question archive A married taxpayer with two qualified dependent children provided the following data for the taxable year: Gross compensation income 750,000 Fixed allowances regularly received 100,000 CASE A: Assume the taxable year is 2017, determine the income tax due if the taxpayer is: a) The taxpayer is an alien employed by ROHQ holding a managerial and technical position
A married taxpayer with two qualified dependent children provided the following data for the taxable year: Gross compensation income 750,000 Fixed allowances regularly received 100,000 CASE A: Assume the taxable year is 2017, determine the income tax due if the taxpayer is: a) The taxpayer is an alien employed by ROHQ holding a managerial and technical position
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A married taxpayer with two qualified dependent children provided the following data for the
taxable year:
Gross compensation income 750,000
Fixed allowances regularly received 100,000
CASE A: Assume the taxable year is 2017, determine the income tax due if the taxpayer is:
a) The taxpayer is an alien employed by ROHQ holding a managerial and technical position.
b) The taxpayer is a Filipino citizen employed by ROHQ holding managerial and technical
position.
c) The taxpayer is a Filipino citizen employed by an Offshore Bank Unit holding managerial and
technical position.
d) The taxpayer is a Filipino citizen employed by a Petroleum Contractor holding managerial and
technical position
CASE B: Assume the taxable year is 2018, determine the income tax due if the taxpayer is:
a) The taxpayer is an alien employed by ROHQ holding a managerial and technical position.
b) The taxpayer is a Filipino citizen employed by ROHQ holding managerial and technical position
c) The taxpayer is a Filipino citizen employed by an Offshore Bank Unit holding managerial and
technical position
d) The taxpayer is a Filipino citizen employed by a Petroleum Contractor holding managerial and
technical position
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2017:
a. P127,500
b. P221,000
c. P127,500
d. P127,500
2018:
a. P145,000
b. P145,000
c. P145,000
d. P145,000
Step-by-step explanation
2017 (Pre-TRAIN Law)
a. Taxpayer is a Special Alien Employee - 850,000 x 15% = 127,500
b. Taxpayer is a Special Filipino Employee employed in a ROHQ, the old percentage is not applicable since gross income is not higher than the P 975,000 threshold. - TI = 850,000 - 50,000 (personal exemptions) = P 800,000; 125,000 + (300,000 (excess of 500,000) x 32%) = P 221,000
c. Taxpayer is a Special Filipino Emplohee employed in an OBU = 850,000 x 15% = P 127,500
d. Taxpayer is a Special Filipino Employee employed in an Petroleum Contractor = 850,000 x 15% = P 127,500
2018 (TRAIN Law)
Tax rates have been uniformed for compensation income taxpayers since the implementation of TRAIN Law.
Taxable Income = 850,000
Income Tax Due: 130,000 + (50,000 (excess of 800,000) x 30%) = P 145,000 (a,b,c,d)
