[go: up one dir, main page]
Scribd
Upload
335 views1 page

Which Is Subject To FINAL TAX

1) Individuals must file an annual income tax return reporting their gross income which includes compensation, business income, capital gains, interest, rents, royalties, dividends, pensions and partnership shares. 2) Capital gains from real property sales or stock dispositions are subject to a final tax of 6% of the fair market or selling price for real property and 15% for stock not listed on an exchange. 3) Passive income from interests, royalties, prizes, winnings and dividends are subject to a final tax ranging from 10-20%, except for a 10% exemption for certain royalties.

Uploaded by

butterfly kisses0217
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
335 views1 page

Which Is Subject To FINAL TAX

1) Individuals must file an annual income tax return reporting their gross income which includes compensation, business income, capital gains, interest, rents, royalties, dividends, pensions and partnership shares. 2) Capital gains from real property sales or stock dispositions are subject to a final tax of 6% of the fair market or selling price for real property and 15% for stock not listed on an exchange. 3) Passive income from interests, royalties, prizes, winnings and dividends are subject to a final tax ranging from 10-20%, except for a 10% exemption for certain royalties.

Uploaded by

butterfly kisses0217
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

As an Individual, you need to file an CAPITAL GAIN:

ANNUAL INCOME TAX RETURN


Subject to FINAL TAX:
ANNUAL INCOME TAX RETURN:
1) Real Property
Gross Income (0-35%) → When you sold a real
property held as Capital
1) Compensation for services in
Asset
whatever form paid, including,
→ 6% of Fair Market Value or
but not limited to fees, salaries,
Selling Price WHICHEVER is
wages, commissions, and similar
higher
items;
2) Disposition of Shares of Stock
2) Gross income derived from the
NOT treated or listed on Stock
conduct of trade or business or
Exchange
the exercise of a profession;
→ 15%
3) Gains derived from dealings in
property;
4) Interests; PASSIVE INCOME:
5) Rents;
6) Royalties; Subject to FINAL TAX:
7) Dividends;
8) Annuities; 1) Interest from Bank Deposit,
9) Prizes and winnings; Deposit Substitute, & Other
10) Pensions; and Similar Items
11) Partner’s distributive share from → 20%
the net income of the general 2) Royalties
professional partnership → 20%
→ But 10% is EXEMPTED if
Royalties from Books,
“FINAL TAX“ – These are taxes NOT Literary Works, & Musical
REPORTED on your Annual Income Composition
Tax Return because they have been 3) Prizes
fully paid already, therefore, there’s → 20%
no need to include them on your 4) Winning
Annual Income Tax Return → 20%
5) Dividend
→ 10%
BASIC RULE:

If it’s NOT a Passive Income subject


to Final Tax NOR a Capital Gain
subject to Final Tax, then it is
automatically part of the GROSS
INCOME in the Annual Income Tax
Return

You might also like