A non-VAT taxpayer had P1,000,000 net income before deducting the below items: Donations to government priority...

 

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A non-VAT taxpayer had P1,000,000 net income before deducting the below items: Donations to government priority programs 180,000 Donations to accredited charitable institution (admin expenses accounted to 40% of all expenses) Donations to street beggars Donation to government for public purpose 40,000 30,000 20,000 10,000 Donations to an accredited NGO with certifications from CHED Donations to foreign institutions (50% covered by international treaties) Donations to government of healthcare equipment to combat COVID 19 during the period of ECQ, not included in NEDA's priority plan Discounts from sale of goods given to national athletes and coaches Discounts from sale of goods given to PWDS and senior citizens MCIT paid in the Philippines Income tax paid in Japan (claimed as deduction) Donor's tax paid Real property tax paid Special assessment on land Percentage tax paid VAT on importation of ending inventory Provision for uncollectible accounts 16,000 20,000 5,000 9,000 5,000 2,000 10,000 2,000 3,000 4,000 4,000 2,000 Labor training expenses incurred for skill development of enterprise- based trainees 50,000 Q1. What is the taxable income if the taxpayer is an individual? Q2. What is the taxable income if the taxpayer is a corporation? A non-VAT taxpayer had P1,000,000 net income before deducting the below items: Donations to government priority programs 180,000 Donations to accredited charitable institution (admin expenses accounted to 40% of all expenses) Donations to street beggars Donation to government for public purpose 40,000 30,000 20,000 10,000 Donations to an accredited NGO with certifications from CHED Donations to foreign institutions (50% covered by international treaties) Donations to government of healthcare equipment to combat COVID 19 during the period of ECQ, not included in NEDA's priority plan Discounts from sale of goods given to national athletes and coaches Discounts from sale of goods given to PWDS and senior citizens MCIT paid in the Philippines Income tax paid in Japan (claimed as deduction) Donor's tax paid Real property tax paid Special assessment on land Percentage tax paid VAT on importation of ending inventory Provision for uncollectible accounts 16,000 20,000 5,000 9,000 5,000 2,000 10,000 2,000 3,000 4,000 4,000 2,000 Labor training expenses incurred for skill development of enterprise- based trainees 50,000 Q1. What is the taxable income if the taxpayer is an individual? Q2. What is the taxable income if the taxpayer is a corporation?

Answer rating: 100% (QA)

Solution Net income before deducting the following items with a nonVAT taxpayer P1000000 Donations for government priority programs Donations to recognized charitable institutions 180000 Administrator spending is responsible for 40 of all expenses 40000 Donation ... View the full answer