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19 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Corporate Taxes |
1. Standard Income Tax a. Net Income Tax (Ordinary Income) b. FWT (Passive Income) c. CGT (Capital Gains) 2. Penalty Income Tax a. Minimum Corporate Income Tax b. Improperly Accumulated Earnings Tax 3. Special Income Tax a. Gross Income Tax b. Branch Profit Remittance Tax |
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Standard Income Tax 1. Ordinary Income |
DC and RFC : 30% net income NRFC : 30% FT on gross income |
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Standard Income Tax
2. Passive Income - Interest Income |
Interest on currency deposit DC and RFC : 20% NRFC : 30%
Interest from EFCDS DC : TRAIN 15% NIRC 7.5% RFC : 7.5 % NRFC : Exempt |
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Standard Income Tax 2. Passive Income - Royalties |
Royalties DC and RFC : 20% NRFC : 30% |
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Standard Income Tax
2. Passive Income - Dividends |
Intercorporate Dividend DC and RFC : Exempt NRFC : 15% FT |
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Standard Income Tax 3. Capital Gains - Domestic Shares |
TRAIN 1. Not traded at PSE DC : 15% net capital gain FC : 5% and 10% 2. Shares listed and traded at PSE 6/10 of 1% selling price |
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Standard Income Tax 3. Capital Gains - Real Property |
DC : 6% (selling, zonal, assessed) RFC : 30% net capital gain - normal tax NEFC : 30% FT net capital gain |
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Penalty Income Taxes
1. Minimum Corporate Income Tax (MCIT) |
2% × gross income
✔zero/negative taxable income ✔MCIT > RCIT ✔DC and RFC |
Gross Income = Total GI subj to regular tax |
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MCIT exempt entities |
1. REIT 2. DC taxed under 15% CIT 3. DC and RFC subj to special tax rates 4. All NRFC |
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RULES |
1. Excess MCIT computed anually 2. Excess MCIT may be carried forward and credited vs. RCIT for 3 succeeding years 3. Quarterly Tax = MCIT or RCIT whichever is higher |
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Quarterly Tax Due (accumulated computation) - MCIT |
MCIT Less: CWT Quarterly income tax payments Excess tax credits prior year --------------- Income tax payable =========
❌Excess MCIT from prior years not allowed to be credited |
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Quarterly Tax Due (accumulated computation) - RCIT |
RCIT Less: Excess MCIT prior years CWT Quarterly income tax payments Excess tax credits prior year ------------------ Income tax payable =========== |
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Penalty Income Taxes 2. Improperly Accumulated Earnings Tax (IAET) |
10% improperly accumulated taxable income ✔Domestic corporations only (regular and special) |
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Prima facie presumed improperly accumulating earnings |
Holding companies Investment companies Closely held corporations |
HIC |
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IAET exemt entities |
Publicly held corporations Finance companies Banks Insurance companies |
PFBI |
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Special Income Taxes
1. Branch Profit Remittance Tax (BPRT) |
15% of total profits earmarked for remittance - net of corporate tax |
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Scope of BPRT |
Resident foreign corporations ROHQ of MNC FCDU or OBU of foreign banks International carriers |
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Special Income Taxes 2. Gross Income Tax (GIT) |
option to be taxed at 15% of gross income instead of 30% net income tax ✔DC and RFC ✔3 year irrevocability |
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Requisites to avail GIT |
✔tax ratio to GNP - 20% ✔income tax collection to totalbtax revenues - 40% ✔VAT to GNP - 4% ✔conso public sector financial position to GNP - 0.9% ✅cost ratio limit: COS to gross sales or receipts ≤ 55% |
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