INCOME TAXATION

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TOPIC: GROSS INCOME

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1. Royalty Income Pacman is a resident Filipino citizen, an inventor, a song writer and international singer. He receives royalties within and outside the Philippines as follows: Royalties from pain reliever invention Royalties from musical compositions Royalties from books What is the amount of final tax on royalty income? What is the amount of royalty income subject to regular tax? J. Comprehensive Problem Mrs. Rowena reports the following items of income and expenses as of December 31, 2022 PH Abroad 100,000.00 200,000.00 200,000.00 300,000.00 500,000.00 100,000.00 Cash salary, net of withholding tax, 25,000 and SSS 3,000 Dividend from San Magnolia Corporation One year note receivable from the employer, net of discount 1,000 (maturity June 30, 2022) Gross Income from business Allowable expenses Prepaid rent income Interest from insurance proceeds, net of withholding tax Bad debt recovery (60% previously written off) Gambling winnings Gambling losses Income tax refund Household expenses Donation from relatives Winnings Stock dividends from Asia Brewery at fair market value Compute for the taxable income subject to regular tax 302,000.00 30,000.00 19,000.00 400,000.00 250,000.00 50,000.00 18,000.00 38,000.00 20,000.00 30,000.00 8,000.00 200,000.00 150,000.00 10,000.00 4,000.00 1. Royalty Income Pacman is a resident Filipino citizen, an inventor, a song writer and international singer. He receives royalties within and outside the Philippines as follows: Royalties from pain reliever invention Royalties from musical compositions Royalties from books What is the amount of final tax on royalty income? What is the amount of royalty income subject to regular tax? J. Comprehensive Problem Mrs. Rowena reports the following items of income and expenses as of December 31, 2022 PH Abroad 100,000.00 200,000.00 200,000.00 300,000.00 500,000.00 100,000.00 Cash salary, net of withholding tax, 25,000 and SSS 3,000 Dividend from San Magnolia Corporation One year note receivable from the employer, net of discount 1,000 (maturity June 30, 2022) Gross Income from business Allowable expenses Prepaid rent income Interest from insurance proceeds, net of withholding tax Bad debt recovery (60% previously written off) Gambling winnings Gambling losses Income tax refund Household expenses Donation from relatives Winnings Stock dividends from Asia Brewery at fair market value Compute for the taxable income subject to regular tax 302,000.00 30,000.00 19,000.00 400,000.00 250,000.00 50,000.00 18,000.00 38,000.00 20,000.00 30,000.00 8,000.00 200,000.00 150,000.00 10,000.00 4,000.00

Answer rating: 100% (QA)

I Royalty Income To determine the amount of final tax on royalty income and the amount of royalty income subject to regular tax we need to know the ap... View the full answer