Answer to Question #187415 in Economics for Eleine

Question

GIVEN:

a. Assume you are the taxpayer, a resident citizen individual and 

single/unmarried.

b. You maintain your business office at your residential address.

c. You are also employed in XYZ Corporation located in your local area.

d. Your TIN number is 123-456-789

Q1 Q2 Q3 Q4

Sales 450,000 520,000 600,000 500,000

Other operating income 10,000 40,000 70,000 -

Non-operating income 20,000 - 10,000 -

Cost of sales 130,000 200,000 210,000 220,000

Allowable deductions 30,000 50,000 80,000 110,000

Creditable withholding taxes-business

(BIR Form 2307) 5,000 15,000 18,000 25,000

Annual Data

Gross compensation exclusive of 13th month pay & other 

benefits but net of mandatory contributions 360,000

Mandatory contributions 20,000

13th month pay & other benefits 60,000

Withholding tax on compensation withheld (BIR Form 2316) 22,000

COMPUTE:

B. Using OSD

1. Quarterly income tax

2. Annual income tax

C. Using the optional 8% tax, compute the ANNUAL income tax due.

Answer 1

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