Final Taxes on Passive Income (2 items x 10 points)

Compute for the final income tax due given the following scenarios on passive income.

Mark, a resident of Isabela Province, had the following data during this current taxable year, assuming that the exchange rate is $1 - P54.

	Philippines	Abroad
Salaries	P 165,000	$ 2,000
Business Income	P 450,000	$ 6,000
Business Expenses	P 120,000	$ 1,500
Interest Income:
Personal Receivable	P 10,000
Foreign Currency Deposit Unit	$ 2,500
On Bank Deposits (20% long-term)	P 25,000	$ 3,000
Royalty Income (20% from books)	P 22,000	$ 1,000
Prize won in contest	P 10,000
Winnings from the Philippine Charity Sweepstakes	P 80,000
Sale of shares of stocks of a domestic corporation directly to a buyer (cost P10,000)	P 30,000

Additional information: Mark received the following dividend income during the year:

• P70,000 from a domestic corporation. 30% of its income is attributed to its operations abroad.
• P60,000 from a resident foreign corporation. The ratio of its gross income in the Philippines over worldwide income for the past three (3) years is only 40%.
• P80,000 from a non-resident foreign corporation. The ratio of its gross income in the Philippines over worldwide income for the past three (3) years is 10%.
• Mark also sold a condominium unit in Manila (residential) for P2,000,000 although its FMV is P3,000,000 but with a zonal value of P4,000,000.

Requirements:

1. Compute for Marks total final income taxes from his passive income.
2. Assuming that Mark is a non-resident citizen, compute for his total final income taxes from his passive income.