Mr. Boyba is a mixed income earner. In year 2020, he earned gross compensation income of P1,887,880, including 13th month pay and other benefits of P138,000. In his trading business, his gross sales is P2,764,180, cost of sales is P1,245,882 and incurred total deductible business expenses of P529,150.   

 

1. What is the income tax due of Boyba under the graduated income tax rates if he opted the OSD?

2. Based on the preceding problem, what is the income tax due of Boyba under the graduated income tax rates if he opted the itemized deductions?

3. Based on the preceding problem, what is the total income tax due of Boyba if he opt the 8% income tax rate?

4. Based on the preceding problem, compute the income tax due of Boyba if he opt the 8% income tax rate and he has no compensation income.

5. Based on the previous question, if during the year, total tax credits is P72,219 and total tax payments for the three quarters is P105,780, how much is the income tax payable (refundable)?

Answer rating: 100% (QA)

1 To calculate the income tax due for Mr Boyba we need to consider his compensation income and income from his trading business separately Well also calculate the income tax under different scenarios ... View the full answer