Overseas Filipino Worker including overseas seaman An individual citizen of the

Overseas filipino worker including overseas seaman an

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Overseas Filipino Worker, including overseas seaman An individual citizen of the Philippines who is working and deriving income from abroad as an overseas Filipino worker is taxable only on income from sources within the Philippines; provided, that a seaman who is a citizen of the Philippines and who receives compensation for services rendered abroad as a member of the complement of a vessel engaged exclusively in international trade will be treated as an overseas Filipino worker. NOTE: A Filipino employed as Philippine Embassy/Consulate service personnel of the Philippine Embassy/consulate is not treated as a non-resident citizen, hence his income is taxable. 10) What are the procedures in filing Income Tax returns (ITRs)? For “with payment” ITRs (BIR Form Nos. 1700 / 1701 / 1701Q / 1702 / 1702Q / 1704) File the return in triplicate (two copies for the BIR and one copy for the taxpayer) with the Authorized Agent Bank (AAB) of the place where taxpayer is registered or required to be registered. In places where there are no AABs, the return will be filed directly with the Revenue Collection Officer or duly Authorized Treasurer of the city or municipality in which such person has his legal residence or principal place of business in the Philippines, or if there is none, filing of the return will be at the Office of the Commissioner. For “no payment” ITRs -- refundable, break-even, exempt and no operation/transaction, including returns to be paid on 2nd installment and returns paid through a Tax Debit Memo(TDM)
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File the return with the concerned Revenue District Office (RDO) where the taxpayer is registered. However, "no payment" returns filed late shall be accepted by the RDO but instead shall be filed with an Authorized Agent Bank (AAB) or Collection Officer/Deputized Municipal Treasurer (in places where there are no AABs), for payment of necessary penalties. 11) How is Income Tax payable of individuals (resident citizens and non-resident citizens)computed? Gross Income P ___________ Less: Allowable Deductions (Itemized or Optional) ___________ Net Income P ___________ Less: Personal & Additional Exemptions ___________ Net Taxable Income P ___________ Multiply by Tax Rate (5 to 32%) ____________ Income Tax Due: Tax withheld (per BIR From 2316/2304) P ___________ Income tax payable P____________ 12) How is Income Tax paid? Through withholding o o o Generally 10% or 15% if the gross annual business or professional income exceeds P720,000 per year o 20% - Fees paid to directors who are not employees and 20% of professional fees paid to non-individuals o Other withholding tax rates Pay the balance as you file the tax return, computed as follows: Income Tax Due P ___________ Less: Withholding Tax ___________ Net Income Tax Due P ___________ 13) Is the Minimum Corporate Income Tax (MCIT) an addition to the regular or normal income tax? No, the MCIT is not an additional tax. An MCIT of 2% of the gross income as of the end of taxable year (whether calendar or fiscal year, depending on the accounting period employed) is imposed on a corporation taxable under Title II of the Tax Code, as
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amended, beginning on the 4th taxable year immediately following the taxable year in
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