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GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022) Over But not over The tax shall be Plus Of excess over

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GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022) Over But not over The tax shall be Plus Of excess over 250,000 0 0 P 250,000 400,000 0 20% P 250,000 400,000 800,000 30,000 25% 400,000 800,000 2,000,000 130,000 30% 800,000 2,000,000 8,000,000 490,000 32% 2,000,000 8,000,000 2,410,000 35% 8,000,000 Nicanor, a Filipino Citizen residing in Manila, had the following data for the taxable year 2021: Gross income from rent of commercial spaces, net of P60,000 withholding tax P1,140,000 Dividend income From domestic corporation 50,000 60.000 From resident foreign corporation From non-resident foreign corporation 20,000 Interest income: On notes receivable 5.000 4.800 On Philippine bank deposit, net of FWT On Phil bank deposit under FCDU 4,000 On bank deposit abroad 5,000 On long-term bank deposit 20.000 Royalty income: From literary works 10,000 Other than literary works 12,000 5,000 On bank deposit abroad On long-term bank deposit 20,000 10,000 Royalty income: From literary works Other than literary works 12,000 Capital gains: On sale of shares of stock of ABC Corp. a closely held corporation directly to a buyer at P 550,000 On sale of vacation house in Bulacan (Acquisition Cost = 5,500,000; ZV = P 4,000,000, FMV per tax dec: 5,000,000) 200,000 500,000 Business expenses 691,000 1. How much is the taxable income? 2. How much is the income tax payable? 3. How much is the total capital tax due? 4. How much is the total passive income subject to final tax (excluding those subjects to capital gains? 5. How much is the total final tax due? (Excluding capital gains tax) 6. How much is the income exempt from income tax, if any? GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022) Over But not over The tax shall be Plus Of excess over 250,000 0 0 P 250,000 400,000 0 20% P 250,000 400,000 800,000 30,000 25% 400,000 800,000 2,000,000 130,000 30% 800,000 2,000,000 8,000,000 490,000 32% 2,000,000 8,000,000 2,410,000 35% 8,000,000 Nicanor, a Filipino Citizen residing in Manila, had the following data for the taxable year 2021: Gross income from rent of commercial spaces, net of P60,000 withholding tax P1,140,000 Dividend income From domestic corporation 50,000 60.000 From resident foreign corporation From non-resident foreign corporation 20,000 Interest income: On notes receivable 5.000 4.800 On Philippine bank deposit, net of FWT On Phil bank deposit under FCDU 4,000 On bank deposit abroad 5,000 On long-term bank deposit 20.000 Royalty income: From literary works 10,000 Other than literary works 12,000 5,000 On bank deposit abroad On long-term bank deposit 20,000 10,000 Royalty income: From literary works Other than literary works 12,000 Capital gains: On sale of shares of stock of ABC Corp. a closely held corporation directly to a buyer at P 550,000 On sale of vacation house in Bulacan (Acquisition Cost = 5,500,000; ZV = P 4,000,000, FMV per tax dec: 5,000,000) 200,000 500,000 Business expenses 691,000 1. How much is the taxable income? 2. How much is the income tax payable? 3. How much is the total capital tax due? 4. How much is the total passive income subject to final tax (excluding those subjects to capital gains? 5. How much is the total final tax due? (Excluding capital gains tax) 6. How much is the income exempt from income tax, if any

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