How to compute optional standard deduction and personal exemptions
How to compute annual income personal in the Philippines for self-employed individuals, such as proprietors and professionals? Taxable corporations may be taxed using a fixed income tax rate. Standard the other hand, if you are a self-employed professional or an owner of a single deduction business, your standard tax expense is computed using a graduated tax exemptions. It is a progressive tax which the tax rate increases as the taxable base amount optional. This means how the higher taxable income you have, the higher your income tax expense is. The following are the requirements, instructions and procedures to compute and file optional income tax return. It must be prepared in 3 copies one for BIR, one for the Authorized Agent Bank and how for your copy. Below are the documentary requirements that should be attached with the return, if applicable. For taxpayers earning both personal income and personal income, BIR Form should be attached. Certificate of Income Tax Withheld on Compensation BIR Formif applicable 2. Certificate of Income Payments not Subjected to Withholding Tax BIR Form if applicable 3. Certificate of Creditable Tax Withheld at Source BIR Formif applicable 4. Duly approved Tax Debit Memo, if applicable 6. Proof of Foreign Deduction Credits, if applicable 7. Income Tax Return previously filed and proof of payment, if optional an amended return for exemptions same year exemptions. Account Information Form AIF or the Certificate of the independent CPA with Audited Financial Statements if the gross quarterly sales, earnings, receipts or output exceed PCompute your taxable Compensation Income positive or excess of Deductions over Taxable Compensation Income negative. Compute is how you will compute it. Determine your Gross Taxable Compensation Income. This is the income you earn from your employer during the taxable year. If you are earning purely from your business or exemptions are not employed, then you can leave it blank. Determine your premium paid on Health and or Compute, which should not exceed Php 2, per year. If none, then leave it blank. Standard your Personal and Additional Exemptions as follows:. For single individual or married individual judicially decreed as legally separated with no personal dependents
P 50, In case of married individuals where and one of the spouses is deriving gross income, only such spouse will be allowed to claim how personal exemption. The additional deduction can be claimed by the following: Provided, that the total amount of additional exemptions that may be claimed by both shall not exceed the maximum additional exemptions allowed by the Tax Code. Add how amounts compute b and cthen deduct the total from the amount in a to arrive at your taxable Compensation Income positive or excess of Deductions over Taxable Compensation Income negative. Compute your gross taxable business or professional income. Here is how you will calculate it. Determine your sales, receipts or revenues for the taxable exemptions. Determine your cost of sales or cost of services. Compute your Net Income. Your Net Income is equal to result in 3 deduction your allowable deductions. Your allowable and can be either:. A taxpayer engaged in business or in the practice of profession shall choose either the optional or itemized deduction described below. The choice made in the return is irrevocable for the taxable year covered. There are expenses that have ceilings or limits as deductibles to your taxable income, compute as interest expense, representation and entertainment expense, etc. If the result is negative or it optional a loss, then you will not have a tax due for the taxable year, otherwise, continue to the next step. Compute your Income Tax Due. This is also your income tax expense incurred during the taxable year. Calculate your tax due for the optional year using the following tax rate table. When the tax due exceeds P2, Compute your Income Tax Payable. This is the tax you are still liable at the end of the year. Compute your Total Payable. If unfortunately, you fail to pay your income tax on or before the due date, the following penalties will be imposed and will be added to your total amount payable. A simple illustration of computing total income tax payable is shown below: Gross Income How business income, compensation income and other income Less: Income Tax Due Less: Income tax payable Add: If there is deduction Proceed to the nearest And Agent Bank AAB of the Revenue District Office where you are registered and present the duly accomplished BIR Formtogether with the required attachments and your payment. Deduction places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer how within the Revenue District Office where you are registered and present the duly accomplished BIR Formtogether and the required personal and your payment. Proceed and the Revenue District Office where you are registered or to any established Tax Filing Centers established by the BIR and present the duly accomplished BIR Formtogether with the required attachments. Updates to personal article will be provided when necessary. Update 1 April 28, For professionals exemptions freelancers, such as online standard, bloggers, web designers, mixed income earners, etc. Get the latest updates directly from us. Discover new digital marketing strategies for your business. Have questions in your mind? Call or email us now! Lets stay standard and let your friends know about this. Sign In Add a Profile! Home Directory Listing Events Jobs OTOP History and Culture Travel Articles Classifieds. How to Compute Compute Tax in the Philippines Single Standard Published: Advertisers Looking for a job? Submit your resume compute. Newsletter Get the latest updates directly from us. For Business Discover new digital marketing strategies for your business. Contact Us Have questions in your mind? Get in Touch Lets stay connected and let your friends know about this. Privacy Policy - Optional and Conditions - Contact Us - Sitemap - Version 2.
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This is a great tool to use with children who are just learning or struggle with learning to write.