Juan dela Cruz, a newly hired operations manager of ABC Company, wondered how much would be his
Question:
Juan dela Cruz, a newly hired operations manager of ABC Company, wondered how much would be his withholding tax on compensation per month. Due to lack of technical knowledge on taxation, he consulted you and presented the following information:
Basic monthly pay, P45,500.00
Monthly gas allowance, P1,000.00
Monthly rice subsidy, P2,500.00
Mobile load and internet allowance, P1,200.00
Monthly contributions:
SSS Contribution, P1,125.00
Pag-IBIG Contribution, P300.00
Philhealth Contribution, P1,800.00
Compute the withholding tax on compensation income of Juan dela Cruz using this formula: 2,500 + (Excess of 33,333 * 25%)
PROBLEM 2
XYZ Inc., a domestic corporation, paid the following during the month of April 2022:
Merchandise, ABC Company (regular supplier), P150,000
Professional Fees - IT services, DEF IT Consulting Services, Inc. (one-time transaction), P400,000
Security Agency Fee, GHI Agency Services, Inc., P25,000
Rentals, JKL Leasing Corporation, P200,000
Cash Dividends, Various shareholders (all are Filipino residents), P400,000
Selling price of the land purchased from the seller which held the land as a capital asset, Juan dela Cruz, , P1,560,000
The land was sold when the zonal value was 2 million.
Compute the expanded withholding tax.
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg