Individual Income Tax
Estate- can be settled either judicially or extrajudicially
If under judicial settlemen0 the income earned from the properties forming part of
the estate shall be reported by the estate as a taxpayer.
If the estate is under extra-judicial settlement- the income earned grom the
properties forming part of the estate sha be reported by the heirs.
The estate will become a separate tax payer, the Administrator will get a different
tax number for the estate.
Trust
A separate taxpayer if the income accumulated is intruest for the benefit of the
unvorn or unascertained person or persons with contingent interest, and if the
income accumulated or held is for fistribution under the terms of the will or trust ,
which can no longer be modified. Irrevocable trust- within and without
If irrevocable trust- grantor shall declare the income derived from the trust.
-Need to get a tax identification number.
CORPORATE INCOME TAX
RA. 12066?
1. Normal Coprorate Income Tax
- 20% to 25% based in the taxable income
- Applicable to domestic corporations and resident foreign corporations.
Gross sales/ Gross Receipts
CREATE MORE LAW or RA 12066
Domestic Corporation are subject to 25% Normal Corporate Income Tax
RBES Registered Business Enterprise
- That are registered with an investment agency- subject to 20% tax
Section 294- incentives enjoyed by RBEs,
-Income Tax Hollidays
-Special Corporate Income Tax Rate
-Enhanced Deductions Regime
For Foreign Corporations
NFRC-25% Based on Gross income of FCs
II. Final Withholding Tax FWT on Passive income
-applicable both to DMC and RFC
20% is hereby imposednupon the amount of interest on currency bank deposit and
uoeld or any other monetary benefit from deposit substitutes and trust funds and
similar arrangements receiebed by domestic coproprations and royalites a dericed
from sourceswithin the Philippines
Povided, however, That interest income by a domestic corporation from a depository
bank under the expanded foreign currency deposit system shall be subject to a final
income tax at the rate of 15% of such interest and income.
III. Capital Gains Tax
- 6% on sale of real property classified as capital asset which is located in
the Philippines
- Applicable to DC only
Capital Gains from the Sale of shares of Stock Not Traded in the Stock Exchange
A final tax at the rate of 15% shall be imposed on net capital gains realized during
the taxable year from the sale, enhance or other disposition of shares in a DC
except shares sold or disposed of through the stock exchange.
IV. Tax Income derived under the expanded foreign currency deposit system.
-Income derived by a depository bank under the expanded foreign currency deposit
system from foreign currency transactions with nonresidents, offshore banking units
in the Philippines, local commercial banks including branches of foreign banks that
may be authorized by the Bangko Sentral ng Pilipinas, to transact business with
foreign currency deposit system from the time the
V. Intercorporate Dividends
- Dividends received by a DC shall not be subject to tax under this Title,
VI. 2% Minimum Corporate Income Tax
-based on gross income
-imposed on DC and Resident Foreign Corporation
- Imposed beginning of the 4 th taxable year immediately following the year which
the corporation commenced its business operations, when the MCIT is greater than
the NCIT.
