ntor earned a gross compensation income of Php1,000,000 for the whole e is marri
ID: 2572312 • Letter: N
Question
ntor earned a gross compensation income of Php1,000,000 for the whole e is married with six children. Assuming that he is the one year of 2012. H claiming (not his wife) the tax exemption for the children, how much total income tax was withheld from his salary for the year 2012? 2. Joe is 18 years old and is dependent on his sister Mary for financial support. If Mary is the head of the family, how much tax should Mary pay the government (BIR) if she is earning a gross annual compensation income of Php450,000? Dennis purchased a spare part from RAPIDE for his auto repair shop. The spare part cost Dennis Php650 VAT inclusive. How much VAT did Dennis absorb? 3. From #3 auto repair shop's point of view, should the VAT be declared as an input or output VAT? 4. Mario is single and earns a monthly gross income of Php20,000 from his first job. How much annual income tax should Mario pay to the govermment? 5.Explanation / Answer
1. Tax rate for Income of Php 500000 and above that is given in question is :
= Php 125,000+32% of excess over Php 500,0000 in 2000 onward
= Php 125,000+Php160,000
= Php 285000
The tax withheld from his salary was Php 285,000
2. Gross Income - Php 450,000
Less: Deduction for head of the family (50000)
Less: Additional Exemption for each qualified dependant (25000)
Taxable Income Php 375000
Payable to government : Php 50000+ 30% of the excess of Php 250000
= Php 50000+75000
= Php 125000
3. VAT Rate for Sapre parts in Philippines is 12%
The spare parts costs Php 650 Inclusive VAT
Costs without VAT is Rs ( 650*100/112)= 580
VAT Absorb By Dennis is Php 70
4. The auto repair shop should declared the VAT as Output VAT because it is considered as sale for the auto repair shop.
5. Annual Gross Income Of Mario = Php 20000*12=Php 240000
Then tax payable is calculated as, 22500+ 25% of excess of 140000
= 22500+ 35000
=Php 57500
Income Tax should pay to Government By Mario is Php 57500 .
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