An individual (Resident citizen) earning compensation and business income provided the following income (within the Philippines unless otherwise stated) for the year:

Director's fee	220,000
Basic salary (gross of 79,000 withholding tax)	395,000
Rental income (net of 10% withholding tax)	225,000
Business income	280,000
Business expenses	125,000
Cash dividend from domestic corporation	80,000
Stock dividend from a domestic corporation	25,000
Cash dividend from resident foreign corporation	55,000
PCSO winnings	8,000
Interest income from a bank under FCDS	10,000
Royalty income from literary works	25,000
Prizes from contest won (net of final withholding tax)	20,000
13th month pay	40,000
Mid-year bonus	30,000
Compensation on damages from injuries and sickness	100,000
Proceeds from life insurance coverage of his deceased father	250,000
Christmas bonus	35,000
Tax refund on special assessment	9,000
Retirement benefit not under a reasonable private benefit plan	20,000
Vacation and sick leave pay	60,000
Proceeds from his life insurance (60,000 represents return on premium)	140,000
Unused monetized vacation leave in excess of 10 days allowed de minimis benefit	20,000
Local tax refund	10,000
Bad debt recovery (From a previous write-off with a net loss of 20,000 before write-off)	60,000
Prizes received from a religious activity	15,000
Properties received by donation (income from property, 7,000)	15,000

Determine amount of final tax.

Answer rating: 100% (QA)

The individuals final tax liability would be as follows Directors fee 220000 Basic salary gross of 7... View the full answer