REVIEW-APC006_MCIT - ASIA PACIFIC COLLEGE Makati City TAXATION MCIT M C I T Minimum Corporate Income Tax 2%ofGI Prof.R.E.Hermosilla R\/NCIT R\/N C I T

REVIEW-APC006_MCIT - ASIA PACIFIC COLLEGE Makati City...

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TAXATION Prof. R.E. HermosillaMCITR/NCIT-MinimumR/N-Regular/Normal-Corporate    C-Corporate I-Income     I-Income T-Tax    T-Tax1998-34%2% of GI1999-33%         of  TI2000-32%2005-35%Meaning of gross income:1. For sale of goods – Gross sales less sales returns, allowances, discounts and cost of goods sold.2. For sale of services – Gross receipts less allowances, discounts and cost of services sold. Cost of services sold means all direct costs and expenses incurred to provide the services required by the customers and clients including (a) salaries and employee benefits of personnel, consultants and specialists directly rendering the service and (b) cost of facilities used directly in providing the service such as depreciation, rental of property and cost of supplies. In the case of banks, cost of services sold shall include interest expense.Corporations covered:Domestic                            Those whose taxable income are subject to the  regular  or  normal  tax  34%, 33%, 32%, 35%            rates  ofResident FC  Not those enjoying preferential rates on their taxable income.When? Effective, 1/1/98.
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