16937nam a22002177a 4500 250613b |||||||| |||| 00| 0 eng d 9786218271180 SC Fil./336.24/G562/2024 Gloria, Ramelo C. 12749 Simplified income taxation : included tax reform for acceleration and inclusion (TRAIN) law Corp. recovery and tax incentives for enterprises (CREATE) act. / by Ramelo G. Gloria and Aldin L. Pantaleon. Quezon City : Infopage Educational Service, Inc., c2024. xxiii, 320 pages : illustrations ; 25 cm. include references. Nature of Taxation.— Inherent Powers of the State.— Basis of the Power of Taxation.— Scope of the Power of Taxation.— Power of Taxation vs. Other Powers of the State.— Power of Taxation vs. Power of Eminent Domain.— Power of Taxation Distinguished from Police Power.— Limitations of the Power of Taxation.— Basic Principles of a Sound Tax System.— Situs or Place of Taxation.— Exemptions to the Rule against Delegation of Taxing Power.— Requisites for a Valid Classification.— Exemption from Taxation.— Forms of Escape from Taxation.— Tax Evasion as Distinguished from Tax-avoidance.— Double Taxation, defined.— Definition of Tax.— Essential Elements and Characteristics of Tax.— Classification of Kinds of Taxes.— Tax compared to Other Terms and Imposts.— Tax Laws.— Sources of Tax Laws.— Nature of Tax Laws.— Taxes Imposed under the National Internal Code.— Powers and Duties of the Bureau of Internal Revenue.— Powers of the Commission of Internal Revenue (CIR).— Real Property Values to be used for Computing any Internal Revenue Tax.— Authority of the Commissioner to Accredit and Register Tax Agents.— Authority of the Commissioner to Delegate Powers.— Powers of the Commissioner that cannot be delegated.— Nature of Income.— Definition of Income for Income Tax Purposes.— Income Distinguished from Capital, Receipt, and Revenue.— Sources of Income.— Taxable Income.— Tax on Income.— Purposes of Income Tax.— Basis in Imposing Income Tax.— Classification of Income tax in the Philippines.— Basis of Taxability of Income.— Definition of Income Taxpayers.— Classification of Income Tax in the Philippines.— Basis of Taxability of Income.— Definition of Income Taxpayers.— Classification of Taxpayers.— Kinds of Individual Taxpayers.— Income Subject Tax under the National Internal Revenue.—General Principles of Income Taxation in the Philippines.—System of Income Taxation.— Global System of Income Taxation.— Schedular System of Income Taxation.— Schedular Treatment Distinguished from Global Treatment Taxation.—Types of Income Taxes.— Tax Base of Income Tax Purposes.— Items of Income Subject to Income Tax.— Definitions, Forms and Measurement of Income for Income Tax Purposes.— Merchandising, Manufacturing or Mining Business.— Income from Long-term Contracts.— Gross Income from Farming.— Definition of Farm and Farmers.— Methods of Reporting Gross Income from Farming.— Accrual Basis of Reporting Income.— Crop Basis of Reporting.— Measurement of Gains or Loss.— Measurement of Gains or Loss.— Kinds of Dividends.— Tax Basis or Costs of Nontaxable Dividend.— Taxability of Individual’s Income.— Individuals considered Citizens of the Philippines.— Nonresident Citizens.— Overseas contract workers.— Resident Aliens.— Nonresident aliens engaged in trade or business in the Philippines.— Nonresident aliens not engaged in trade or business in the Philippines.— Situs of income for Tax Purposes.— Importance of knowing the Basis of Taxability of Individual Taxpayers.— Taxable Income of Individual Taxpayers.— Final Tax on Gross Income of Some Individuals.— Passive Income of Individuals.— Basic Features of Passive Income.— Rates of Passive Income- In General.— Items not considered passive income subject to final tax.— Capital Gains of Individual Subject to Final Tax.— Exemptions from Income Tax of Minimum Wage Earners.— Exempted Compensation Income under R.A.9504.— Definition of Corporation.— Taxability of Corporation’s Income.— Classification of Corporation under the NIRC.— Domestic Corporation.— Classification of Domestic Corporations of tax purposes.— Foreign Corporations.— Classification of Foreign Corporations for tax purposes.— Importance of Knowing the Classification of Corporations.— General Rules in the Computation of Income Tax of Corporations.— Taxable Income of Corporations.— Special Kinds of Corporate Taxpayers.— Focus Notes on Domestic Corporations.— Notes on Resident Foreign Corporations.— Passive Income of Corporate Taxpayers.— Nature of Passive income.— Items of Passive Income.— Final Tax on certain Income of Nonresident Foreign Corporations.— Minimum Corporate Income Tax (MCIT)*.— Important Features of MCIT.— Corporation’s Income Tax Return.— Quarterly Returns.— Adjusted or Final Return.— Payment of Income Tax.— Definition of Gross Income.— Items of Gross Income.— Exclusions from Gross Income .— Objectives of Gross Income Computation.— Income Tax Applicable to Taxable Income.— Basic Guides in Gross Income Composition Determination.— Discussion of Items Included in Gross Income.— Compensation for Services.— Compensation Income.— Requisites for taxability of Compensation Income.— Kinds of Compensation Income.— Forms of Compensation.— Compensation Paid in Cash.— Fringe Benefits.— Meals Furnished or Subsidized by the Employer.— Application of the “Convenience of the Employer Rule”.— Living Quarters.— Premium on Life Insurance.— Travelling, Representation and Other Allowances.— Personnel Economic Relief Allowance (PERA).— Salaries and Allowances during Leaves of Absence.— Separation Pay.— Fees.— Dismissal Payment.— Payment made by a General Professional Partnership to a partner. – Gross Income from business or Practice of Profession. – Merchandising, Manufacturing or Mining Business. – Income from Long-term Contracts. – Gains Derived from Dealings in Property. – Ordinary Asset vs. Capital Assets. – Rules in Capital Transactions. – For I. Individuals. – For Corporations. – Transactions Deemed Sale of Capital Assets. – Costs and Expenses of Acquisition and Disposition of Capital Assets. – Exemptions from Capital Gains Tax. – Interest Income. – Royalties. – Dividends. – Kinds of Dividends. – Prizes and Winnings. – Partner’s Share from the profit of a General Professional Partnership. – Income from Other Sources. – Recovery from Damages. – Recovery from Bad Debts Previously Deducted. – Rules of Bad Debts Recovery. – Refund of Tax. – Rules on Refunds of Taxes Previously Deducted. – Forgiveness of Indebtedness. – Discussion of Exclusion from Gross Income. – Nature of Extinctions. – Exclusion under the Tax Codes. – Life Insurance. – Amount Received by Insured As Return of Premium. – Gifts, Bequest, and Devices. – Compensation for Inquiries or Sickness. – Income Exempt under Treaty. – Retirement Benefits, Pensions, Gratuities, etc. – Miscellaneous Items. — Definition of Fringe Benefits. – Coverage of Fringe Benefits Taxations. – Rate of Tax Base. – Grossed-Up Monetary Value. – Valuation of Fringe Benefits monetary value. – Filing of Return and Payment of Tax. – Taxable Fringe Benefits. – Fringe Benefits Not Taxable. – Valuation Guidelines for determination of Fringe. – Benefits Monetary Values. – Housing Benefits which are not Taxable. – Expense Account. – Motor Vehicle of any Kind. – Household Expenses. – Interest on Loan and Less than Market Rate. – Social and Athletics Club Fees. – Expenses for Foreign Travel. – Fringe benefits of foreign travel which are not taxable. – Holiday and Vacation Expenses. – Educational Assistance. – Cost of Insurance – Tax Accounting for Fringe Benefit Expense and Fringe Benefits Tax. – Factors Consider in the Computation of Fringe Benefits Tax. – Fringe Benefits not subject to Fringe Benefits Tax. – “De, minimis” Benefits. – Taxations of fringe Benefits of Nonresident Alien not engaged in trade or business in the Philippines. – Definition of Installment Method. – Rules on Installment Basis of Reporting Income. – Important Terms to remember under the Installment Method. – Formula to Compute Income to be Reported on Installment Basis. – Advantage of the Installment Method. – Sale of Real Property (Held as Capital asset). – Installment payment of Final Tax on Sale of Real Property. – Return and Payment of Final Tax. – Sale –of Personal Property on Installment Plan. – Repossessions of Property under Installment Sale. – Sale of Real Estate in Lots. – Exemptions from Withholding Tax on Compensation. – Computations of Wages. – Withholding of Wages. – Learning exercise. – Definitions of Deductions. – Nature and Concepts of Deductions. – General Principles Governing Deductions. – Kinds of Deductions under the Tax Code. – Deductions Allowed to Specific Taxpayers. – Deductions Compared to Exemptions. – Optional Standard Deductions. – Business Expenses. – Meaning of Ordinary and Necessary Expenses for Tax Purposes. – Kinds of Business Expenses. – Compensation for personal services. – Travelling Expenses. – Rentals. – Entertainment, amusement and recreation. – Cost of Materials and Supplies. – Repairs. – Interest. – Taxes. – Losses. – Types of losses. – Ordinary losses. – Capital losses and Net Capital Loss Carry-over. – Net operating loss carry-over (NOLCO). – Wagering Losses. – Net Operating Loss of Mines other than Oil and Gas wells. – Bad Debts. – Requisites for deduction of Bad Debts. – Non-deductible bad debts. – Examples of Deductible of Bad Debts. – Depreciation. – Requisites for Deductions of Depreciation. – Provision for Depreciation Deduction. – Methods of Depreciation. – Adjustment of Depreciation. – Depletion. – Kinds of Depletion Allowance. – Taxpayers Allowed with Depletion Allowance. – Unique Features of Mining Entities Operations. – Charitable and Other Contributions. – Requisites for Deductibility. – Kinds of Charitable Contributions. – Contributions deductible in full. – Limitation on Deduction. – Research and Development. – Amount deductible. – Exclusion from research and development expenditures. – Employer’s Contribution to Pension Trust.— Requisites of Deductibility.— Non-deductible Expenses in the Tax Code.— Tax Credit for income tax paid to foreign countries.— Allowed Deductions for Fringe Benefits Given to Managerial or Supervisory Employees.— Optional Standard Deduction (OSD) Allowed to Individuals and Corporation in Computing their Taxable Income.— Persons Covered.— Persons not allowed to claim OSD.— Determination of the amount of OSD allowed to individual and corporate taxpayers.— Determination of the OSD for Partnerships and its other Implications for Income Tax Purposes.— Learning Exercises. – Other Taxpayers under the Tax Code. – Nature of Partnerships. –Essential Elements of a Partnership. – Classifications of General Partnerships for Tax Purposes. – Kinds of Exempt Partnerships. – Tax Liability of Partners in Exempt Partnerships. – Taxable Partnerships. – Tax Liability of Partners in Taxable Partnerships. – Share of a Partners in an Exempt Partnership’s Distributive Net Income. – Reporting of a Partner’s Share from Partnership’s Net Income. – Tax Liabilities of Partnerships Taxable as Corporations. – Partnership and Co-ownership. – Co-ownership for Income Tax Purposes. – Tax Liabilities of Co-owners in Exempt Co-ownership. – Undivided Inherited Property. – Imposition of Tax on Estates and Trust. – Definition of Terms. – Estate (inheritance). – Decedent. – Heirs. – Devisee. – Legatee. – Trustor or Grantor. – Trust. – Trustee. – Beneficiary. – Fiduciary. – Taxable Estates and Trusts. –Gross Income of Estates and Trusts. – Taxable Income of Estates and Trusts. – Trust Administered in a Foreign Country. – Computation of the Tax. – Taxation of Trust. – Parties to a Trust. – Classification of Trust. – Ordinary Trust. – Revocable Trust. -- Income for the Benefit of Grantor. -- Emplyoyee’s Trsut. -- Exemption of Employee’s Trust. -- Taxability of Income of Trust. -- Income of Trusts taxed to the Trustee. -- Income of Trusts taxed to the Beneficiaries. -- Income of Trusts taxed directly to the Grantor. -- Determination of the Tax. -- Taxable Income of Trusts. -- Gross Income of Trusts. -- Special Deductions of Trusts. ̶ Consolidated Income of Two or More Trusts. ̶ Formula to allocate consolidated tax to each trustee. -- Fibuciary Returns. -- Learning Exercises. -- Definition of Income Tax Returns. -- Exceptions to the Preceding General Rule. -- Filing of Return in Duplicate. -- Maximum Number of Pages. -- Where to file Return. -- When to file Return. -- Husband and Wife. -- Return of Parent to Include Income of Children. -- Persons under Disability. -- Signature Presumed Correct. -- Substituted filing of Income Tax Returns. -- BIR Forms, Annual Declaration and Quarterly. -- Income Tax for Individuals, Estates and Trusts. -- BIR Forms 1700. -- BIR Form 1701. -- BIR Form 1701Q. -- Date of Filing Returns. -- BIR Form 1701A. -- Self-Employment Income Defined. -- Corporation Returns. -- Taxable Years of Income. -- Declaration of Quarterly Corporate Income Tax. -- Final Adjustment returns of Corporations. -- Extension of Time to File Returns (Sec. 53). -- Returns of Receivers, Trustees in Bankruptcy or Assignees (Sec. 54). -- Returns of General Professional Partnerships (Sec. 55). -- Returns of Corporations Contemplating Dissolution or Reorganization (Sec. 52C). --BIR Form 1702-RT. -- Annual Income Tax Return For Corporation, Partnership and Other Non-Individual Taxpayer Subject Only to REGULAR Income Tax Rate. -- Filing Date. --Place of Filing. -- Capital Gains Tax Returns for Onerous Transfer to Real Property Classified as Capital Asset (both Taxable and Exempt). -- Return is filed using BIR Form 1706. -- Filing Date. -- Capital Gains Tax Returns for Onerous Transfer of Shares of Stocks Not Traded Through the Local Stock Exchange. -- Return is Filed using BIR Form 1707. -- Filing Date. -- BIR Form 1707-A. -- Filing Date. -- Return of Corporation Contemplating Dissolution or Reorganization. -- Return of Receivers, Trustee in Bankruptcy or Assignees. -- Returns of General Professional Partnerships. -- Payment and Assessment of Income Tax (Sec. 56). -- Installment Payment. -- Payment of Capital Gains Tax. -- Requirement for Registration of Document Transferring Real Property. -- Assessment and Payment of Deficiency Tax. -- Deficiency Income Tax. -- Additions or Increments to the Tax: Civil Penalties & Interest. -- Interest. -- Deficiency Interest. -- Failure to File Certain Information Returns. -- Failure of a Withholding Agent to Collect and Remit Tax. -- Failure of a Withholding Agent to refund Excess Withholding Tax. -- Withholding of Tax at Source. -- Returns and Payment of Taxes Withheld at Source (Sec. 58) -- Statement of Income Payments Made and Taxes Withheld. -- Annual Information Return. -- Income of Recipient. -- Registration with Register of Deeds. -- Tax on Profits Collectible from Owner or Other Persons. -- Assessment of Taxes. -- Collection of Taxes. -- Electronic Filing and Payment System (eFPS). -- Compliance Requirements. -- Keeping of Books of Accounts (Sec. 232-233). -- Language in which Books are to be Kept (Sec. 234). -- Preservation of Books and Accounts and Other Accounting Records. -- Registration of Requirements. -- Annual Registration Fee. -- Registration of Each Type of Internal Revenue Tax. -- Cancellation of Registration. -- Insurance of Receipts or Sales or Commercial Invoices. -- Organization and Function of the Bureau of Internal Revenue (Title 1, NIRC, as amended by R.A. 10963). -- Powers and Duties of the Bureau of Internal Revenue (Sec. 2). -- Chief Official of the Bureau of Internal Revenue (Sec. 3). -- Powers, Authorities of the Commissioner of the Bureau of Internal Revenue (BIR). -- Internal Revenue Districts. -- Revenue Regional Director )(Title 1, Sec. 10);. -- Duties of Revenue District Officers and Internal Revenue Officers (Sec. 11). -- Agents and Deputies for Collection of National Internal Revenue Taxes (Sec. 12). Income tax. 7564 Law. 4987 Labor laws and legislation. 9692 Pantaleon, Aldin L. 12750 author. ddc BK 9089 9089 0 0 ddc 0 0 FIL DSSC-STZ DSSC-STZ PROC 2025-06-13 0 Fil./336.24/G562/2024 B000555 2025-06-13 00:00:00 C.1 2025-06-13 BK 0 0 ddc 0 0 FIL DSSC-STZ DSSC-STZ PROC 2025-06-13 0 Fil./336.24/G562/2024 B000556 2025-06-13 00:00:00 C.2 2025-06-13 BK 0 0 ddc 0 0 FIL DSSC-STZ DSSC-STZ PROC 2025-06-13 0 Fil./336.24/G562/2024 B000557 2025-06-13 00:00:00 C.3 2025-06-13 BK 0 0 ddc 0 0 FIL DSSC-STZ DSSC-STZ PROC 2025-06-13 0 Fil./336.24/G562/2024 B000558 2025-06-13 00:00:00 C.4 2025-06-13 BK 0 0 ddc 0 0 FIL DSSC-STZ DSSC-STZ PROC 2025-06-13 0 Fil./336.24/G562/2024 B000559 2025-06-13 00:00:00 C.5 2025-06-13 BK