exemption Special Exemption

+Taxable Income _____________TI

Tax Due
Tax Withheld ________________TW

Tax Due
+Tax Withheld ______________TW

Tax Payable/Refundable Penalty Total Amount Payable/Refundable

Final

Tax Payable/Refundable Penalty Total Amount Payable/Refundable

Final

=Taxable Income = Tax Due = Tax Withheld TP/TR P TAP/TAR Final

The GCI

The GCI or gross compensation income is the total salary of a person from a specific duration of time. It is basically defined as everything an individual earned for providing labor or a service

Counting the number of the working months

There are two situations in counting the working months of a certain year.

March-Oct. 2010 Jan.-September Feb.-December

March 15-Oct.15 Jan15-Sept.15 Feb. 15-Dec. 15

1.

There is no specific day of the starting period of the working months. To count the number of months, you should include the starting month and the finishing month.
March-October: March,April,May,June,July,August,September,October = 8 working months January-September: January,February,March,April,May,June,July,August, September = 9 working months

Ex.

2. There is a given specific day on the start & end of the finishing month. To count the number of working months, you should start counting on the preceding month and end on the finishing month. Ex. May 15-November 15: June 15, July 15, August 15, September 15, October 15, November 15 = 6 working months February 15-October 15: March 15, April 15, May 15, June 15, July 15, August 15, September 15, October 15 = 8 working months

Determining the taxable and the non-taxable

Taxable Income Examples of Taxable Income are: Food Allowance Housing Allowance Transportation Allowance Substitution Allowance Stipend Pay Overtime Pay Honorarium Pay Bonus Pay Commission

Non-Taxable Income

Examples of Non-taxable income are: x Hazard Pay x 13th Month Pay x SSS Contribution x GSIS Contribution x Health Insurance x Pag-IBIG Contribution x Lotto/Sweepstakes

Personal Exemption - For single individual or married

The Exemptions

individual judicially decreed as legally separated with no qualified dependentsP 50,000.00 For head of familyP 50,000. For each married individual *P 50,000.00 Note: In case of married individuals where only one of the spouses is deriving gross income, only such spouse will be allowed to claim the personal exemption. Additional Exemptions - For each qualified dependent, an P25,000 additional exemption can be claimed but only up to 4 qualified dependents. Special Exemptions - The maximum amount of P 2,400 premium payments on health and/or hospitalization insurance can be claimed if The spouses gross income yearly should not be more than P 250,000 For married individuals, the spouse claiming the additional exemptions for the qualified dependents shall be entitled to this deduction.

3 Types of Penalty
Late Filer 20% Failure to File 25% Fraud 50%

The Tax Table

If Taxable Income is: Not over P10,000 Rate 5%

Over P 10,000 But not over 30,000

Over P 30,000 But not over 70,000 Over P 70,000 But not over 140,000 Over P 140,000 But not over 250,000 Over P 250,000 But not over 500,000 Over P 500,000

P500 + 10% of the Excess over P10,000

P2,500 + 15% of the Excess over P30,000 P8,500 + 20% of the Excess over P70,000 P22,500 + 25% of the Excess over P140,000 P50,000 + 30% of the Excess over P250,000 P125,000 + 32% of the Excess over P500,000

The Withholding Tax Table

Computation for the ITR of SINGLE

Get the GCI Ms. Ramos March 7Nov.7,2010 =8 working months

x x

x x

Basic Salary 25,688.10/m Lotto Winning 13th month Transportation Housing Food Bonus Commission SSS Contribution Honorarium Insurance Overtime

10,644,40 25,688.10 1,500.00/m 2,500.00/m 500.00/m 10,500.00 15,600.10 1,600.50/m 3,400.10/m 16,000.50 23,330.30

Eliminate all the non-taxable factors The taxable factors which are given monthly, multiply it to the number of working months to get the total value.

Basic Salary 25,688.10/m x 8 months = Transportation1,500.00/m x 8 months = Housing 2,500.00/m x 8 months = Food 500.00/m x 8 months = Bonus 10,500.00 Commission 15,600.10 Honorarium 3,400.10/m x 8 months = Overtime 22,330.30

205,504.80 12,000.00 20,000.00 4,000.00 10,500.00 15,600.10 27,200.80 23,330.30 _________ GCI = 318,136.00

Once the monthly taxable factors are multiplied to the number of working months, add all of the taxable factors to get the GCI (Gross Compensation Income)

Ms. Ramos

Gross Compensation Income ____________ 318,136.00 Personal Exemption ___________________ 50,000.00 Taxable Income _____________________________TI Tax Due ___________________________________TD Tax Withheld _______________________________TW Tax Payable/Tax Refundable ________________TP/TR Penalty ____________________________________P Total Amount Payable/Refundable _________TAP/TAR Final Answer

Because Mrs. Ramos is single with no dependents, she is honored P50,000 for personal exemption.

Next step: Get the Taxable income from the GCI

 To

get the Taxable Income, Subtract the Personal Exemption from the GCI
GCI = 318,136.00 - 50,000.00 268,136.00 = Taxable Income

Ms. Ramos

Gross Compensation Income ____________ 318,136.00 Personal Exemption ___________________ 50,000.00 Taxable Income ______________________ 268,136.00 Tax Due __________________________TD Tax Withheld _______________________________TW Tax Payable/Tax Refundable ________________TP/TR Penalty ____________________________________P Total Amount Payable/Refundable _________TAP/TAR Final Answer

Next step: Get the Tax Due from the Taxable Income

To get the tax due, refer to the tax table and identify which bracket the Taxable Income is suitable to. TI = 268,136.00
Rate 5% P500 + 10% of the Excess over P10,000 P2,500 + 15% of the Excess over P30,000 P8,500 + 20% of the Excess over P70,000 P22,500 + 25% of the Excess over P140,000 P50,000 + 30% of the Excess over P250,000

If Taxable Income is: Not over P10,000 Over P 10,000 But not over 30,000 Over P 30,000 But not over 70,000 Over P 70,000 But not over 140,000 Over P 140,000 But not over 250,000 Over P 250,000 But not over 500,000

Because 268,136.00 is over 250,000 but not over 500,000, we should use bracket 6.

268,136.00 250,000.00 18,136.00 X .30______ 5,440.80 +50,000

Over P 500,000

P125,000 + 32% of the Excess over P500,000

55,440.80= Tax Due

Ms. Ramos

Gross Compensation Income ____________ 318,136.00 Personal Exemption ___________________ 50,000.00 Taxable Income ______________________ 268,136.00 Tax Due _____________________________ 55,440.80 Tax Withheld _______________________________TW Tax Payable/Tax Refundable ________________TP/TR Penalty ____________________________________P Total Amount Payable/Refundable _________TAP/TAR Final Answer

Next step: Get the Tax Withheld from the GCI

To get the tax withheld, refer to the withholding tax table.

Tax Withheld

First, divide the GCI to the number of working months to get the monthly income.
GCI = 318,136.00 / 8 months 39,767 = monthly income Because Ms. Ramos is single with no dependent, we should refer to No. 2 S/ME. Next, find the column that is the most suited for the monthly income

39,767 25,000 14,767

14,767 x .30 4,430.10 4,431.10 + 4166.67 8,596.77 8,596.77 x 8 months

The most suited column for 39,767 is column 7 because the monthly income is over 25,000 but not over 45,833

68,774.16 = Withholding Tax

Ms. Ramos

Gross Compensation Income ____________ 318,136.00 Personal Exemption ___________________ 50,000.00 Taxable Income ______________________ 268,136.00 Tax Due _____________________________ 55,440.80 Tax Withheld _________________________ 68,774.16 Tax Payable/Tax Refundable ________________TP/TR Penalty ____________________________________P Total Amount Payable/Refundable _________TAP/TAR Final Answer

Next step: Determine if it is tax payable/Tax Refundable

Determine whether it is tax payable or tax refundable

If the Tax Due is greater than the withholding tax, it is Tax Payable. Add the Tax Due and the Withholding tax to get the Tax Payable. TD>WT = TP WT<TD = TP If the Tax Due is less than the withholding tax, it is Tax Refundable. Deduct the Tax Due from the Withholding Tax to get the Tax Refundable. TD<WT = TR WT>TD = TR

Ms. Ramos
Gross Compensation Income ____________ 318,136.00 Personal Exemption ___________________ 50,000.00 Taxable Income ______________________ 268,136.00 Tax Due _____________________________ 55,440.80 Tax Withheld _________________________ 68,774.16 Tax Payable/Tax Refundable ________________TP/TR Penalty ____________________________________P Total Amount Payable/Refundable _________TAP/TAR Final Answer

In this case, the Tax Withheld is greater than the Tax Due. Therefore it is Tax Refundable.

Tax Refundable

Subtract the Tax Due from the Tax Withheld to get the value of the Tax Refundable.

Tax Withheld = Tax Due =

68,774.16 - 55,440.80

Refundable

13,333.36 = Tax

Ms. Ramos

Gross Compensation Income ____________ 318,136.00 Personal Exemption ___________________ 50,000.00 Taxable Income ______________________ 268,136.00 Tax Due _____________________________ 55,440.80 Tax Withheld _________________________ 68,774.16 Tax Refundable ______________________ 13,333.36 Penalty ____________________________________P Total Amount Refundable ________________TAP Final Answer

Next step: Determine the Penalty

Penalty
In Ms. Ramos case, she failed to file her ITR. That means, she is charged of a 25% penalty. Multiply the Tax Refundable to the Percentage of the Penalty 13,333.36 X .25 3333.34 = Penalty

Ms. Ramos

Gross Compensation Income ____________ 318,136.00 Personal Exemption ___________________ 50,000.00 Taxable Income ______________________ 268,136.00 Tax Due _____________________________ 55,440.80 Tax Withheld _________________________ 68,774.16 Tax Refundable _______________________ 13,333.36 Penalty ______________________________ 3333.34 Total Amount Refundable ________________TAP Final Answer

Next step: Determine Total Amount Refundable

Total Amount Payable/Refundable

If it is tax Payable, you should add the tax payable and the Penalty to get the total value. If it is tax Refundable, you should subtract the Penalty from tax refundable the to get the total value.

In this case, it is tax refundable. Therefore, we should subtract the Penalty from the tax refundable.
Tax Refundable = 13,333.36 Penalty = - 3333.34 10,000.02 = Total Amount Refundable

Ms. Ramos

Gross Compensation Income ____________ 318,136.00 Personal Exemption ___________________ 50,000.00 Taxable Income ______________________ 268,136.00 Tax Due _____________________________ 55,440.80 Tax Withheld _________________________ 68,774.16 Tax Refundable _______________________ 13,333.36 Penalty ______________________________ 3333.34 Total Amount Refundable ________________ 10,000.02 Final Answer

Last step: Get the final answer

The Final Answer

Round off the decimal point of the Total Amount Payable/Refundable. 10,000.02 = 10,000.00 Final Answer

Ms. Ramos

Gross Compensation Income ____________ 318,136.00 Personal Exemption ___________________ 50,000.00 Taxable Income ______________________ 268,136.00 Tax Due _____________________________ 55,440.80 Tax Withheld _________________________ 68,774.16 Tax Refundable _______________________ 13,333.36 Penalty ______________________________ 3333.34 Total Amount Refundable________________ 10,000.02 Final Answer _________________________ 10,000.00

Computation for the ITR of Married

For Married
Taxpayer Spouse

Gross Compensation Income __GCI Personal Exemption _________PE Additional Exemption _________AE

Gross Compensation Income __GCI Personal Exemption _________PE

Special Exemption
Taxable Income _____________TI

Additional Exemption Special Exemption

+Taxable Income _____________TI

Tax Due
Tax Withheld ________________TW

Tax Due
+Tax Withheld ______________TW

Tax Payable/Refundable Penalty Total Amount Payable/Refundable

Final

Tax Payable/Refundable Penalty Total Amount Payable/Refundable

Final

=Taxable Income = Tax Due = Tax Withheld TP/TR P TAP/TAR Final

GET THE GCI

Mr. Cruz Jan-Nov. 2010
x x

Mrs. Cruz Jan11-Sept.11, 2010

x x

x x

Basic Salary 27,877.00/m Lotto Winning 4,599.47 13th month 27,877.00 Transportation 1,500.00/m Housing 2,500.00/m Food 500.00/m Bonus 15,000.00 Commission 10,000.0 SSS Contribution 1,600.50/m Honorarium 3,500.00/m Insurance 14,000.00 Overtime 21,000.00

x x

Basic Salary 20,486.00/m Lotto Winning 10,644,40 13th month 19,744.80 Transportation 1,500.00/m Housing 2,500.00/m Food 500.00/m Bonus 8,000.00 Commission 7000.00 SSS Contribution 1,600.50/m Honorarium 2,000.00/m Insurance 16,000.50 Overtime 16,000.00

Eliminate all the non-taxable factors The taxable factors which are given monthly, multiply it to the number of working months to get the total value.

Mr. Cruz Jan-Nov. 2010 = 11 months

Basic Salary 27,877.00 x 11 months Transportation 1,500.00/m x 11 months Housing 2,500.00/m x 11 months Food 500.00/m x 11 months Bonus 15,000.00 Commission 10,000.00 Honorarium 3,500.00/m x 11 months Overtime 21,000.00

= = = =

306,647.00 16,500.00 27,500.00 5,500.00 15,000.00 10,000.00 = 38,500.00 21,000.00 440,647.00 = GCI

Once the monthly taxable factors are multiplied to the number of working months, add all of the taxable factors to get the GCI (Gross Compensation Income)

Mrs. Cruz Jan11-Sept.11, 2010 = 8 months

Basic Salary 20,486.00 x 8 months Transportation 1,500.00 x 8 months Housing 2,500.00 x 8 months Food 500.00 x 8 months Bonus 8,000.00 Commission 7000.00 Honorarium 2000.00 x 8 months Overtime 16,000.00

= = = =

163,888.00 12,000.00 20,000.00 4,000.00 8,000.00 7000.00 = 19,000.00 16,000.00 249,888.00 = GCI

Once the monthly taxable factors are multiplied to the number of working months, add all of the taxable factors to get the GCI (Gross Compensation Income)

The GCI
Mr.

Cruz

Mrs.

Cruz

GCI 440,647.00 PE AE

GCI 249,888.00 PE

AE(Not Applicable)
SP +TI =TI(total) =TD =TW(total) TP P TAP Final

SP(Not Applicable)
TI

TD
TW

TD
+TW

TP P TAP
Final

TP P TAP
Final

Next step: Determine the Personal Exemption

Personal Exemption - For single individual or married individual, 50,000.00 worth of personal exemption is allotted.
Mr.

Cruz

Mrs.

Cruz

GCI 440,647.00 PE 50,000.00 AE

GCI 249,888.00 PE 50,000.00

AE(Not Applicable)
SP +TI

SP(Not Applicable)
TI

TD
TW

TD
TW

=TI(total) =TD =TW(total)

TP P TAP
Final

TP P TAP
Final

TP P TAP
Final

Next step: Determine the qualified dependents for the Additional Exemption

Additional Exemption - For each qualified dependent, an P25,000 additional exemption can be claimed but only up to 4 qualified dependents

One Cruz January 27, 1991 = 19 yrs old Two Cruz February 27, 1997 = 13 yrs old Three Cruz March 27, 1999 = 11 yrs old Four Cruz April 27, 2001 = 9 yrs old Each qualified dependent = 25,000 x4 100,000.00 = Additional Exemption

Note: The Additional Exemption is only applicable for the taxpayer.

Mr.

Cruz

Mrs.

Cruz

GCI 440,647.00 PE 50,000.00 AE 100,000.00

GCI 249,888.00 PE 50,000.00

AE(Not Applicable)
SP +TI

SP(Not Applicable)
TI

TD
TW

TD
TW

=TI(total) =TD =TW(total)

TP P TAP
Final

TP P TAP
Final

TP P TAP
Final

Next step: Determine if the spouse is qualified for a special exemption

Special Exemption - The maximum amount of P 2,400 premium payments on health and/or hospitalization insurance can be claimed if the spouses gross income yearly should not be more than P 250,000

Mrs. Cruz GCI is not more than P 250,000.00. Therefore she is entitled for a P2400.00 Special Exemption.

Note: The Special Exemption is only applicable for the spouse

Mr.

Cruz

Mrs.

Cruz

GCI 440,647.00 PE 50,000.00 AE 100,000.00

GCI 249,888.00 PE 50,000.00

AE(Not Applicable)
SP 2,400.00 +TI

SP(Not Applicable)
TI

=TI(total) =TD =TW(total)

TD
TW

TD
+TW

TP P TAP
Final

TP P TAP
Final

TP P TAP
Final

Next step: Compute for the Taxable Income Separately.

To get the taxable income, get the total exemption and subtract it from the GCI.

Mr. Cruz 50,000.00 + 100,000.00 150,000.00

PE AE

GCI Exemptions

440,647.00 150,000.00 290,647.00 = Taxable Income of Mr. Cruz

To get the taxable income, get the total exemption and subtract it from the GCI.

Mrs. Cruz 50,000.00 + 2,400.00 52,400.00

PE SP

GCI Exemptions

249,888.00 52,400.00 197,488.00 = Taxable Income of Mrs. Cruz

Mr.

Cruz

Mrs.

Cruz

GCI 440,647.00 PE 50,000.00 AE 100,000.00

GCI 249,888.00 PE 50,000.00

AE(Not Applicable)
SP 2,400.00 +TI 197,488.00

SP(Not Applicable)
TI 290,647.00

=TI(total) =TD =TW(total)

TD
TW

TD
+TW

TP P TAP
Final

TP P TAP
Final

TP P TAP
Final

Next step: Compute for the Total Amount of Taxable Income

To get the total taxable income, we should add the TI of the taxpayer and the spouse. Mr. Cruz TI = 290,647.00 Mrs. Cruz TI =+ 197,488.00 488,135.00 = Total Taxable Income

Mr.

Cruz

Mrs.

Cruz

GCI 440,647.00 PE 50,000.00 AE 100,000.00

GCI 249,888.00 PE 50,000.00

AE(Not Applicable)
SP 2,400.00 +TI 197,488.00

SP(Not Applicable)
TI 290,647.00

= 488,135.00 =TD =TW(total)

TD
TW

TD
+TW

TP P TAP
Final

TP P TAP
Final

TP P TAP
Final

Next step: Compute for the Tax Due from the Total Taxable Income

To get the tax due, refer to the tax table and identify which bracket the Total Taxable Income is suitable to. TI = 488,135.00
Rate 5% P500 + 10% of the Excess over P10,000 P2,500 + 15% of the Excess over P30,000 P8,500 + 20% of the Excess over P70,000 P22,500 + 25% of the Excess over P140,000 P50,000 + 30% of the Excess over P250,000 P125,000 + 32% of the Excess over P500,000

If Taxable Income is: Not over P10,000 Over P 10,000 But not over 30,000 Over P 30,000 But not over 70,000 Over P 70,000 But not over 140,000 Over P 140,000 But not over 250,000 Over P 250,000 But not over 500,000 Over P 500,000

Because 488,135.00 is over 250,000 but not over 500,000, we should use bracket 6.

488,135.00

250,000.00 236,135.00 X .30______ 71,440.50 +50,000 121,440.50= Tax Due

Mr.

Cruz

Mrs.

Cruz

GCI 440,647.00 PE 50,000.00 AE 100,000.00

GCI 249,888.00 PE 50,000.00

AE(Not Applicable)
SP 2,400.00 +TI 197,488.00

SP(Not Applicable)
TI 290,647.00

= 488,135.00 = 121,440.50 = TW(total)

TD
TW

TD
+TW

TP P TAP
Final

TP P TAP
Final

TP P TAP
Final

Next step: Compute for the Tax Withheld Separately.

To get the tax withheld, refer to the withholding tax table.

Tax Withheld

First, divide the GCI to the number of working months to get the monthly income.
Mr. Cruz GCI = 440,647.00 / 11 months 40,058.81 = monthly income Because Mr. Cruz is married with four (4) qualified dependents, we should refer to No. 4 ME4/S4. Next, find the column that is the most suited for the monthly income The most suited column for 40,058.81 is column 7 because the monthly income is over 24,167 but not over 54,167

40,058.81 33,333 6,725.81

6,725.81 x .30 2,017.74 2,017.74 + 4166.67 6,184.41 6,184.41 x 11 months 68,028.51 = Mr. Cruz Withholding Tax

First, divide the GCI to the number of working months to get the monthly income.
Mrs. Cruz GCI = 249,888.00 / 8 months 31,236.00 = monthly income Because Mrs. Cruz is married with four (4) qualified dependents, we should refer to No. 4 ME4/S4. Next, find the column that is the most suited for the monthly income The most suited column for 31,236.00 is column 6 because the monthly income is over 18,333 but not over 33,333

31236 24167 7069.00

7069 x .25 1767.25 1767.25 + 1875.00 3,642.25 3,642.25 x 8 months 29,138.00 = Mrs. Cruz Withholding Tax

Mr.

Cruz

Mrs.

Cruz

GCI 440,647.00 PE 50,000.00 AE 100,000.00

GCI 249,888.00 PE 50,000.00

AE(Not Applicable)
SP 2,400.00 +TI 197,488.00

SP(Not Applicable)
TI 290,647.00

= 488,135.00 = 121,440.50 = 97,166.51

TD
TW 68,028.51

TD
+TW 29,138.00

TP P TAP
Final

TP P TAP
Final

TP P TAP
Final

Next step: Determine if it is Tax Payable or Tax Refundable

Determine whether it is tax payable or tax refundable

If the Tax Due is greater than the withholding tax, it is Tax Payable. Add the Tax Due and the Withholding tax to get the Tax Payable. TD>WT = TP WT<TD = TP If the Tax Due is less than the withholding tax, it is Tax Refundable. Deduct the Tax Due from the Withholding Tax to get the Tax Refundable. TD<WT = TR WT>TD = TR

Mr.

Cruz

Mrs.

Cruz

GCI 440,647.00 PE 50,000.00 AE 100,000.00

GCI 249,888.00 PE 50,000.00

AE(Not Applicable)
SP 2,400.00 +TI 197,488.00

SP(Not Applicable)
TI 290,647.00

= 488,135.00 = 121,440.50 = 97,166.51

TD
TW 68,028.51

TD
+TW 29,138.00

TP P TAP
Final

TP P TAP
Final

TP P TAP
Final

In this case, The Tax Due is Greater than the Tax Withheld. Therefore it is Tax Payable.

Tax Payable

Subtract the Tax Withheld from the Tax Due to get the value of the Tax Payable.
= 121,440.50 =- 97,166.51
24,273.99 = Tax Payable

Tax Due Withholding Tax

Mr.

Cruz

Mrs.

Cruz

GCI 440,647.00 PE 50,000.00 AE 100,000.00

GCI 249,888.00 PE 50,000.00

AE(Not Applicable)
SP 2,400.00 +TI 197,488.00

SP(Not Applicable)
TI 290,647.00

= = = =

488,135.00
121,440.50

97,166.51 24,273.99

TD
TW 68,028.51

TD
+TW 29,138.00

P TAP
Final

TP P TAP
Final

TP P TAP
Final

Next step: Compute for the Penalty

In Mr. and Mrs. Cruz case, they have filed their ITR late. So they were charged of 20% Penalty.

Multiply the Tax Payable to the percentage of the penalty. Tax Payable = 24,273.99 x .20 4,854.79 = Penalty

Mr.

Cruz

Mrs.

Cruz

GCI 440,647.00 PE 50,000.00 AE 100,000.00

GCI 249,888.00 PE 50,000.00

AE(Not Applicable)
SP 2,400.00 +TI 197,488.00

SP(Not Applicable)
TI 290,647.00

= = = =

488,135.00
121,440.50

TD
TW 68,028.51

TD
+TW 29,138.00

97,166.51 24,273.99 = 4,854.79

TAP
Final

TP P TAP
Final

TP P TAP
Final

Next step: Compute for the Total Amount Payable.

Total Amount Payable/Refundable

If it is tax Payable, you should add the tax payable and the Penalty to get the total value. If it is tax Refundable, you should subtract the Penalty from tax refundable the to get the total value.

In this case, it is Tax Payable. We should add the Tax Payable and the Penalty to get the Total Amount Payable. Tax Payable Penalty

= 24,273.99 =- 4,854.79 19,419.20 = Total Amount Payable

Mr.

Cruz

Mrs.

Cruz

GCI 440,647.00 PE 50,000.00 AE 100,000.00

GCI 249,888.00 PE 50,000.00

AE(Not Applicable)
SP 2,400.00 +TI 197,488.00

SP(Not Applicable)
TI 290,647.00

= = = =

TD
TW 68,028.51

TD
+TW 29,138.00

488,135.00 121,440.50 97,166.51 24,273.99 = 4,854.79 = 19,419.20 Final

TP P TAP
Final

TP P TAP
Final

Final step: Get the final answer

The Final Answer

Round off the decimal point of the Total Amount Payable/Refundable.

19,419.20 = 19,419.00 Final Answer

Mr.

Cruz

Mrs.

Cruz

GCI 440,647.00 PE 50,000.00 AE 100,000.00

GCI 249,888.00 PE 50,000.00

AE(Not Applicable)
SP 2,400.00 +TI 197,488.00

SP(Not Applicable)
TI 290,647.00

= = = =

TD
TW 68,028.51

TD
+TW 29,138.00

488,135.00 121,440.50 97,166.51 24,273.99 = 4,854.79 = 19,419.20 19,419.00

TP P TAP
Final

TP P TAP
Final