Income Tax Presentation
Income Tax Presentation
PRESENTED BY:
CARALIPIO, JEZAMIE C.
WE WILL KNOW:
I. REGULAR OR GENERAL CORPORATE INCOME TAX
II. MINIMUM CORPORATE INCOME TAX
III. OPTIONAL CORPORATE INCOME TAX
IV. IMPROPERLY ACCUMMULATED EARNINGS TAX
INTRODUCTION
Domestic corporations and resident citizens are subject to
The Bureau
Philippine of worldwide
tax on their Internal income;
Revenue administers
foreign
nationalnon-resident
corporations, taxes whilecitizens
the treasurer and
and aliens areassessors
subject to
officestax
Philippine ofondifferent
Philippinelocal governments
source income only. administer
The general
taxation
localframework
taxes. TheforBureau
the Philippines is set collects
of Customs out in thetaxes
National
and Internal
dutiesRevenue
on Code of 1997,
imports. commonly area
Regional
referred to as the Philippine
headquarters (RHQ) are Taxnot
Code. However,
subject laws
to Philippine
relating to tax incentives are generally contained in the
tax; Regional Operating Head Quarters
statute governing the relevant investment incentive and close
(ROHQ) are subject to 10% tax on their taxable
regard needs to be had for frequent regulations and rulings
income.
issued by the Bureau of Internal Revenue.
Taxes are imposed at both national and local government
level.
In General. - an income tax of thirty percent
(30%) is hereby imposed upon the taxable
income derived during each taxable year
from all sources within and without the
Philippines by every corporation.
Optional Corporate Income Tax (Gross Income Tax)
The President, upon the recommendation of the Secretary of Finance may, effective
January 1, 2000, allow corporations the option to be taxed at fifteen percent (15%) of gross
income as defined herein, after the following conditions shall have to be satisfied in the
allowance of optional corporate tax:
The option to be taxed based on gross income shall be available only to firms whose ratio of
cost of sales to gross sales or receipts from all sources does not exceed 55%.
Minimum Corporate Income Tax on Domestic Corporations.