Income Taxation

Direction:Answer the problem and provide your solution in good form.

Ms. Cyril Villar is employed in CAMEL Corporation and is also a part-time real estate agent for a real estate broker. In addition to the SMW of 180,000 she received from her employer, she likewise received 75,000 as commissions from her real estate dealings for the year 2018.

Required:

1. Compute for the amount of income tax and withholding tax depending on the income tax regime:

a. If Ms. Cyril elects the graduated income tax regime?

b. If Ms. Cyril elects the 8% income tax regime?

2. File the corresponding Income Tax Return (ITR) of Ms. Cyril Villar

a. If Ms. Cyril elects the graduated income tax regime.

b. If Ms. Cyril elects the 8% income tax regime.

Sample ITR form: https://www.grantthornton.com.ph/globalassets/1.-member-firms/philippines/tax-alerts/2019/03.22.2019/1701-jan-2018-encs.-final.pdf

Additional information:

Birthday: August 2, 1994

Phone number: 091234567890

Civil Status: Single

Zip Code: 4217

Citizenship: Filipino

Claiming foreign tax credits: No

Method of Deduction for Graduated: Itemized

Employer's TIN - 555-666-777-00000

Number of Attachments: 0