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    Rosemarie Cruz
    This document provides income and expense information to calculate the taxable income of Mr. and Mrs. Dela Cruz for the 2018 tax year. It shows that Mr. Dela Cruz's taxable income is P684,000 and Mrs. Dela Cruz's taxable income is P1,870,000. This is calculated by taking their salaries, professional fees, rental income, and allocating shared items equally, then subtracting allowable expenses.

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    Answer: A

    Uploaded by

    Rosemarie Cruz
    1K views3 pages
    This document provides income and expense information to calculate the taxable income of Mr. and Mrs. Dela Cruz for the 2018 tax year. It shows that Mr. Dela Cruz's taxable income is P684,000 and Mrs. Dela Cruz's taxable income is P1,870,000. This is calculated by taking their salaries, professional fees, rental income, and allocating shared items equally, then subtracting allowable expenses.

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    CWT

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    This document provides income and expense information to calculate the taxable income of Mr. and Mrs. Dela Cruz for the 2018 tax year. It shows that Mr. Dela Cruz's taxable income is P684,000 and Mrs. Dela Cruz's taxable income is P1,870,000. This is calculated by taking their salaries, professional fees, rental income, and allocating shared items equally, then subtracting allowable expenses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    1K views3 pages

    Answer: A

    Uploaded by

    Rosemarie Cruz
    This document provides income and expense information to calculate the taxable income of Mr. and Mrs. Dela Cruz for the 2018 tax year. It shows that Mr. Dela Cruz's taxable income is P684,000 and Mrs. Dela Cruz's taxable income is P1,870,000. This is calculated by taking their salaries, professional fees, rental income, and allocating shared items equally, then subtracting allowable expenses.

    Copyright:

    © All Rights Reserved
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    of 3

    33.

    If he is a non-resident citizen and the taxable year is 2017, his income tax due after tax credit, if
    any is:

    a. P360,580 c. P384.380

    b. P358.020 d. P357.000

    ❖ Answer: D (SameSolutio
    solution with the preceding number)
    n:
    34. If he is a non-resident citizen and the taxable year is 2018, his income tax payable is:

    c. P295.000 c. P384.380

    d. P358.020 d. P357.000

    . ❖ Answer: A

    Business income (Philippines only) P1,000,000

    Professional income 400,000

    Salaries 200,000

    Business and professional expenses (250,000)

    Taxable net income P1,350,000

    Income Tax Due/Payable (Train Law) P295,000

    35. If he is a non-resident alien engaged in trade or business in the Philippines but without the
    benefit of Reciprocity Law, the income tax payable assuming the taxable year is 2017 should be:

    a. P397,000 c. P405.500

    b. P378.500 d. P338,500

    ❖ Answer: A

    Business income (Philippines only) P1,000,000

    Professionalincome „ 400,000

    Salaries 200,000

    Business and professional expenses (250,000)

    Basic personal exemption (no reciprocity)

    Additional personal exemption (no reciprocity) Taxable net income P1,350,000

    Income Tax Due/Payable (old table) P397,000


    ,g If he is a non-resident alien not engaged in trade or business, disregarding professin J business data, the
    total income tax that should be withheld from his income is: ° nal 5

    a. P50.000 c. P31.500

    b. P18.500 d. P338.500

    ❖ Answer: Solutio
    A
    n:
    G3 Income Tax Due = Salaries of P200.000 x 25% = P50.000 CJ Regardless of the taxable period (before
    or after TRAIN Law)

    37. If he is a Special Alien Employee, disregarding professional and business data, the total income
    tax that should be withheld from his income assuming the taxable year is 2017 should be:

    a. P18.500 . c. P11,500

    b. P30.000 d. None

    ❖ Answer: B

    o Income Tax Due = Salaries of P200.000 x 15% = P30.000

    o Prior to 2018, SAEs are taxable at 15% on their compensation income, o SAEs are now subject to basic
    tax on their compensation income under TRAIN Law,

    38. Mr. and Mrs. Dela Cruz, both CPAs and residents of the Philippines, with 5 minor children,
    had the following data for 2018 taxable year:
    Salaries, wife P1,200,000
    13th month pay and other bonuses, wife 140,000
    Professional Fees, (net of 5% CWT) 1,710,000
    Expenses - Practice of profession (15% nondeductible) 800,000
    Rental income (net of 5% withholding tax 190,000
    Rental expenses 80,000

    The taxable income of Mr. Dela Cruz is:

    a. P48400 c. P1,870,000

    b. P684,000 d. P2,554,000

    ❖ Answer: B

    39. The taxable income of Mrs. Dela Cruz is:

    a. P371.000 c. P1,870,000

    b. P359.000 d. P410,000
    ❖ Answer: C

    o CWT on “Professional Fees” under TRAIN Law '

    ■ Individual Payee

    0 Gross Income for the year < P3,000,000 = 5% 0 Gross Income for the year > P3,000,000 = 10%
    Solutio
    ■ Non-lndividual
    n: Payee

    0 Gross Income for the year £ P720i000 = 10%

    () Gross Income for the year > P720,000 = 15%

    o CWT on “Professional Fees" Prior to TRAIN Law

    ■ Amount is not more than P720.000 = 10%

    ■ Amount is more than P720.000 = 15%

    Solution:

    1 Mr. Mrs.
    Salaries P- P1-,200,000
    Excess of 13th month pay over tax exempt - 50,000
    benefit (140,000-90,000)
    Professional fees (P1,710,000/95%)/2 900,000 900,000
    Rental income (P190,000/95%)/2 100,000 100,000
    Professional expenses (P800,000 x 85%)/2 (340,000) (340,000)
    Rental expenses (P80,000/2) (40,000) (40,000)
    Other income (P80,000 x 80%) 64,000
    Taxable Net Income P684,000 P1,870,000

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