Question
Cong, single, had the following data for 2021 taxable year: Gross business income, Philippines, P1,000,000.00 Gross business income, USA, P500,000.00 Business expenses, Philippines, P700,000.00 Business
Cong, single, had the following data for 2021 taxable year:
Gross business income, Philippines, P1,000,000.00
Gross business income, USA, P500,000.00
Business expenses, Philippines, P700,000.00
Business expenses, USA, P430,000.00
Compensation income, Philippines, P600,000.00
Dividend income from a domestic corporation, P50,000.00
Dividend income from a foreign corporation, P40,000.00
Interest income from peso bank deposit Philippines, P20,000.00
Interest income from bank deposits abroad, P30,000.00
Interest income from FCDS deposits, P40,000.00
Royalty income from composition, P25,000.00
Raffle draw winnings, P10,000.00
PCSO winnings, P200,000.00
Creditable withholding taxes on business income, P125,000.00
Required:
1. Net Taxable Income
2. Total final taxes on passive income
3. Income Tax Payable
*Kindly provide calculations and explanation. Thanks!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started