False – final withholding taxes are not creditable.. False – the tax is final tax, hence not required to file an income tax return.. False – Business income is an income earned but not a
Trang 1CHAPTER 14
WITHHOLDING TAXES
Problem 14 – 1 TRUE OR FALSE
1 True
2 True
3 True
4 True
5 False – final withholding taxes are not creditable
6 False – the tax is final tax, hence not required to file an income tax return
7 False – Business income is an income earned but not all subject to expanded
withholding tax
8 True
9 True
10 True
11 True
12 False – all payments made by the government are net of withholding taxes
13 True
14 True
15 True
Share from the professional partnership (P500,000 x 50%) P250,000 Less: Creditable withholding tax (P250,000 x 10%) 25,000 Amount received, net of withholding tax P225,000
Dividend income (P10 x 10,000) P 100,000 Less: Withholding tax on dividends income of NRFC (30%) 30,000 Dividend income, net of withholding tax P 70,000
Less: Withholding tax (P500,000 x 4.5%) 22,500 Lease income, net of withholding tax P 477,500
Tax informer’s fee P1,000,000 Less: Withholding tax (P1,000,000 x 10%) 100,000 Tax informer’s fee, net of withholding tax P 900,000
Trang 2a Resident Citizen or Resident Alien
1 Interest on bank deposits
a Peso deposits
b Dollar account (FCDS)
2 Prize
3 Royalties on books
4 Capital gains on sale of real property
5 Property dividends
6 Compensation from OBU
(P 50,000 x 20%) ($ 10,000 x 7.5%) (P100,000 x 20%) (P300,000 x 10%) (P1,000,000 x 6%) (P120,000 x 10%) (P400,000 x 15%)
P10,000
$ 750 P20,000 P30,000 P60,000 P12,000 P60,000
b Nonresident Alien engaged in business
1 Interest on bank deposits
a Peso deposits
b Dollar account (FCDS)
2 Prize
3 Royalties on books
4 Capital gains on sale of real property
5 Property dividends
6 Compensation from OBU
(P 50,000 x 20%) (P100,000 x 20%) (P300,000 x 10%) (P1,000,000 x 6%) (P120,000 x 20%) (P400,000 x 15%)
P10,000 Exempt P20,000 P30,000 P60,000 P24,000 P60,000
c Nonresident Alien not engaged in business
1 Interest on bank deposits
a Peso deposits
b Dollar account
2 Prize
3 Royalties on books
4 Capital gains on sale of real property
5 Property dividends
6 Compensation from OBU
(P 50,000 x 25%) (P100,000 x 25%) (P300,000 x 25%) (P1,000,000 x 6%) (P120,000 x 25%) (P400,000 x 15%)
P12,500 Exempt P25,000 P75,000 P60,000 P30,000 P60,000
d Domestic Corporation
1 Interest on bank deposits
a Peso deposits
b Dollar account
2 Prize
3 Royalties on books
4 Capital gains on sale of property
5 Property dividends
6 Compensation from OBU
(P 50,000 x 20%) ($ 10,000 x 7.5%) (P300,000 x 20%) (P200,000 x 6%)
P10,000
$ 750 N/A P60,000 P12,000 Exempt N/A
e Resident Foreign Corporation
1 Interest on bank deposits
a Peso deposits
b Dollar account
2 Prize
3 Royalties on books
4 Capital gains on sale of property
5 Property dividends
6 Compensation from OBU
(P 50,000 x 20%) ($ 10,000 x 7.5%) (P300,000 x 20%)
P10,000
$ 750 N/A P60,000 N/A Exempt N/A
f Nonresident Foreign Corporation
1 Interest on bank deposits
a Peso deposits
b Dollar account
2 Prize
(P 50,000 x 30%) (P100,000 x 30%)
P15,000 Exempt P30,000
Trang 33 Royalties on books
4 Capital gains on sale of property
5 Property dividends
6 Compensation from OBU
(P300,000 x 30%) (P120,000 x 30%)
P90,000 N/A P36,000 N/A