REVIEW-APC005_Summary_of_Taxing_Income_for_Corp - ASIA PACIFIC COLLEGE Makati City TAXATION SUMMARYOF Prof.R.E.Hermosilla Domestic(a Grossincome Pxxx

REVIEW-APC005_Summary_of_Taxing_Income_for_Corp - ASIA...

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TAXATION  Prof. . R.E. Hermosilla Foreign (b) SUMMARY OF      TAXING INCOME FOR CORPORATIONS     Domestic  (a) Resident Non-Resident On Business Income and Other Income Gross income   Pxxx Pxxx      Pxxx Less itemized deductions            xxx             xxx - Taxable income (compartmentalized then globalized)          Pxxx           Pxxx       Pxxx Applicable tax rate, effective: (Final tax if NRFC) January 1, 1998 34% 34%        34% January 1, 1999 33% 33%        33% January 1, 2000 32% 32%        32% Or, a minimum corporate income tax based on gross income as of the end of the taxable year,  beginning   on the 4th  taxable  year immediately   following  the  year in  which  such  corporation  commenced its business operations, when the minimum income tax is greater than the normal  corporate income tax.  Any excess of the minimum corporate income tax over the normal income tax  shall be carried  forward and creditable  against the normal income tax  for the 3 immediately  succeeding taxable year. 2%                 2%       NA Effective January 1, 2000, an option to a qualified corporation to be taxed based on “gross income”  whose ratio of CGS does not exceed 55% of gross sales or receipts from all sources and that such  choice shall be irrevocable for 3 consecutive years that the corporation availed of such option. 15% NA        NA On Passive Income      subject to Final Tax     A. Interest or yield on bank savings deposit, bank time deposit, deposit substitute or money market  placements, trust funds or similar arrangements; and royalties 20% 20% 1998, 34%; 1999,  33%; & 2000, 32% B. Interest income from depository bank under the expanded foreign currency deposit system 7 ½ % 7 ½ % Exempt ASIA PACIFIC COLLEGE Makati City
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C. Interest on foreign loans 20% D. Intercorporate dividends received from Domestic Corporation Exempt Exempt 15%
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