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Tax Sample Prob.

The document outlines the calculation of taxable income and tax due for individuals and corporations using the Optional Standard Deduction (OSD) and an 8% special tax rate. It provides sample problems illustrating how to compute annual taxable income and tax payable for different scenarios, including mixed income earners and various business types. The document includes specific figures for tax calculations and examples to clarify the application of tax rates.

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Alma Cario
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35 views6 pages

Tax Sample Prob.

The document outlines the calculation of taxable income and tax due for individuals and corporations using the Optional Standard Deduction (OSD) and an 8% special tax rate. It provides sample problems illustrating how to compute annual taxable income and tax payable for different scenarios, including mixed income earners and various business types. The document includes specific figures for tax calculations and examples to clarify the application of tax rates.

Uploaded by

Alma Cario
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
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Optional Standard Deduction

Individual

Sales/Receipts XX
Less: Sales Disc./Returns/Allow. (XX)
Net Sales/Receipts XX
Less: OSD (40%) (XX)
Add: Other Income XX
Taxable Income XX

Corporation

Net Sales/Receipts XX
Less: COGS (XX)
Gross Income XX
Add: Other Income XX
Total Gross Income XX
Less: OSD (40%) (XX)
Taxable Income XX

8% Special Rate
Purely from Business/Profession

Gross Sales/Receipts XX
Add: Other Income XX
Less: Allowed Deduction (250,000)
Taxable Business Income XX
Multiply: 8% 8%
Tax Due XX
Mixed Income Earner

*Taxable Compensation Income XX


Tax Due on Compensation XX
Gross Sales/Receipts XX
Add: Other Income XX
Taxable Business Income XX
Multiply: 8% 8%
Tax Due on Business Income XX
Total Income Tax Due (Compensation + Business) XX

*Use Graduated Income Tax (Tax table)


Sample Problems:
1. OD, a manufacturer of cellphone, uses the accrual method in reporting his income and
expenses. His transactions for the year 2024 show:

a. His annual taxable net income if he avails OSD instead of itemized deduction is? How
much is his income tax payable? P1,850,000/P365,000

b. If OD is a domestic corporation with total assets (excluding land) amounting to


P85,000,000 and avails OSD, how much would be the annual taxable net income of OD?
How much is the income tax payable of OD? P870,000/P174,000

c. If OD opts to use the 8% special tax rate in January to March, how much is the tax due?
P28,000

d. How much is the income tax due and still due for April to June? P72,000/P44,000
2. OS, a salesman that works for AA Co and has a balut business having the following
figures for the whole year:

Aside from having a balut business, he has also a non-operating income (not subject to
final tax) 70,000.

a. If OS signified his intention to avail the 8% special rate, how much is his tax due?P45,600
3. RC, an employee of DC Comp. and a businessman, earned the following for year 2024:

a. If RC signified his intention to avail the 8% special rate, how much is his tax due?
P146,500
4. Ms. GW, opted to use the 8% commuted tax at the start of the year:

a. How much is her tax due on 1st Qtr? P4,000

b. How much is her tax still due on 2nd Qtr? P36,000

c. How much is her tax still due on 3rd Qtr? P68,000

d. How much is her tax still due for the whole year? P42,400

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