Question

1. Dan Tamago is an employee of Itnok Poultry Farm who earns at a minimum. His total compensation income for 2020 amounted to 180,000.00. Tamago contributed 8,100.00 for his SSS, 900.00 for Philhealth and 3,600 for PAG-IBIG. On December 15, he received his 13th month pay at 15,000.00 which is equivalent to his basic monthly salary. How do you classify Mr. Tamago as a taxpayer? How will you compute for his taxable income and how much is the income tax due him?

Answer 1

Mr Tamago can be classified as an individual resident citizen.

Computation for his taxable income;

Taxable Income = (Monthly Basic Pay) – (SSS + PhilHealth + PAG-IBIG )

Income tax is due him;

=15,000-(8100+900+3600)

=2,400