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    Quiz On Tax On Compensation

    Uploaded by

    Master GT
    This document discusses taxation policies related to compensation, property dealings, and corporations. It provides examples of individuals' compensation and earnings that must be reported for income tax calculation purposes. It also gives scenarios involving property sales and loans between corporations and employees that are subject to fringe benefit taxes. The document seeks to illustrate how various common financial transactions and compensation arrangements are treated under Philippine tax laws.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Quiz On Tax On Compensation

    Uploaded by

    Master GT
    49 views3 pages
    This document discusses taxation policies related to compensation, property dealings, and corporations. It provides examples of individuals' compensation and earnings that must be reported for income tax calculation purposes. It also gives scenarios involving property sales and loans between corporations and employees that are subject to fringe benefit taxes. The document seeks to illustrate how various common financial transactions and compensation arrangements are treated under Philippine tax laws.

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    taxation 1 review

    Original Title

    Quiz on Tax on Compensation

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    This document discusses taxation policies related to compensation, property dealings, and corporations. It provides examples of individuals' compensation and earnings that must be reported for income tax calculation purposes. It also gives scenarios involving property sales and loans between corporations and employees that are subject to fringe benefit taxes. The document seeks to illustrate how various common financial transactions and compensation arrangements are treated under Philippine tax laws.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    49 views3 pages

    Quiz On Tax On Compensation

    Uploaded by

    Master GT
    This document discusses taxation policies related to compensation, property dealings, and corporations. It provides examples of individuals' compensation and earnings that must be reported for income tax calculation purposes. It also gives scenarios involving property sales and loans between corporations and employees that are subject to fringe benefit taxes. The document seeks to illustrate how various common financial transactions and compensation arrangements are treated under Philippine tax laws.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Tax on Compensation, Dealings in Properties and Corporation

    ANSWER KEY

    I.

    Polka Cilla is a rank and file employee in an Advertising Firm in Makati. In the year 2020, he
    had the following compensation record:
    Basic Pay P500,000.00
    Overtime Pay 200,000.00
    13th Month & Other Benefits:
    13th Month 20,000.00
    14th Month 20,000.00
    15th Month 20,000.00
    Christmas Bonus 10,000.00
    Creditable Withholding Tax 156,000.00
    De Minimis Benefits:
    Christmas and Anniversary Gifts 3,000.00

    Laundry Allowance 2,600.00

    Employee Achievement Award in kind 12,000.00

    Actual Medical Assistance 5,000.00

    Rice Subsidy 22,000.00

    Medical Cash Allowance To Employee Dependents 2,500.00

    Uniform and Clothing Allowance 5,000.00

    Productivity Incentive Allowance 18,000.00


    Persons Living with and Dependent on the Taxpayer :
    3 Illegitimate Children (Aged 22, 23 and 25)
    1 Minor Adopted Child
    Senior Citizen Father
    1 Foster Child

    1. Total Compensation Income


    2. Taxable De Minimis Benefits
    3. Tax (Refundable) for the year
    4. Total De Minimis Benefits exempt by law
    Tax on Compensation, Dealings in Properties and Corporation

    II.

    Rosal Sallero, single, living and working in Metro Manila, provides the following data in 2020:

    Salary as a Senior Associate in SGV for the year P120, 000


    Overtime pay 20, 000
    Hazard pay 30, 000
    Holiday pay 10, 000
    Night Shift Differential Pay 15, 000
    13th month pay 10, 000
    Rice Subsidy for 1 year 26, 000
    Christmas bonus 15, 000
    Laundry Allowance 7, 000
    Productive Incentive Pay 15, 000
    Employee Achievement Award (in cash) 25, 000
    Actual Medical Benefits 6, 000

    Professional income as a CPA outside his employment 350, 000


    Professional expenses 50, 000
    PCSO Lotto Winnings 5,000,000
    Distributable Share from General Partnership 600, 000
    Winnings from playing Tong-its 50, 000
    Rental Income from his Condominium unit 1,000,000

    Business of Ping-Guer licking Good Fastfood chain:


    Sales P2, 000,000
    Cost of Sales 1, 150,000
    Operating expenses 560, 000
    Interest income from BDO 10, 000
    Interest Expense 20, 000
    Other transactions:
    Sale of office equipment held for 5 years:
    Selling price 100, 000
    Cost 120, 000
    Accumulated depreciation 80, 000
    Sale of family van-bus held for 3 years:
    Selling price 300, 000
    Cost 210, 000
    Sale of family car held for 18 months:
    Selling price 480, 000
    Cost 500, 000

    Assuming the Minimum Monthly Wage Rate in Metro Manila is


    P11,000.00.
    How much is the Income Tax Payable of Rosal Sallero, if any?
    Tax on Compensation, Dealings in Properties and Corporation

    III.

    Xander Ford Corp. owns a condominium unit. During the year 2019, the said corporation
    furnished and granted the said property for the residential use of Xandarra Park, its Assistant
    Vice President. The zonal value of the property per BIR amounts to P10,000,000 while its fair
    market value as shown in its current Real Property Declaration amounts to P8,000,000. An
    independent appraiser has assessed it at 11,000,000.
    Compute the fringe benefit tax, if any.

    IV.

    In April 1, 2019, Pinaloan, Inc. lends money to Allan Ferrya, its Head Manager, amounting to
    P500,000 without interest so long as he will return the money when his means permit him to do
    so.
    How much is the fringe benefit tax, if any?

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