Taxationlaw1 - Paulita's Draft (Individuals)

RESIDENT CITIZEN

TAX BASE: Income derived during a taxable year from all sources, within and without the Philippines.

INDIVIDUALS

CITIZENSA. RESIDENT CITIZENS (RC)

(n) A citizen of the Philippines residing therein, unless he qualifies as a nonresident citizen under Section 22 (E) of the NIRC.

He is a citizen of the Philippines who stays in the Philippines without the intention of transferring his physical presence abroad, whether to stay permanently or temporarily as an overseas contract worker (DOMONDON, Taxation Vol. II (2009))

Applicable Taxes:

1. Taxable Income;2. Final Withholding tax on Passive Income subject to final tax; or3. Capital Gains Tax on capital assets subject to capital gains tax.

TAXABLE INCOME

Income Subject to GRADUATED RATES:

1. Compensation Income;2. Business and Professional Income;3. Capital Gains not subject to final tax;4. Passive income not subject to final tax; and5. Other income.

Tax Rates: Taxable Net Income subject to graduated rate of 5%-32%.

Amount of Net Taxable Income

Rate

Over But Not Over

P10,000 5%

P10,000 P30,000 P500 + 10% of the Excess over P10,000

P30,000 P70,000 P2,500 + 15% of the Excess over P30,000




P500,000P125,000 + 32% of the Excess over P500,000 in 2000 and onward

RESIDENT CITIZEN

Final Withholding Tax on Passive Incomes subject to Final Tax

CAPITAL GAINS TAX

Interest Income Royalties Prizes & Winnings Dividends

A. Yield from Deposit Substitutes, Turst, Frunds & Other similar arrangments:

20%

B. Net Income From Expanded Foreign Currency Deposit System:

7.5%

C. Interest Income from Local Bank Deposits:

20%

A. Use and exhaustion of property such as earnings from copyrights, patents, trademarks, formulas and natural resources under lease:

20%

B. Royalties from books, literary works and musical compositions:

10%

NOTES:1. It covers both payments made:- Under license; and- Under Compensation which a person would be obliged to pay for fraudulently copying or infringing the right.2. Royalties must be derived from sources within the Philippines to be considered as passive income.3. If it is derived from sources outside the Philippines, the royalty income is subject to GRADUATED RATES.

A. Prizes (except P10,000 or less) & Winnings (regardless of the amount):

20%

XPN: PCSO and lotto winnings are not subject to final tax.

NOTES:

1. Prizes amounting to P10,000 or less, although exempt from final tax, are to be included in gross income and subject to the graduated rates.

2. Prizes and Winnings from sources without the PH are included in the Gross Income of a Resident Citizen.

CASH & PROPERTY DIVIDENDS

STOCK DIVIDENDS LIQUIDATING DIVIDENDS

1. On:

a. Cash &/or Property Dividends from domestic corporation or from a joint stock company, etc.

b. Share in the distributable net income after tax of a taxable or business partnership; and

c. Share in the net income after tax of an association, a joint account, or a joint venture or consortium taxable as a corporation of w/c he is a member or co-venturer:

10%

2. On cash and/or property dividends from a foreign corporation:

Graduated Rates of 5%-32%

GR: A stock dividend representing the transfer of surplus to capital account shall not be taxable. (Sec 73, B, NIRC)

Exceptions:

1. It gives the shareholder an interest different from that which his former stock represented;

2. Different classes of stocks were issued;

3. Stock dividend is table to Usufructuary;

4. When there is redemption or cancellation essentially equivalent to the distribution of taxable dividends;

5. The recipient is either than the shareholder; and

6. Dividends declared in the Guise of treasury stock dividend to avoid the effects of income taxation.

Liquidating gain is subject to:


RULES ON CAPITAL GAINS AND LOSSES of a RESIDENT CITIZEN

Fringe Benefits

Gross Income of a Resident Citizen subject to Income Tax

All income derived from whatever source, including but not limited to the following:

ORDINARY ASSETS

1. Stocks in Trade of the taxpayer or other properties of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year.

2. Property held by the taxpayer primarily for sale to customers in the ORDINARY COURSE OF BUSINESS.

3. Personal Property used in trade or business subject to depreciation.

4. Real property used in trade or business.

Note: The above-mentioned list is exclusive.

CAPITAL ASSETS

All properties not classified as ordinary asset.

-SUBJECT TO CGT-

A. Sales of shares of stock of a domestic corporation not listed and not traded through stock exchange by a non-dealer securities:

1st P100,000.00 – 5% In excess of P100,000.00 –

10%B. Sale or Other Disposition of Real

Property subject to CGT:

6% on the gross selling price or zonal values of the provincial and

city assessors, whichever is the highest

Tax Base:

Net Capital Gains on a per transaction basis.

XPNS:

- Sale of Principal Residence- Buyer is the Government or any of its political subdivisions- Sale subject to right of redemption

-NOT SUBJECT TO CGT-

Regular Income Tax Rates Rules to be followed in the

determination of the gross income:

Holding Period (NIRC, Sec 29 B)

Loss Limitation Rule (NIRC, Sec 29 C)

NELCO (NIRC, Sec 29 D)

Notes: The rules on capital gains and losses shall apply only if the transaction on capital assets is either a SALE OR EXCHANGE.

OTHER CAPITAL ASSETS NOT SUBJECT TO CGT

Involves sale or exchange or one considered as equivalent to a sale or exchange of property classified as capital asset except:

1. Unlisted shares of stock of a domestic corporation; and

2. Real property in the Philippines held as capital asset.

Tax Treatment:

1. Ordinary Gains – included in the gross income.

2. Ordinary Losses – deductible from gross income.

Tax Treatment and Rate:

Included in the gross income subject to the regular income tax rates.

Tax Base:

Net Capital Gains

RANK AND FILE EMPLOYEES

SUPERVISORY / MANAGERIAL EMPLOYEES

Subject to Withholding Tax on WAGES

Notes:

Similar fringe benefits granted to managerial or supervisory employees which are subject to FBT may likewise be given to R&F employees.

The monetary value of the fringe benefits given to R&F employees, although not subject to FBT, shall be considered as part of their compensation subject to applicable income tax rates.

Subject to Fringe Benefit Tax Rate – 32%

XPNS:- DE MINIMIS BENEFITS- BENEFITS PROVIDED FOR THE CONVENIENCE OF THE EMPLOYER

Tax Base: Grossed-up Monetary Value (GMV) of Fringe Benefits

Determination of GMV: by dividing the monetary value of the fringe benefit by 68%

Fringe Benefits Subject to FBT:

1. Housing2. Expense Account3. Vehicle of Any Kind4. Household Expenses5. Interest on loan less than the market rate to the extent of the difference between the market rate and actual rate granted6. Membership fees, dues and other expenses in social and athletic club7. Holiday and Vacation Expenses8. Expenses for Foreign Travel9. Educational Assistance to employee or his dependents10. Insurance Premium

Meaning of the Phrase “Gross Income from whatever Source Derived”

- Indicates a legislative policy to include all income not expressly exempted within the class of taxable income under our laws.(CIR vs. AIR India, G.R. No. 72443, January 29, 1988)

EXCLUSIONS FROM GROSS INCOME OF RESIDENT CITIZEN

GROSS INCOME

ANNUITIES

DIVIDENDS

INTERESTS

ROYALTIES

GAINS FROM DEALINGS IN PROPERTY

RENTS

COMPENSATION

PRIZES AND WINNINGS

GROSS INCOME FROM PROFESSION, TRADE OR BUSINESS

PARTNER’S SHARE IN THE NET INCOME OF

THE GENERAL PROFESSIONAL PARTNERSHIP

The following are likewise included in the taxpayer’s gross income:

1. Treasure found or punitive damages representing profits lost;

2. Amount received by mistake;

3. Cancellation of the taxpayer’s indebtedness on account of service rendered;

4. Payment of usurious interest;

5. Illegal gains;

6. Tax refunds and bad debts recovered;

7. Subsidy; and

8. Unutilized or excess of the campaign funds, which is in excess of campaign contributions over the candidate’s campaign expenditures.

PENSIONS

Income received or earned but is not included in the determination of gross income and thus not taxable either because:

1. They are not income, gain or profit.2. They represent return of capital.3. They are subject to another kind of internal revenue tax.4. They are income, gain or profits which are expressly exempt from income tax under the Constitution, tax treaty,

NIRC or general or special law.

EXCLUSION VS. EXEMPTION

EXCLUSION EXEMPTIONRefers to the removal of otherwise taxable items from the reach of taxation

Refers to an immunity or privilege, freedom from charge or burden to which other persons are subject to tax

(PLDT v Laguna, G.R. No. 151899, August 16, 2005)

DEDUCTIONS FROM GROSS INCOME OF RESIDENT CITIZEN

B. NON-RESIDENT CITIZENS (NRC)(n) A citizen of the Philippines who establishes to the satisfaction of the Commissioner the fact of his physical presence abroad with a definite intention to reside therein.

ITEMS OF EXCLUSIONS

1. PROCEEDS OF LIFE INSURANCE

CONDITION: The life insurance proceeds must be paid to the heirs or beneficiaries by reason of death of the insured, whether in a single sum or installment.

2. RETURN OF INSURANCE PREMIUM

CONDITION: The amounts must be received as a return of premiums paid by him under life insurance, endowment or annuity contracts.

3. GIFT, BEQUEST, DEVISE OR DESCENT

CONDITION: Only donated property is excluded from gross income.

4. COMPENSATION FOR INJURIES OR SICKNESS

CONDITION: The term injury includes death, even if there is no injury. If the person dies, the compensation received on account of his death is also excluded from the gross income.

5. RETIREMENT BENEFITS, PENSIONS AND GRATUITIES

CONDITION: It does not matter whether the retirement is voluntary. As long as requirements are met, the retirement proceeds are excluded from gross income.

7. MISCELLANEOUS ITEMS

- PASSIVE INCOME- INCOME DERIVED BY THE PHILIPPINE GOVERNMENT OR ITS POLITICAL SUBDIVISION- PRIZES AND AWARDS- PRIZES AND AWARDS GRANTED TO ATHLETES IN SPORTS COMPETITIONS LOCALLY OR ABROAD AND SANCTIONED BY THEIR NATIONAL SPORTS ASSOCIATION- 13TH MONTH PAY AND OTHER BENEFITS UP TO P30,000.00- GSIS, SSS, MEDICARE (NOW PHILHEALTH) AND PAG-IBIG CONTRIBUTIONS AND UNION DUES OF INDIVIDUALS- GAINS DERIVED FROM SALE OR EXCHANGE OF BONDS, DEBENTURES, OR OTHER CERTIFICATE OF INDEBTEDNESS WITH A MATURITY OF MORE THAN 5 YEARS- GAINS FROM REDEMPTION OF SHARES IN MUTUAL FUNDS

6. INCOME EXEMPT UNDER TREATY

CONDITION: Income of any kind to the extent required by any treaty obligation binding upon the Government of the Philippines may be excluded from the gross income.

ALLOWABLE DEDUCTIONS FOR RESIDENT CITIZEN

ITEMIZED DEDUCTION OPTIONAL STANDARD DEDUCTIONS

PREMIUM PAYMENTS ON HEALTH AND/OR

HOSPITALIZATION INSURANCE

PERSONAL EXEMPTIONS

NON-RESIDENT CITIZEN

A citizen of the Philippines who:

Works and derives income from abroad and whose employment thereat requires him to be physically present abroad most of the time during the taxable year;

Leaves the Philippines during the taxable year to reside abroad, either as an immigrant or for employment on a permanent basis;

Has been previously considered as a non-resident citizen and who arrives in the Philippines at any time during the taxable year to reside permanently in the Philippines shall be considered non-resident for the taxable year in which he arrives in the Philippines with respect to his income derived from sources abroad until the date of his arrival in the Philippines.

3 TYPES OF NON-RESIDENT CITIZENS

IMMIGRANTS

Citizens of the Philippines who leave the Philippines during the taxable year to reside abroad, either as immigrants or for employment on a permanent basis.

EMPLOYEES OF A FOREIGN ENTITY ON A PERMANENT BASIS

Citizens of the Philippines who work and derive income from abroad and whose employment thereat requires them to be physically present abroad most of the time during the taxable year.

OFWs

Citizens of the Philippines who are working and deriving income from abroad as overseas contract workers.

Applicable Taxes:


TAXABLE INCOME

NON-RESIDENT CITIZEN





Rate

Over But Not Over

P10,000 5%







CAPITAL GAINS TAX



20%


7.5%

EXCEPT OCW AND SEAMEN


20%


20%


10%

NOTES:1. It covers both payments made:- Under license; and- Under Compensation which a person would be obliged to pay for fraudulently copying or infringing the right.2. Royalties must be derived from sources within the Philippines to be considered as passive income.3. If it is derived from sources outside the Philippines, the royalty income is EXEMPT.


20%


NOTES:


2. Prizes and Winnings from sources without the PH are NOT included in the Gross Income of a Non-Resident Citizen.



1. On:




10%

2. On cash and/or property dividends from a foreign corporation (if considered from sources within PH):



Exceptions:









ORDINARY ASSETS






CAPITAL ASSETS


-SUBJECT TO CGT-


1st P100,000.00 – 5%In excess of P100,000.00 – 10%

B. Sale or Other Disposition of Real Property subject to CGT:


city assessors, whichever is the





RULES ON CAPITAL GAINS AND LOSSES of a NON-RESIDENT CITIZEN



Tax Base:

Net Capital Gains

Fringe Benefits

Gross Income of a Non-Resident Citizen subject to Income Tax

All income derived from whatever source, including but not limited to the

CAPITAL ASSETS


-SUBJECT TO CGT-


1st P100,000.00 – 5%In excess of P100,000.00 – 10%



city assessors, whichever is the

Tax Treatment:





Tax Base:

Net Capital Gains




Notes:









GROSS INCOME

ANNUITIES

DIVIDENDS

INTERESTS


RENTS

COMPENSATION



PENSIONS



EXCLUSIONS FROM GROSS INCOME OF NON-RESIDENT CITIZEN








ROYALTIES

PRIZES AND WINNINGS







5. Illegal gains;


7. Subsidy; and

8. Unutilized or excess of the campaign funds, which is in excess of campaign contributions over the candidate’s campaign expenditures.



DEDUCTIONS FROM GROSS INCOME OF NON-RESIDENT CITIZEN

alienA. RESIDENT ALIENS (RA)

(n) An individual whose residence is within the Philippines and who is not a citizen thereof.

*An alien who shall have stayed in the Philippines for more than one year by the end of the calendar year is a resident alien. An alien who has acquired residence in the PH retains his status as a resident alien until he abandons the same and actually departs from the PH. Mere intention to change his residence is not enough.

An alien is considered a resident of the Philippines for income tax purposes if:

He is not a mere transient or sojourner.

He has no definite intention as to his stay in the Philippines.

His purpose is of such a nature that an extended stay may be necessary for its accomplishment and to that end, the alien makes his home temporarily in the Philippines.

ITEMS OF EXCLUSIONS













ALLOWABLE DEDUCTIONS FOR NON-RESIDENT CITIZEN




PERSONAL EXEMPTIONS

RESIDENT ALIEN

TAX BASE: Income derived during a taxable year from all sources, within the Philippines.

RESIDENT ALIEN

Applicable Taxes:


TAXABLE INCOME






Rate

Over But Not Over

P10,000 5%









20%


7.5%


20%


10%

NOTES:


20%


NOTES:




1. On:



c. Share in the net income after tax of an association, a joint account, or


Exceptions:




4. When there is



CAPITAL GAINS TAX


10%

NOTES:

NOTES:


1. On:



c. Share in the net income after tax of an association, a joint account, or


Exceptions:




4. When there is

ORDINARY ASSETS






CAPITAL ASSETS


-SUBJECT TO CGT-


1st P100,000.00 – 5%In excess of P100,000.00 – 10%




Tax Base:


XPNS:

- Sale of Principal Residence- Buyer is the Government or any of its





Tax Treatment:



RULES ON CAPITAL GAINS AND LOSSES of a RESIDENT ALIEN



Tax Base:

Net Capital Gains

Fringe Benefits

Gross Income of a Resident Alien subject to Income Tax


CAPITAL ASSETS


-SUBJECT TO CGT-


1st P100,000.00 – 5%In excess of P100,000.00 – 10%




Tax Base:


XPNS:

- Sale of Principal Residence- Buyer is the Government or any of its




Notes:









GROSS INCOME

ANNUITIES

DIVIDENDS

INTERESTS

ROYALTIES


RENTS

COMPENSATION

PRIZES AND WINNINGS







3. Cancellation of the taxpayer’s indebtedness on

PENSIONS



EXCLUSIONS FROM GROSS INCOME OF RESIDENTALIEN











3. Cancellation of the taxpayer’s indebtedness on





DEDUCTIONS FROM GROSS INCOME OF RESIDENT ALIEN

B. NON-RESIDENT ALIENS (NRA)(n) An individual whose residence is not within the Philippines and who is not a citizen thereof.

*The term “trade or business” includes the performance of services by the taxpayer as an employee. The term has also been expanded to include the exercise of profession.

Applicable Taxes:


CLASSIFICATIONS OF NON-RESIDENT ALIEN

A. ENGAGED IN TRADE OR BUSINESS

- A non-resident alien whose stay in the Philippines is more than 180 days during any calendar year.

B. NOT ENGAGED IN TRADE OR BUSINESS

- A non-resident alien whose stay in the Philippines is NOT more than 180 days during any calendar year.

ITEMS OF EXCLUSIONS 3. GIFT, BEQUEST, DEVISE OR DESCENT










ALLOWABLE DEDUCTIONS FOR RESIDENT CITIZEN




PERSONAL EXEMPTIONS

NON-RESIDENT ALIEN ENGAGED IN TRADE OR BUSINESS

TAX BASE: Regular income derived from sources within the Philippines.

NON-RESIDENT ALIEN ENGAGED IN TRADE OR BUSINESS

TAXABLE INCOME (NRA-ETB)






Rate

Over But Not Over

P10,000 5%









20%


N/A


20%


20%


10%

NOTES:1. It covers both payments made:- Under license; and- Under Compensation which a person would be obliged to pay for fraudulently copying or infringing the right.2. Royalties must be derived from sources within the


20%


NOTES:


2. Prizes and Winnings from sources without the PH are NOT included in the Gross Income of a Non-Resident Alien Engaged in Trade or Business.



1. On:




20%


Exceptions:






6. Dividends declared



CAPITAL GAINS TAX


10%

NOTES:1. It covers both payments made:- Under license; and- Under Compensation which a person would be obliged to pay for fraudulently copying or infringing the right.2. Royalties must be derived from sources within the


Exceptions:






6. Dividends declared

ORDINARY ASSETS






CAPITAL ASSETS


-SUBJECT TO CGT-


1st P100,000.00 – 5%In excess of P100,000.00 – 10%




Tax Base:


XPNS:

- Buyer is the Government or any of its political subdivisions- Sale subject to right of redemption

A NRA is not entitled to the exemption of payment of CGT in case of sale of Principal Residence.






Tax Treatment:



RULES ON CAPITAL GAINS AND LOSSES of a NON-RESIDENT ALIEN ENGAGED IN TRADE OR BUSINESS



Tax Base:

Net Capital Gains

Fringe Benefits

Gross Income of a Non-Resident Alien engaged in trade or business subject to Income Tax


CAPITAL ASSETS


-SUBJECT TO CGT-


1st P100,000.00 – 5%In excess of P100,000.00 – 10%




Tax Base:


XPNS:







Notes:









GROSS INCOME

ANNUITIES

DIVIDENDS

INTERESTS

ROYALTIES


RENTS

COMPENSATION

PRIZES AND WINNINGS









5. Illegal gains;

PENSIONS



EXCLUSIONS FROM GROSS INCOME OF NON-RESIDENTALIEN ENGAGED IN TRADE OR BUSINESS













5. Illegal gains;

ITEMS OF EXCLUSIONS







DEDUCTIONS FROM GROSS INCOME OF NON-RESIDENT ALIEN ENGAGED IN TRADE OR BUSINESS









ALLOWABLE DEDUCTIONS FOR NON-RESIDENT ENGAGED IN TRADE OR

BUSINESS

ITEMIZED DEDUCTION PREMIUM PAYMENTS ON HEALTH AND/OR


PERSONAL EXEMPTIONS

NON-RESIDENT ALIEN NOT ENGAGED IN TRADE OR BUSINESS

TAX BASE: Income derived within the Philippines only.

TAXABLE INCOME (NRA-NETB)

*The entire income received from all sources within the Philippines by every nonresident alien individual not engaged in trade or business within the Philippines shall be taxable as interest, cash and/or property dividends, rents, salaries, wages, premiums, annuities, compensation, remuneration, emoluments, or other fixed or determinable annual or periodic or casual gains, profits, and income, and capital gains, a tax equal to twenty-five percent (25%) of such income. (Section 25 (B))

Tax Rates: 25% tax on the Gross Income and NO DEDUCTIONS ARE ALLOWED.

NON-RESIDENT ALIEN NOT ENGAGED IN TRADE OR BUSINESS




25%


N/A


25%


25%


25%

NOTES:1. It covers both payments made:- Under license; and- Under Compensation which a person would be obliged to pay for fraudulently copying or infringing the right.2. Royalties must be derived from sources within the Philippines to be considered as passive income.3. If it is derived from sources outside the Philippines, the royalty income is EXEMPT.

A. Prizes & Winnings (regardless of the amount):

25%


NOTES:

1. Prizes and Winnings from sources without the PH are NOT included in the Gross Income of a Non-Resident Alien NOT Engaged in Trade or Business.



1. On:




25%


Exceptions:








25%

CAPITAL GAINS TAX


Exceptions:







ORDINARY ASSETS






CAPITAL ASSETS


-SUBJECT TO CGT-


1st P100,000.00 – 5%In excess of P100,000.00 – 10%




Tax Base:


XPNS:







Loss Limitation Rule (NIRC,





Tax Treatment:



RULES ON CAPITAL GAINS AND LOSSES of a NON-RESIDENT ALIEN NOT ENGAGED IN TRADE OR BUSINESS



Tax Base:

Net Capital Gains

Fringe Benefits

Gross Income of a Non-Resident Alien NOT engaged in trade or business subject to Income Tax



CAPITAL ASSETS


-SUBJECT TO CGT-


1st P100,000.00 – 5%In excess of P100,000.00 – 10%




Tax Base:


XPNS:







Loss Limitation Rule (NIRC,




Notes:









GROSS INCOME

ANNUITIES

DIVIDENDS

INTERESTS

ROYALTIES


RENTS

COMPENSATION

PRIZES AND WINNINGS









5. Illegal gains;


7. Subsidy; and

8. Unutilized or excess of the

PENSIONS


EXCLUSIONS FROM GROSS INCOME OF NON-RESIDENTALIEN NOT ENGAGED IN TRADE OR BUSINESS













5. Illegal gains;


7. Subsidy; and

8. Unutilized or excess of the

ITEMS OF EXCLUSIONS









DEDUCTIONS FROM GROSS INCOME OF NON-RESIDENT ALIEN NOT ENGAGED IN TRADE OR BUSINESSNOTE: No deductions are allowed on a Non-Resident Alien not engaged in Trade or Business.

Special Classes of Individual Employees

SPECIAL CLASSES OF INDIVIDUAL EMPLOYEES

MINIMUM WAGE EARNER

MWEs shall be exempt from the payment of income tax and withholding tax. The holiday pay, overtime pay, nightshift differential and hazard pay received by such minimum wage earners shall likewise be exempt from income tax.

Individual whether FILIPINO or ALIEN employed by the following:

Regional or area headquarters and regional operating headquarters of multinational companies in the Philippines.

Offshore banking units established in the Philippines.

Foreign Service contractors or sub-contractors engaged in petroleum operations in the Philippines.

Tax Rate: 15%

Tax Base: Gross income received as salaries, wages, annuities, compensation, remuneration and other emoluments, such as honoraria and allowances.

Persons Liable:

Alien and Filipinos occupying managerial and technical positions in said establishment.

Option 1:

Final income tax of:

15%

Option 2:

Graduated Rates on taxable compensation income:

5%-32%Filipinos must be holding a

managerial or

supervisory position

Tax Rate: 15%


Persons Liable:


Tax Rate: 15%


Persons Liable:


Option 1:


15%

Option 1:


15%

Option 2:


5%-32%

Option 2:


5%-32%Filipinos must be holding a

managerial or


AND there are aliens

holding the

Filipinos must be holding a

managerial or


AND there







Fringe Benefits for Individual whether FILIPINO or ALIEN employed by Regional or area headquarters and regional operating headquarters of multinational companies in the Philippines, Offshore banking units established in the Philippines or Foreign Service contractors or sub-contractors engaged in petroleum operations in the Philippines.


managerial or



managerial or


AND there are aliens

holding the


managerial or


AND there




Notes:









EXCLUSIONS FROM GROSS INCOME OF Individual whether FILIPINO or ALIEN employed by Regional or area headquarters and regional operating headquarters of multinational companies in the Philippines, Offshore banking units established in the Philippines or Foreign Service contractors or sub-contractors engaged in petroleum operations in the Philippines.








ITEMS OF EXCLUSIONS











Taxationlaw1 - Paulita's Draft (Individuals)

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Transcript of Taxationlaw1 - Paulita's Draft (Individuals)