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The Practice of Psychological Testing
There is an increase need of program evaluation. Therefore, there is an increase need of program evaluator. What are these programs? These programs are from educational, psychological, industrial, governments, companies, and other social action programs, procedures, products, performances, among others.Filling Out Application Forms
These are the following procedures that may help applicants during job hiring. This may be the difference of having a job or not.Job Hunting 101
College is almost over and it's now time to face the next chapter of your life - JOB HUNTING!Management Accounting Services
Learn how to understand the meaning of Management Accounting Services first hand.The Simple Machines of All Kinds...
This are some of the types of simple machines that is used in everyday life.
What Causes Cloud Formation?
Everyday our
atmosphere changes. It happens so often that beautiful cloud formations are
often missed. What causes these clouds we see above us? The water cycle and
Cloud formations and types depend on each other for survival. Without clouds in
our atmosphere, life as we know it on Earth would not be the same.
Catholic Social Teaching
CST covers all spheres of life – the economic, political, personal and spiritual. With human dignity at its centre, a holistic approach to development, founded on the principles of CST, is what Pope Paul VI called ‘authentic development’.
The Summary - The Branches of Philippine Government
It is simplified and easily understandable. Here are the different branches and their functions.Reproductive System - Definition of Terms
Here are the definitions that you need to know.Growing Concern - Dilemma of College Students
Have someone feel the wrath of the professor's extreme complications regarding the examinations, whether it may be midterms, finals or just a long, unexpected exam or quiz? This article is intended to you.An Example of A Case Study...
This is only an example made by some students. There are no further actions required...These is a study about Korean coffee shops...
Sarah Kay – Hands
"A literary piece worth reading."Research on Gastropods
In this in-depth blog (thesis) shows the very detail of Gastropods as a species existing on this planet.Business Planning: Tactics VS. Strategy
Tactical Planning
Tactical planning is such an important
part of a company's strategic planning process that management consulting companies
are often hired to assist companies in preparing tactical plans. A company
usually begins with its objectives and then develops strategies for how to
carry out their objectives. Tactical plans are the specific action steps
necessary to get results.
Tactical Plan Basics
Tactical plans are sometimes called
short-term action plans because they breakdown bigger-picture goals and
strategies into narrower, actionable tasks. The key to a well-developed
tactical plan is having specifically stated actions assigned to particular
employees with specific deadlines. Bold objectives and thoughtful strategies
produce nothing if no steps are taken to put them into action. The goals and
strategies give vision and the actions make the company plans real.
Tactical plans should typically focus
on a handful of core company goals; otherwise, employee activities become too
fragmented and it is hard for employees to understand how their activities
ultimately tie into goals. Adorian Corporation advises clients to develop tactical
plans with three to five strong goals in mind. "Increase sales by 20
percent within 12 months" is an example of a specific, measurable goal. A
strategy of training employees on suggestion selling may help. A specific
tactic is requiring all sales employees to recommend a certain add-on product
or "service Y" to each customer buying "product X."
Strategies Vs. Tactics
One of the biggest challenges in
tactical planning is knowing the difference between a strategy and tactic.
These are sometimes confused. A strategy is essentially a framework or plan,
but it provides no tangible results on its own. Tactics are steps for
implementing your strategies and are actionable and have a purpose and a
measurable result. If you cannot see or discern the result of the action or
task it is likely not a tactic.
 |
| A diagram of tactics and strategy. |
Operational Planning
The term "Operations" is a
small word that refers to your total business process. The three main types of
operations planning are startup operations creation, ongoing operations planning
and business continuity operations planning. A good way to start your
operations plan is to visualize in detail the procedures involved in
development of your product, purchase of raw materials, manufacturing process,
warehousing, marketing, sales process, purchase transaction, order fulfillment,
accounting, human resources and cash management. This is the scope of your
operations. Create a flow chart to identify how those various functions
interact.
Startup
Writing a business plan requires that
you give some thought to how your business will operate, including how you will
create your product or service, how you will market it, sell it, deliver it,
and how you will manage the administrative tasks involved. Create a detailed
roadmap of how your company will move through this process and expand it to
facilitate growth of your business. As a startup you should give consideration
to installing an enterprise resource planning, or ERP, software system that
will link your supply chain management system, inventory records, sales
transactions, accounting software and human resource records. This will make it
easier to view all functions of your organization in the form of condensed
daily reports and will provide comprehensive historical reports that will assist
in operations planning.
Ongoing
Use your ERP system to identify
blockages in the operations flow of your company or, if you do not have such a
system installed, meet regularly with your department heads to review how each
department works synergistically with other departments and how that synergy
translates into smooth efficient operations throughout your enterprise.
Communications and cooperation between departments are key to operational
efficiency. Plan for variable business scenarios and evaluate the response
capabilities of your administrative staff to production, sales and delivery
needs. Where operations usually break down is in the order processing and
accounting functions when the business flow overwhelms the department
capabilities.
Continuity
An important part of your operations
plan is contingency planning, which deals with disruptions from natural
disasters, emergency or crisis situations that include fires and electrical
outages, terrorist attacks and the death or disability of key personnel. This
is an operational or business continuity plan and should include a list of
procedures to be taken under various crisis scenarios, contact information for
all department managers and key personnel, contact information for outside
emergency assistance services and all insurance and banking information.
Include several people who will function as coordinators with full authority to
make decisions.
Benefits
Detailed organizational planning
projects often serve to reveal inefficiencies that have developed as your
company has grown. They also act as catalyst to new business development ideas.
Regular attention to operations planning assures efficiency of your operations
and will enable a quick return to profitable business activities in the event
of a natural disaster or crisis situation.
Considerations
Involve all managers and key personnel
in your operations plan project and set up an employee suggestion system. The
main goal of your planning is to identify realistic workable flow of procedures
and processes throughout your company, and often your low level employees are
the best source of information about how well your operations really work.
 |
| A perfect example of operational planning. |
The simplified History of Psychology
(This was derived from Wikipedia, with in-depth details omitted)
Public Relations: A Management Function
What Is Public Relations? - Inform more about the very important matter beyond social spheres.
Group Leader Characteristics
Personal Characteristics of the Effective
Group Leader (Corey & Corey, 1997)
1.
Courage – it does not mean
being without fears but rather it means acknowledging fears and dealing with
them.
2.
Willingness to model – leaders
teach by example
3.
Presence – being emotionally
present is extremely important
4.
Goodwill and Caring – A sincere
interest in the welfare of others is essential
5.
Belief in group process –
believe in what you are doing and the trust the therapeutic forces within a
group
6.
Openness – be open to yourself,
open to members of the group, open to new experiences, and open to lifestyles
and values that differ from your own
7.
Becoming aware of your own
culture – knowing how your own culture influences your decisions and daily
behavior provides a frame of reference for understanding the world view of
those who differ from you.
8.
Non defensiveness in coping
with attacks – Dealing frankly with criticism is related to openness
9.
Personal power – does not
entail domination of members or manipulation of them toward the leader’s end.
Rather it is the dynamic and vital characteristics of leaders who know who they
are and what they want. This power involves a certain confidence in the self
and certain charisma.
10.
Stamina – Group leading can be
taxing and draining as well as exciting and energizing. Therefore you need
physical and psychological stamina and the ability to withstand pressure to
remain vitalized throughout the course of a group
11.
Willingness to seek new
experiences – personhood is largely determined by the variety of life
experiences
12.
Self-awareness – A central
characteristic for any therapeutic person is an awareness of self, including
one’s identity, cultural perspective, goals, motivations, needs, limitations,
strengths, values, feelings and problems
13.
Sense of humor – Although
therapy is serious business there are many humorous dimensions of the human
condition.
14.
Inventiveness – The capacity to
be spontaneously creative, approaching each group with fresh ideas, is a most
important characteristic.
15.
Personal dedication and
commitment – Being a professional who makes a difference involves having ideals
that provide meaning and direction in your life. It also involves humility
which means being open to feedback and ideas and being willing to explore one’s
self.
Leadership Characteristics (What makes and
effective leader?) (Masson, et. Al)
1.
Experience with individuals
2.
Experience with groups
3.
Planning and organizational
skills
4.
Knowledge of the topic
5.
A good understanding of basic
human conflicts and dilemmas
6.
A good understanding of
counseling theory
The Count of Monte Cristo (Reflect)
The story of The Count of Monte
Cristo is about between the rich and the poor people can or cannot do when it
comes to influence and power, and the revenge of Edmond Dantes, the main character.
Chemical Compounds from Different Products.
The following is a series of products with respective chemical compounds.
Non-current Liabilities - Intro to Bonds (Financial Accounting)
The topic focuses on a financial instrument, formal in nature, that intends to borrow money from the public through this thing - with ensured interest in return.
Post-Employment Benefits (Financial Accounting)
The firm needs it. The employees as well needs it. Overall, both are benefiting on it, with an organization paying for services render by an employee.
This page will talk about retirement benefits and how does it measure.
TAXATION SIMPLIFIED (PHILIPPINE CONTEXT)
For those who lived in the Philippines, this is for you to know.
We are summarizing the point that it is pertain by the Bureau of Internal Revenue at their website at http://www.bir.gov.ph
And the main topic was all about calculating income tax in all cases...
First, there was a tax rate of different proportions...
Tax Rate
A. For Individuals Earning Purely Compensation Income and Individuals Engaged in Business and Practice of Profession
Amount of Net Taxable Income
|
Rate
|
|
Over
|
But Not Over
|
|
P10,000
|
5%
|
|
P10,000
|
P30,000
|
P500 + 10% of the Excess over P10,000
|
P30,000
|
P70,000
|
P2,500 + 15% of the Excess over P30,000
|
P70,000
|
P140,000
|
P8,500 + 20% of the Excess over P70,000
|
P140,000
|
P250,000
|
P22,500 + 25% of the Excess over P140,000
|
P250,000
|
P500,000
|
P50,000 + 30% of the Excess over P250,000
|
P500,000
|
P125,000 + 32% of the Excess over P500,000 in 2000 and onward
|
|
Note: When the tax due exceeds
P2,000.00, the taxpayer may elect to pay in two equal installments, the
first installment to be paid at the time the return is filed and the
second installment 15 of the same year at on or before July the
Authorized Agent Bank (AAB) within the jurisdiction of the Revenue
District Office (RDO) where the taxpayer is registered.
Tax Rate
|
Taxable Base
|
|
1. Domestic Corporations:
|
||
a. In General
|
30% (effective Jan. 1, 2009)
|
Net taxable income from all sources
|
b. Minimum Corporate Income Tax*
|
2%
|
Gross Income
|
c. Improperly Accumulated Earnings
|
10%
|
Improperly Accumulated Taxable Income
|
2. Proprietary Educational Institution
|
10%
|
Net taxable income provided that the gross income from unrelated
trade, business or other activity does not exceed 50% of the total gross
income
|
3. Non-stock, Non-profit Hospitals
|
10%
|
Net taxable income provided that the gross income from unrelated
trade, business or other activity does not exceed 50% of the total gross
income
|
4. GOCC, Agencies & Instrumentalities
|
||
a. In General
|
30%
|
Net taxable income from all sources
|
b. Minimum Corporate Income Tax*
|
2%
|
Gross Income
|
c. Improperly Accumulated Earnings
|
10%
|
Improperly Accumulated Taxable Income
|
5. National Gov't. & LGUs
|
||
a. In General
|
30%
|
Net taxable income from all sources
|
b. Minimum Corporate Income Tax*
|
2%
|
Gross Income
|
c. Improperly Accumulated Earnings
|
10%
|
Improperly Accumulated Taxable Income
|
6. Taxable Partnerships
|
||
a. In General
|
30%
|
Net taxable income from all sources
|
b. Minimum Corporate Income Tax*
|
2%
|
Gross Income
|
c. Improperly Accumulated Earnings
|
10%
|
Improperly Accumulated Taxable Income
|
7. Exempt Corporation
|
||
a. On Exempt Activities
|
0%
|
|
b. On Taxable Activities
|
30%
|
Net taxable income from all sources
|
8. General Professional Partnerships
|
0%
|
|
9. Corporation covered by Special Laws
|
Rate specified under the respective special laws
|
|
10. International Carriers
|
2.5%
|
Gross Philippine Billings
|
11. Regional Operating Head
|
10%
|
Taxable Income
|
12. Offshore Banking Units (OBUs)
|
10%
|
Gross Taxable Income On Foreign Currency Transaction
|
30%
|
On Taxable Income other than Foreign Currency Transaction
|
|
13. Foreign Currency Deposit Units (FCDU)
|
10%
|
Gross Taxable Income On Foreign Currency Transaction
|
30%
|
On Taxable Income other than Foreign Currency Transaction
|
*Beginning on the 4th year immediately
following the year in which such corporation commenced its business
operations, when the minimum corporate income tax is greater than the
tax computed using the normal income tax.
Passive Income
|
|
1. Interest from currency deposits, trust funds and deposit substitutes
|
20%
|
2. Royalties (on books as well as literary & musical composition)
|
10%
|
- In general
|
20%
|
3. Prizes (P10,000 or less )
|
5%
|
- In excess of P10,000
|
20%
|
4. Winnings (except from PCSO and lotto)
|
20%
|
5. Interest Income of Foreign Currency Deposit
|
7.5%
|
6. Cash and Property Dividends
|
|
- To individuals from Domestic Corporations
|
10 %
|
- To Domestic Corporations from Another Domestic Corporations
|
0%
|
7. On capital gains presumed to have been realized from sale, exchange or other disposition of real property (capital asset)
|
6%
|
8. On capital gains for shares of stock not traded in the stock exchange
|
|
- Not over P100,000
|
5%
|
- Any amount in excess of P100,000
|
10%
|
9. Interest Income from long-term deposit or investment in the form
of savings, common or individual trust funds, deposit substitutes,
investment management accounts and other investments evidenced by
certificates
Upon pretermination before the fifth year , there should be imposed
on the entire income from the proceeds of the long-term deposit based
on the remaining maturity thereof:
Holding Period
|
Exempt
|
- Four (4) years to less than five (5) years
|
5%
|
- Three (3) years to less than four (4) years
|
12%
|
- Less than three (3) years
|
20%
|
B. For Non-Resident Aliens Engaged in Trade or Business
1. Interest from currency deposits, trust funds and deposit substitutes
|
20%
|
2. Interest Income from long-term deposit or investment in the form
of savings, common or individual trust funds, deposit substitutes,
investment management accounts and other investments evidenced by
certificatesUpon pretermination before the fifth year, there should be
imposed on the entire income from the proceeds of the long-term deposit
based on the remaining maturity thereof:Holding Period:
|
Exempt
|
-Four (4) years to less than five (5) years
|
5%
|
-Three (3) years to less than four (4) years
|
12%
|
-Less than three (3) years
|
20%
|
3. On capital gains presumed to have been realized from the sale, exchange or other disposition of real property
|
6%
|
4. On capital gains for shares of stock not traded in the Stock Exchange
|
|
- Not over P100,000
|
5%
|
- Any amount in excess of P100,000
|
10%
|
C) For Non-Resident Aliens Not Engaged in Trade or Business
1. On the gross amount of income derived from all sources within the Philippines
|
25%
|
2. On capital gains presumed to have been realized from the exchange or other disposition of real property located in the Phils.
|
6%
|
3. On capital gains for shares of stock not traded in the Stock Exchange
|
|
- Not Over P100,000
|
5%
|
- Any amount in excess of P100,000
|
10%
|
D) On the gross income in the
Philippines of Aliens Employed by Regional Headquarters (RHQ) or Area
Headquarters and Regional Operating Headquarters (ROH), Offshore Banking
Units (OBUs), Petroleum Service Contractor and Subcontractor
On the gross income in the Philippines
of Aliens Employed by Regional Headquarters (RHQ) or Area Headquarters
and Regional Operating Headquarters (ROH), Offshore Banking Units
(OBUs), Petroleum Service Contractor and Subcontractor
|
15%
|
E) General Professional Partnerships
General Professional Partnerships
|
0%
|
F) Domestic Corporations
1) a. In General – on net taxable income
|
30%
|
b. Minimum Corporate Income Tax – on gross income
|
2%
|
c. Improperly Accumulated Earnings – on improperly accumulated taxable income
|
10%
|
2) Proprietary Educational Institution and Non-profit Hospitals
|
10%
|
- In general (on net taxable income)
|
10%
|
- If the gross income from unrelated trade, business or other activity exceeds 50% of the total gross income from all sources
|
30%
|
4) GOCC, Agencies & Instrumentalities
|
|
a. In General - on net taxable income
|
30%
|
b. Minimum Corporate Income Tax – on gross income
|
2%
|
c. Improperly Accumulated Earnings – on improperly accumulated taxable income
|
10%
|
5) Taxable Partnerships
|
|
a. In General – on net taxable income
|
30%
|
b. Minimum Corporate Income Tax – on gross income
|
2%
|
c. Improperly Accumulated Earnings – on improperly accumulated taxable income
|
10%
|
6) Exempt Corporation
|
|
a. On Exempt Activities
|
0%
|
b. On Taxable Activities
|
30%
|
8) Corporation covered by Special Laws
|
Rate specified under the respective special laws
|
G) Resident Foreign Corporation
1) a. In General – on net taxable income
|
30%
|
b. Minimum Corporate Income Tax – on gross income
|
2%
|
c. Improperly Accumulated Earnings – on improperly accumulated taxable income
|
10%
|
2) International Carriers – on gross Philippine billings
|
2.50%
|
3) Regional Operating Headquarters on gross income
|
10%
|
4) Corporation Covered by Special Laws
|
Rate specified under the respective special laws
|
5) Offshore Banking Units (OBUs) on gross income
|
10%
|
6) Foreign Currency Deposit Units (FCDU) on gross income
|
10%
|
Related: RR No. 4-95, RR No. 4-96, RR No. 5-97, RR No. 1-98, RA 9337, RR 14-2002, RR 12-2007
Reference: Sections 23-59, 67-73 and 74-77 of the National Internal Revenue Code
FAQs - Frequently Asked Questions
1) What is income?
Income means all wealth, which flows into the taxpayer other than as a mere return of capital.
2) What is Taxable Income?
Taxable income means the pertinent items
of gross income specified in the Tax Code as amended, less the
deductions and/or personal and additional exemptions, if any, authorized
for such types of income, by the Tax Code or other special laws.
3) What is Gross Income?
Gross income means all income derived from whatever source.
4) What comprises gross income?
Gross income includes, but is not limited to the following:
-
- Gross income derived from the conduct of trade or business or the exercise of profession
- Gains derived from dealings in property
- Interest
- Rents
- Royalties
- Dividends
- Annuities
- Prizes and winnings
- Pensions
- Partner's distributive share from the net income of the general professional partnerships
5) What are some of the exclusions from gross income?
-
- Amount received by insured as return of premium
- Gifts, bequests and devises
- Compensation for injuries or sickness
- Income exempt under treaty
- Retirement benefits, pensions, gratuities, etc.
- Miscellaneous items
-
-- income derived by the government or its political subdivision
-- prizes and awards in sport competition
-- prizes and awards which met the conditions set in the Tax Code
-- 13th month pay and other benefits
-- GSIS, SSS, Medicare and other contributions
-- gain from the sale of bonds, debentures or other certificate of indebtedness
-- gain from redemption of shares in mutual fund
-
6) What are the allowable deductions from gross income?
Except for taxpayers earning
compensation income arising from personal services rendered under an
employer-employee relationships where the only deduction provided that
the gross family income does not exceed P250,000 per family is the
premium payment on health and/or hospitalization insurance, a taxpayer
may opt to avail any of the following allowable deductions from gross
income:
a)Optional Standard Deduction - an amount
not exceeding 40% of the net sales for individuals and gross income for
corporations; or
b) Itemized Deductions which include the following:
-
- Interest
- Taxes
- Losses
- Bad Debts
- Depreciation
- Depletion of Oil and Gas Wells and Mines
- Charitable Contributions and Other Contributions
- Research and Development
- Pension Trusts
In addition, individuals who are either
earning compensation income, engaged in business or deriving income from
the practice of profession are entitled to personal and additional
exemptions as follows:
Personal Exemptions:
For single individual
or married individual judicially decreed as legally separated with no
qualified dependents………………………………………P 50,000.00
For head of family……………………………P 50,000.00
For each married individual *…………P 50,000.00
Note: In case of
married individuals where only one of the spouses is deriving gross
income, only such spouse will be allowed to claim the personal
exemption.
Additional Exemptions:
The additional exemption can be claimed by the following:
-
- The spouse who has custody of the child or children in case of legally separated spouses. 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.
- The individuals considered as Head of the Family supporting a qualified dependent
The maximum amount of P 2,400 premium payments on health and/or hospitalization insurance can be claimed if:
-
- For married individuals, the spouse claiming the additional exemptions for the qualified dependents shall be entitled to this deduction
7) Who are required to file the Income Tax returns?
-
- Resident citizens receiving income from sources within or outside the Philippines
-
-- employees deriving purely compensation income regardless of the amount, whether from a single or several employers during the calendar year, the income tax of which has not been withheld correctly (i.e. tax due is not equal to the tax withheld) resulting to collectible or refundable return
-- self-employed individuals receiving income from the conduct of trade or business and/or practice of profession
-- individuals deriving mixed income, i.e., compensation income and income from the conduct of trade or business and/or practice of profession
-- individuals deriving other non-business, non-professional related income in addition to compensation income not otherwise subject to a final tax
-- individuals receiving purely compensation income from a single employer, although the income of which has been correctly withheld, but whose spouse is not entitled to substituted filing
-- marginal income earners
-
- Aliens, whether resident or not, receiving income from sources within the Philippines
- Corporations no matter how created or organized including partnerships
-
-- foreign corporations receiving income from sources within the Philippines
-- taxable partnerships
8) Who are not required to file Income Tax returns?
a. An individual who is a minimum wage earnerb. An individual whose gross income does not exceed his total personal and additional exemptions
c. An individual whose compensation income derived from one employer does not exceed P 60,000 and the income tax on which has been correctly withheld
d. An individual whose income has been subjected to final withholding tax (alien employee as well as Filipino employee occupying the same position as that of the alien employee of regional headquarters and regional operating headquarters of multinational companies, petroleum service contractors and sub-contractors and offshore-banking units, non-resident aliens not engaged in trade or business)
e. Those who are qualified under “substituted filing”. However, substituted filing applies only if all of the following requirements are present :
- - the employee received purely compensation income (regardless of amount) during the taxable year
- - the employee received the income from only one employer in the Philippines during the taxable year
- - the amount of tax due from the employee at the end of the year equals the amount of tax withheld by the employer
- - the employee’s spouse also complies with all 3 conditions stated above
- the employer files the annual information return (BIR Form No. 1604-CF)
- - the employer issues BIR Form No. 2316 (Oct 2002 ENCS version ) to each employee.
- Non-resident citizen who is:
a) A citizen of the
Philippines who establishes to the satisfaction of the Commissioner the
fact of his physical presence abroad with a definite intention to reside
therein
b) A citizen of the
Philippines who leaves the Philippines during the taxable year to reside
abroad, either as an immigrant or for employment on a permanent basis
c) A citizen of the
Philippines who works and derives income from abroad and whose
employment thereat requires him to be physically present abroad most of
the time during the taxable year
d) A citizen who has
been previously considered as a non-resident citizen and who arrives in
the Philippines at any time during the year to reside permanently in the
Philippines will likewise be treated as a non-resident citizen during
the taxable year in which he arrives in the Philippines, with respect to
his income derived from sources abroad until the date of his arrival in
the Philippines.
- Overseas Filipino Worker, including overseas seaman
An individual citizen
of the Philippines who is working and deriving income from abroad as an
overseas Filipino worker is taxable only on income from sources within
the Philippines; provided, that a seaman who is a citizen of the
Philippines and who receives compensation for services rendered abroad
as a member of the complement of a vessel engaged exclusively in
international trade will be treated as an overseas Filipino worker.
NOTE: A Filipino
employed as Philippine Embassy/Consulate service personnel of the
Philippine Embassy/consulate is not treated as a non-resident citizen,
hence his income is taxable.
10) What are the procedures in filing Income Tax returns (ITRs)?
File the return in
triplicate (two copies for the BIR and one copy for the taxpayer) with
the Authorized Agent Bank (AAB) of the place where taxpayer is
registered or required to be registered. In places where there are no
AABs, the return will be filed directly with the Revenue Collection
Officer or duly Authorized Treasurer of the city or municipality in
which such person has his legal residence or principal place of business
in the Philippines, or if there is none, filing of the return will be
at the Office of the Commissioner.
operation/transaction, including returns to be paid on 2nd installment and returns
paid through a Tax Debit Memo(TDM)
File the return with
the concerned Revenue District Office (RDO) where the taxpayer is
registered. However, "no payment" returns filed late shall be accepted
by the RDO but instead shall be filed with an Authorized Agent Bank
(AAB) or Collection Officer/Deputized Municipal Treasurer (in places
where there are no AABs), for payment of necessary penalties.
11) How is Income Tax payable of individuals (resident citizens and non-resident citizens)computed?
Gross Income
|
P ___________
|
Less: Allowable Deductions (Itemized or Optional)
|
___________
|
Net Income
|
P ___________
|
Less: Personal & Additional Exemptions
|
___________
|
Net Taxable Income
|
P ___________
|
Multiply by Tax Rate (5 to 32%)
|
____________
|
Income Tax Due: Tax withheld (per BIR From 2316/2304)
|
P ___________
|
Income tax payable
|
P____________
|
12) How is Income Tax paid?
-
-
-- 20% - Fees paid to directors who are not employees and 20% of professional fees paid to non-individuals
-- Other withholding tax rates
-
Income Tax Due
|
P ___________
|
Less: Withholding Tax
|
___________
|
Net Income Tax Due
|
P ___________
|
13) Is the Minimum Corporate Income Tax (MCIT) an addition to the regular or normal income tax?
- No, the MCIT is not an additional tax.
An MCIT of 2% of the gross income as of the end of taxable year (whether
calendar or fiscal year, depending on the accounting period employed)
is imposed on a corporation taxable under Title II of the Tax Code, as
amended, beginning on the 4th taxable year immediately following the
taxable year in which such corporation commenced its business operations
when the MCIT is greater than the regular income tax. The MCIT is
compared with the regular income tax, which is due from a corporation.
If the regular income is higher than the MCIT, then the corporation does
not pay the MCIT but the amount of the regular income tax.
Notwithstanding the above provision,
however, the computation and the payment of MCIT, shall likewise apply
at the time of filing the quarterly corporate income tax as prescribed
under Section 75 and Section 77 of the Tax Code, as amended. Thus, in
the computation of the tax due for the taxable quarter, if the computed
quarterly MCIT is higher than that quarterly normal income tax, the tax
due to be paid for such taxable quarter at the time of filing the
quarterly income tax return shall be the MCIT which is two percent (2%)
of the gross income as of the end of the taxable quarter. In the payment
of said quarterly MCIT, excess MCIT from the previous taxable year/s
shall not be allowed to be credited. Expanded withholding tax,
quarterly corporate income tax payments under the normal income tax, and
the MCIT paid in the previous taxable quarter/s are allowed to be
applied against the quarterly MCIT due.
14) Who are covered by MCIT?
- The MCIT covers domestic and resident
foreign corporations which are subject to the regular income tax. The
term “regular income tax” refers to the regular income tax rates under
the Tax Code. Thus, corporations which are subject to a special
corporate tax system do not fall within the coverage of the MCIT.
For corporations whose operations or
activities are partly covered by the regular income tax and partly
covered by the preferential rate under special law, the MCIT shall apply
on operations by the regular income tax rate. Newly established
corporations or firms which are on their first 3 years of operations are
not covered by the MCIT.
15) When does a corporation start to be covered by the MCIT?
- A corporation starts to be covered by
the MCIT on the 4th year of its business operations. The period of
reckoning which is the start of its business operations is the year when
the corporation was registered with the BIR. This rule will apply
regardless of whether the corporation is using the calendar year or
fiscal year as its taxable year.
16) When is the MCIT reported and paid? Is it quarterly?
- The MCIT is paid on an annual basis and quarterly basis. The rules are governed by Revenue Regulations No. 12-2007.
17) How is MCIT computed?
- The MCIT is 2% of the gross income of the corporation at the end of the year.
“Gross income” means gross sales less
sales returns, discounts and cost of goods sold. Passive income, which
have been subject to a final tax at source do not form part of gross
income for purposes of the MCIT.
Cost of goods sold includes all business
expenses directly incurred to produce the merchandise to bring them to
their present location and use.
For trading or merchandising concern,
cost of goods sold means the invoice cost of goods sold, plus import
duties, freight in transporting the goods to the place where the goods
are actually sold, including insurance while the goods are in transit.
For a manufacturing concern, cost of
goods manufactured and sold means all costs of production of finished
goods such as raw materials used, direct labor and manufacturing
overhead, freight cost, insurance premiums and other costs incurred to
bring the raw materials to the factory or warehouse.
For sale of services, gross income means
gross receipts less sales returns, allowances, discounts and cost of
services which cover all direct costs and expenses necessarily incurred
to provide the services required by the customers and clients including:
-
- Cost of facilities directly utilized in providing the service such as depreciation or rental of equipment used;
- Cost of supplies
Interest Expense is not included as part of cost of service, except in the case of banks and other financial institutions.
“Gross Receipts” means amounts actually
or constructively received during the taxable year. However, for
taxpayers employing the accrual basis of accounting, it means amounts
earned as gross income.
18) What is the carry forward provision under the MCIT?
- Any excess of the MCIT over the normal
income tax may be carried forward on an annual basis and be credited
against the normal income tax for 3 immediately succeeding taxable
years.
19) How would the MCIT be recorded for accounting purposes?
- Any amount paid as excess minimum
corporate income tax should be recorded in the corporation’s books as an
asset under account title “Deferred charges-MCIT”
20) How long can we amend our income tax return?
- There is no prescription period for
amending the return. When the taxpayer has been issued a Letter of
Authority, he can no longer amend the return.
21) Can a
benefactor of a senior citizen claim him/her as additional dependent in
addition to his/her 3 qualified dependent children at P 25,000 each?
- No, pursuant to Revenue Regulations 2-94, the benefactor of a senior citizen cannot claim the additional exemption.
22) What is a tax treaty?
- A tax treaty formally known as
convention or agreement for the avoidance of double taxation and the
prevention of fiscal evasion with respect to taxes on income (and on
capital) could be defined in terms of its purpose. First, a tax treaty
is intended to promote international trade and investment in several
ways, the most important of which is by allocating taxing jurisdiction
between the Contracting States so as to eliminate or mitigate double
taxation of income. Second, a tax treaty is intended to permit the
Contracting States to better enforce their domestic laws so as to reduce
tax evasion. These purposes are in fact incorporated in the title and
the preamble.
23) What are the effective Philippine tax treaties?
- The Philippines has thirty-seven (37)
effective tax treaties. The following tax treaties and their dates of
effectivity as as follows:
Effective Philippine Tax Treaties (as of June 2010)
Country
|
Date of Effectivity
|
Date and Venue of Signature
|
1. Australia
|
January 1, 1980
|
May 11, 1979, Manila, Philippines
|
2. Austria
|
January 1, 1983
|
April 4, 1981, Vienna, Austria
|
3. Bahrain
|
January 1, 2004
|
November 7, 2001, Manila, Philippines
|
4. Bangladesh
|
January 1, 2004
|
September 8, 1997, Manila, Philippines
|
5. Belgium
|
January 1, 1981
|
October 2, 1976, Manila, Philippines
|
6. Brazil
|
January 1, 1992
|
Sept. 29, 1983, Brasilia, Brazil
|
7. Canada
|
January 1, 1977
|
March 11, 1976, Manila, Philippines
|
8. China
|
January 1, 2002
|
November 18, 1999, Beijing, China
|
9. Czech
|
January 1, 2004
|
November 13, 2000, Manila, Philippines
|
10. Denmark (Renegotiated)
|
January 1, 1998
|
June 30, 1995, Copenhagen, Denmark
|
11. Finland
|
January 1, 1982
|
October 13, 1978, Manila, Philippines
|
12. France
|
January 1, 1978
|
January 9, 1976, Kingston, Jamaica
|
13. Germany
|
January 1, 1985
|
July 22, 1983, Manila, Philippines
|
14. Hungary
|
January 1, 1998
|
June 13, 1997, Budapest, Hungary
|
15. India
|
January 1, 1995
|
February 12, 1990, Manila, Philippines
|
16. Indonesia
|
January 1, 1983
|
June 18, 1981, Manila, Philippines
|
17. Israel
|
January 1, 1997
|
June 9, 1992, Manila, Philippines
|
18. Italy
|
January 1, 1990
|
December 5, 1980, Rome, Italy
|
19. Japan
|
January 1, 1981
|
February 13, 1980, Tokyo, Japan
|
20. Korea
|
January 1, 1987
|
February 21, 1984, Seoul, Korea
|
21. Malaysia
|
January 1, 1985
|
April 27, 1982, Manila, Philippines
|
22. Netherlands
|
January 1, 1992
|
March 9, 1989, Manila, Philippines
|
23. New Zealand
|
January 1, 1981
|
April 29, 1980, Manila, Philippines
|
24. Norway
|
January 1, 1998
|
July 9, 1987, Manila, Philippines
|
25. Pakistan
|
January 1, 1979
|
February 22, 1980, Manila, Philippines
|
26. Poland
|
January 1, 1998
|
September 9, 1992, Manila, Philippines
|
27. Romania
|
January 1, 1998
|
May 18, 1994, Bucharest, Romania
|
28. Russia
|
January 1, 1998
|
April 26, 1995, Manila, Philippines
|
29. Singapore
|
January 1, 1977
|
August 1, 1977, Manila, Philippines
|
30. Spain
|
January 1, 1994
|
March 14, 1989, Manila, Philippines
|
31. Sweden (Renegotiated)
|
January 1, 2004
|
June 24, 1998, Manila, Philippines
|
32. Switzerland
|
January 1, 2002
|
June 24, 1998, Manila, Philippines
|
33. Thailand
|
January 1, 1983
|
July 14, 1982, Manila, Philippines
|
34. United Arab Emirates
|
January 1, 2009
|
September 21, 2003, Dubai, UAE
|
35. United Kingdom of Great Britain and Northern Ireland
|
January 1, 1979
|
June 10, 1976, London, United Kingdom
|
36. United States of America
|
January 1, 1983
|
October 1, 1976, Manila, Philippines
|
37. Vietnam
|
January 1, 2004
|
November 14, 2001, Manila, Philippines
|
24) What office can we inquire about the said tax treaties?
- The International Tax Affairs Division (ITAD).
25) What taxes are covered by Philippine tax treaties?
- Income taxes imposed by the domestic
laws of the Contracting States, including substantially similar taxes
that may be imposed later, in addition to, or in place, are covered by
the tax treaties. In the Philippines, this is generally limited to Title
II (Tax on Income) of the National Internal Revenue Code of 1997, as
amended.
26) How is business income treated under our tax treaties?
- The business profits of a resident of a
Contracting State shall not be taxable in the Philippines unless that
enterprise of a resident of a Contracting State carries on business in
the Philippines through a permanent establishment.
27) What is the concept of permanent establishment (PE) as used in tax treaties?
- PE is defined as a fixed place of
business through which the business of the enterprise is wholly or
partly carried on. The concept of permanent establishment is used to
determine the rights of a Contracting State to tax the business profits
of enterprises of the other Contracting State. Under this concept,
profits of an enterprise of a Contracting State are not taxable by the
other Contracting State, unless the enterprise carries on business
through a permanent establishment situated in the other Contracting
State.
A list of places, circumstances, and
activities which constitute a permanent establishment is provided under
the different tax treaties which the Philippines has with other
countries.
28) What is the Most-Favored-Nation clause (MFN)?
- The appearance of the MFN clause in the
tax treaty means that a Contracting State will grant to a resident of
the other Contracting State the same lower rate of tax or exemption the
former has granted to a resident of a third State.
29) What is the tax treatment on immovable property?
- Income from an immovable property is
taxable in the Contracting State where the property is situated. This
term is generally defined under the domestic laws of the Contracting
States. However, this is further defined in the tax treaties.
30) How are capital gains taxed under our tax treaties?
- Gains from the alienation of immovable
property or movable property forming part of the business property of a
permanent establishment or pertaining to a fixed base are taxed in the
Philippines if the immovable property or permanent establishment or
fixed base is located here.
Source: http://www.bir.gov.ph/
VIDEO:
It is indeed that complicated, but it is indeed helpful...
Always remember, that in any country a person lives, pay a tribute, taxes to keep the country's bureaucracy running.
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