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How to file Income tax annually.pptx - How to file INCOME...

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INCOME TAXANNUALLYHow to file
The Concept of IncomeWHY IS INCOME SUBJECT TOTAX?WHAT IS INCOME FORTAXATION PURPOSES?
Why is income subject to tax?Income is regarded as the best measure of taxpayers ability topay tax.Ability to pay theory- states that taxpayers should be requiredto contribute based on their relative capacity to sacrifice for thesupport of the government.Those who have more should be taxed more.Those who have less should contribute less.
What is income for taxationpurposes?
Gross Incomerefers to any inflow of wealth to the taxpayer from whatever sourcelegal or illegal that increases net worth. It includes:
BIR Form No. 1700Annual Income Tax Return For IndividualsEarning Purely Compensation Income(IncludingNon-Business/Non-Profession Related Income)
DescriptionEvery resident citizen who receives compensation income from any source, as well as everyresident alien and non-resident citizen who receives compensation income from within thePhilippines, are required to file this form, with the following exceptions:1.a person whose taxable income is no more than P 250,000.00;2.a person whose pure compensation income, as defined in Section 32(A)(1), is deduced from sources insidethe Philippines and on which income tax has been correctly withheld (tax due equals tax withheld) inaccordance with Section 79 of the Code: Provided, however, that a person who receives compensationcontemporaneously from two or more employers at any point during the tax year is required to file anincome tax return;3.a person whose only source of income is liable to final withholding tax under Section 57(A) of the Tax Code;and4.a person who receives the minimum wage as described in Section 22(HH) of the Tax Code or a person who isexempt from paying income tax under the terms of the Tax Code and other general or specific legislation.
Filing DateEach year, this form, which covers the previoustaxable year's income, issubmitted on or beforeApril 15.
BIR Form No. 1701Annual Income Tax Return For Individuals(including MIXED Income Earner), Estates andTrusts
DescriptionIn accordance with Section 51 of the Code, as amended, persons who areinvolved in trade, business, or the practice of a profession, as well as thosewith mixed income (i.e., those engaged in trade, business, or the practiceof a profession who are also earning compensation income), must file BIRForm No. 1701. All of the transactions for the taxpayer's calendar year areincluded in the yearly income tax return.

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Term
Spring
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Taxation in the United States

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