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Katya Corporation, has the following data in the year 2022: During the taxable year, the total assets of the corporation is P25,000,000. Additional information: 1.
Katya Corporation, has the following data in the year 2022:
During the taxable year, the total assets of the corporation is P25,000,000. Additional information: 1. The income tax rate is 25% because the taxable income is more than P5,000,000. 2. The interest on money market placements is net of withholding tax of 20%. Therefore, the amount of P21,000 is equivalent to 80% only of the actual amount. To compute for the 100% which is the basis in computing the tax, the amount which is net of the tax be divided by 80%. 3. The interest on money market placements of the nonresident foreign corporation in the amount of P21,000 is net of 25% tax or equivalent to 75% (100%25%) only. To compute the amount which is gross tax, it has to be divided by 75%. Requirement: Compute the income tax due and the final taxes payable of Katya Corporation if: (a) Domestic corporation (b) Resident foreign corporation (c) Nonresident foreign corporationStep by Step Solution
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