BIR, taxation basics......please share info

[Duard]

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@TS, pwede ko mo ride on sa imong thread? Sa mga tax experts, If I may ask unsay mga variables involve in computing your Annual Income Tax with the given assumption:

Source of Income: Business
Non-Vat
Optional Standard Deduction
Married with 2 qualified dependents

I hope naay makahatag ug inputs. Thanks.

mao sa d ni akong concern, ting file na sad raba hapit ug annual income tax return, ok nako sa 2551m kay sayon ra

[arclops]

atong isaka para makit-an...

[BatmanBeyond]

@TS, pwede ko mo ride on sa imong thread? Sa mga tax experts, If I may ask unsay mga variables involve in computing your Annual Income Tax with the given assumption:

Source of Income: Business
Non-Vat
Optional Standard Deduction
Married with 2 qualified dependents

I hope naay makahatag ug inputs. Thanks.

Hi Guys! Hope this would answer your questions. Simple illustration only.

Gross Sales/Receipts
- Cost of Sales/Cost of Services
= Gross Income
- Allowable Itemized Deductions (Operating Expenses)
= Taxable Income

Tax due would be based on the income tax table if Taxable Income is not over 500k. Otherwise, flat rate of 32%.

If you choose Optional Standard Deduction (OSD), then just multiply 40% of your Gross Sales/Receipts. That would be your OSD.

So,
Gross Sales/Receipts
- OSD
= Taxable Income
Tax due would be based on the income tax table if Taxable Income is not over 500k. Otherwise, flat rate of 32%.

Hope this helps.

[Duard]

Hi Guys! Hope this would answer your questions. Simple illustration only.

Gross Sales/Receipts
- Cost of Sales/Cost of Services
= Gross Income
- Allowable Itemized Deductions (Operating Expenses)
= Taxable Income

Tax due would be based on the income tax table if Taxable Income is not over 500k. Otherwise, flat rate of 32%.

If you choose Optional Standard Deduction (OSD), then just multiply 40% of your Gross Sales/Receipts. That would be your OSD.

So,
Gross Sales/Receipts
- OSD
= Taxable Income
Tax due would be based on the income tax table if Taxable Income is not over 500k. Otherwise, flat rate of 32%.

Hope this helps.

well appreciated pero daghan man kaayo to fields fill upon sa form oi, makalibog...naa kay link bro nga naay detailed info as to the entries

[BatmanBeyond]

well appreciated pero daghan man kaayo to fields fill upon sa form oi, makalibog...naa kay link bro nga naay detailed info as to the entries

Libog man jud sya bro and new template man sad gud sya. Even CPAs have hard time digesting it. I would say lisod jud sya i explain diri. You can ask anything and I will try to answer them and explain as detailed as I can.

[arclops]

Hi Guys! Hope this would answer your questions. Simple illustration only.

Gross Sales/Receipts
- Cost of Sales/Cost of Services
= Gross Income
- Allowable Itemized Deductions (Operating Expenses)
= Taxable Income

Tax due would be based on the income tax table if Taxable Income is not over 500k. Otherwise, flat rate of 32%.

If you choose Optional Standard Deduction (OSD), then just multiply 40% of your Gross Sales/Receipts. That would be your OSD.

So,
Gross Sales/Receipts
- OSD
= Taxable Income
Tax due would be based on the income tax table if Taxable Income is not over 500k. Otherwise, flat rate of 32%.

Hope this helps.

I think what you mean is,

Taxable Income = Gross Sales - Cost of Sales - Deductions (Itemized or OSD)

Bro, what about personal and additional exemptions? Unsay mga items na pwede ma-cover under sa Cost of Sales? Thanks.

[arclops]

up..up..up

[H.Wolowitz]

nosebleed... hehe ka-remember nuon ko sa college days.

but maka-mingaw sd sya

[arclops]

I think what you mean is,

Taxable Income = Gross Sales - Cost of Sales - Deductions (Itemized or OSD)

Bro, what about personal and additional exemptions? Unsay mga items na pwede ma-cover under sa Cost of Sales? Thanks.

I hope naay makatabang sa pagtubag ani....thanks

[The_Stoic]

Personal and addtl exemption would come after your net income, the difference will be the net taxable income.

ang details sa Cost of Sales managlahi kada industry type. So kung naa ka bakery, ang direct costs pagbuhat sa pan would form part sa imo cost of sales, whereas kung distributor ka ug pharmaceutical products, lahi pud iya cost of sales. Ikaw nga businessman mas knowledgeable ka sa direct costs sa imo business, accountants can only guide you.

Hope that clarifies your query.