Compute the income tax payable, if any. PURELY SELF-EMPLOYED INDIVIDUALS WHO AVAILED 8% Relevant information: YOU are engaged solely in the business of selling goods and merchandise in 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: For the year 2021, you chose 8% tax rate Your financial records showed the following: Gross Sales – Php2,000,000 Cost of Sales – Php 1,000,000 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 3. 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 4. Rental income – Php 500,000 5. In 2020, you have overpaid Php 50,000 income tax 6. Tax payments for the three quarters of 2021 amounted to Php 220,000 Disregard the penalty, if any.
Compute the income tax payable, if any. PURELY SELF-EMPLOYED INDIVIDUALS WHO AVAILED 8% Relevant information: YOU are engaged solely in the business of selling goods and merchandise in 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: For the year 2021, you chose 8% tax rate Your financial records showed the following: Gross Sales – Php2,000,000 Cost of Sales – Php 1,000,000 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 3. 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 4. Rental income – Php 500,000 5. In 2020, you have overpaid Php 50,000 income tax 6. Tax payments for the three quarters of 2021 amounted to Php 220,000 Disregard the penalty, if any.
Chapter6: Business Expenses
Section: Chapter Questions
Problem 51P
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Compute the income tax payable, if any.
PURELY SELF-EMPLOYED INDIVIDUALS WHO AVAILED 8%
Relevant information:
YOU are engaged solely in the business of selling goods and merchandise in 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:
For the year 2021, you chose 8% tax rate
Your financial records showed the following:
Gross Sales – Php2,000,000
Cost of Sales – Php 1,000,000
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
3. 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
4. Rental income – Php 500,000
5. In 2020, you have overpaid Php 50,000 income tax
6. Tax payments for the three quarters of 2021 amounted to Php 220,000
Disregard the penalty, if any.
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ISBN:
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Author:
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