Tax Tables

Use the following tax tables to answer your questions, where necessary.

Rates of tax from 2016/2017 tax years

Resident companies On taxable income

Standard rate 22%

Manufacturing company rate 15%

Non-resident companies

Standard rate 30%

Resident individuals

P0 P36,000 Nil

P36,001 P72,000 Nil + 5% of excess over 36 000

P72,001 P108,000 P1,800 + 125% of excess over 72 000

P108,001 P144,000 P6,300 + 1875% of excess over 108 000

Over P144,000 P13,050 + 25% of excess over 144 000

Capital gains individuals

P0 P18,000 Nil

P18,001 P72,000 P0 + 5% of excess over 18 000

P72,000 P108,000 P2,700 + 12.5% of excess over 72 000

P108,000 P144,000 P7,200 + 18.75% of excess over 108 000

Over P144,000 P13,950 + 25% of excess over 120 000

Capital gains companies

Net aggregate gains are taxable at the company rates of tax.

Tax on Foreign dividend 15%

Basis of valuation of benefits

Value added tax (VAT) rate 12%

Individuals vehicle benefit

Vehicle cost Employee benefit Fuel cost adjustment

P1 - P50 000 P2 500 P1 000

P50 001 - P100 000 P5 000 P2 000

P100 001 - P150 000 P7 500 P3 000

P150 000 - P200 000 P10 000 P4 000

Benefit on the excess of P200 000 is 15% thereof with a maximum fuel cost adjustment of P5 000.

Individuals housing benefit:

If rated:

10% of the propertys rateable value prorated by occupation and reduced by any contribution made by the employee.

If not rated:

Gross floor area x P250 per sq metre x 8% for a standard building

The benefit is prorated by period of use and reduced by any contribution made by the employee.

Individuals furniture benefit

10% of furniture cost in excess of P15, 000 pro - rated by usage.

a. Phenyo is an employee of Government School but she also involves in farming business and has some other investments. She provided the following details of her farming income; Year Income (P) 2017 220,000 2018 175,000 2019 (520,000) 2020 200,000 Required: Brief on Farming losses on S42 and S46 and apply them to calculate the options of relief and advise Phenyo to reduce her chargeable farming income. (8 marks) b. Immovable property Phenyo sold a piece of land with a beautiful farmhouse for P2,420,000 in May 2019 and she provided the following details; The land was purchased in March 2006 for P200,000 and a house was built in June 2008 costing P310,000.

In February 2012, the house was renovated and modernised with the cost of P180,000. Capital allowance was on disposed asset was P225,000 up to the date of disposal. Shares Phenyo also invested on the shares of the following co. Purchased No. of Shares Cost (P) 1 Feb 2012 ABC Ltd Co 500 56,000 15 May 2014 LMN Co 200 13,400 20 Aug 2016 XYZ Securities 1000 150,000 In June 2019, she sold 1000 shares for P210,000. She has a capital loss brought forward from the last year 2018 was P155,000. You are required to calculate. i. disposal gain / loss on the sale of the farmhouse. (8 marks) ii. disposal gain / loss in the sale of shares (6 marks) iii. Phenyos net disposal gain / loss for the year ending 30 June 2019 (3 marks)