Mr. A is a VAT-registered professional offering accounting services to his clients in 2022. The following
Question:
Mr. A is a VAT-registered professional offering accounting services to his clients in 2022. The following data were reported from his income statement:
| First Quarter | Second Quarter |
Professional fee (All are government sales) | P2,000,000 | P2,800,000 |
Professional expenses from VAT registered | 2,500,000 | 1,200,000 |
Depreciation expense | 500,000 | 500,000 |
All of the fees received by Mr. A were properly withheld and the corresponding BIR Forms 2307 were issued to him.
He also opted the optional standard deduction (OSD) as a method of deduction.
Note: All amounts were collected and paid.
Additional information: He also received a quarterly compensation income of P180,000.
Amount of Net Taxable Income | Rate | |
Over | But Not Over |
|
- | P250,000 | 0% |
P250,000 | P400,000 | 20% of the excess over P250,000 |
P400,000 | P800,000 | P30,000 + 25% of the excess over P400,000 |
P800,000 | P2,000,000 | P130,000 + 30% of the excess over P800,000 |
P2,000,000 | P8,000,000 | P490,000 + 32% of the excess over P2,000,000 |
P8,000,000 |
| P2,410,000 + 35% of the excess over P8,000,000 |
Based on the information above, answer the following:
- How much is the overpayment of BIR Form No. 2550 Q in the second quarter of 2022?
- How much is the amount in line item 31 Part III of BIR Form No. 1701Q in the first quarter of 2022?
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding