Compute the income tax payable, if any for taxable year 2021.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter3: Preparing Your Taxes
Section: Chapter Questions
Problem 6FPE
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Instructions:
1. Download BIR Forms 1701 Version 2018 at www.bir.gov.ph.
2. Compute the income tax payable, if any for taxable year 2021.
YOU are engaged in the merchandising business and at the same time employed by PA-MINE Corp. as an Accountant for the TY 2021.
In compliance with the existing rules in doing business, you applied for your TIN where your home BIR RDO (select the BIR which has jurisdiction over the place of your residence) assigned you Taxpayer Identification No. 123-456-789-0000.
Additional information:
You chose graduated tax rate
You opted for itemized deduction
Your financial records showed the following:
Gross Sales – Php 4,000,000
Cost of Sales – Php 2,000,000
Expenses –
Salaries and wages of staff – Php 360,000
Depreciation of car used in delivery – Php 100,000
Representation expense – Php 10,000
Office Rent expense – Php 360,000
Rent expense on your condominium – Php – 240,000
Utilities in office – Php 120,000
Electricity expenses in condominium – Php 60,000
Registration fees of delivery car and other taxes – Php 5,000
Gas and oil – Php 120,000
Registration fees of personal car and other taxes – Php 5,000
Gas and oil of personal – Php 120,000
4. Your clients are Top Withholding Agents and thus withheld 1% on their purchases from you and given you Form 2307:
1st quarter 2307 – Php 10,000
2nd quarter 2307 – Php 10,000
3rd quarter 2307 – Php 10,000
4th quarter 2307 – Php 10,000
5. PA-MINE Corp. reported your gross compensation income for the year in the amount of Php 600,000.00
6. The non-taxable compensation is composed of the following
13th month pay – Php 50,000
Other benefits – Php 30,000
SSS, Philhealth, Pagibig – Php 20,000
De minimis benefits of Php – 10,000
7. PA-MINE Corp. withheld tax on your compensation in the amount of Php 20,000
Disregard the penalty, if any.
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