Scribd
Upload
291 views1 page

Problem 4 Solutions

The document lists various interest and royalty income sources for a taxpayer and notes whether they were subject to final withholding tax (FWT) or recipient income tax (RIT). It provides the gross and net income amounts after taxes. The total income reported was P362,900.

Uploaded by

Panda Erar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
291 views1 page

Problem 4 Solutions

The document lists various interest and royalty income sources for a taxpayer and notes whether they were subject to final withholding tax (FWT) or recipient income tax (RIT). It provides the gross and net income amounts after taxes. The total income reported was P362,900.

Uploaded by

Panda Erar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

If tax payer is resident citizen

Interest income from BPI – España Branch from P62,000 – FWT 20% = 12,400
checking account P62,000 – FWT 20%
Interest income from BDO – Intramuros Branch 38,500 - 20% FWT = 7,700
from savings deposit 38,500 - 20% FWT
Interest income from PNB – Quiapo Branch from 42,000 – FWT 15% = 6,300
foreign currency deposit account under the
87,000 FWT – 20% = 17,400
expanded foreign currency deposit system 42,000 – FWT 15%
Interest income from dollar deposit on Bank of 130,000 – Not
RIT 21,000 FWT – 20% = 4,200
New Jersey in the United States included
Interest income from promissory note of Mr. X, 57,000 FWT – 20% = 11,400
Philippines 58,400 RIT
Interest income from promissory note of Mr. X, 16,000 – FWT 10% = 1,600
United States 62,000 Not
RIT Included
60,000 – FWT 20% = 12,000
Yield from deposit substitute, Philippines 87,000 FWT – 20%
Interest from Philippine government securities 21,000 FWT – 20% Total = P73,000
Interest income from long-term deposits,
Philippines 57,000 FWT – 20%
Interest income from long-term deposits, Egypt 62,500 –- RIT
Not Included
Royalties from books, Philippines 16,000 – FWT 10%
Royalties from paintings, Philippines 60,000 – FWT 20%
Royalties from musical compositions, Japan 50,000 –- RIT
Not included

130,000 – RIT

58,400 RIT

62,000 RIT

62,500 – RIT

50,000 – RIT

Total = 362,900

If tax payer is non-resident citizen

You might also like