8 Corporation covered by Special Laws Rate specified under the respective

8 corporation covered by special laws rate specified

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8) Corporation covered by Special Laws Rate specified under the respective special laws G) Resident Foreign Corporation 1) a. In General – on net taxable income 30% b. Minimum Corporate Income Tax – on gross income 2% c. Improperly Accumulated Earnings – on improperly accumulated taxable income 10% 2) International Carriers – on gross Philippine billings 2.50% 3) Regional Operating Headquarters on gross income 10% 4) Corporation Covered by Special Laws Rate specified under the respective special laws 5) Offshore Banking Units (OBUs) on gross income 10% 6) Foreign Currency Deposit Units (FCDU) on gross income 10% [return to index]
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Related Revenue Issuances RR No. 4-95, RR No. 4-96, RR No. 5-97, RR No. 1-98, RA 9337, RR 14-2002, RR 12- 2007 [return to index] Codal Reference Sections 23-59, 67-73 and 74-77 of the National Internal Revenue Code [return to index] Frequently Asked Questions 1) What is income? Income means all wealth, which flows into the taxpayer other than as a mere return of capital. 2) What is Taxable Income? Taxable income means the pertinent items of gross income specified in the Tax Code as amended, less the deductions and/or personal and additional exemptions, if any, authorized for such types of income, by the Tax Code or other special laws. 3) What is Gross Income? Gross income means all income derived from whatever source. 4) What comprises gross income? Gross income includes, but is not limited to the following: Compensation for services, in whatever form paid, including but not limited to fees, salaries, wages, commissions and similar item Gross income derived from the conduct of trade or business or the exercise of profession Gains derived from dealings in property Interest
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Rents Royalties Dividends Annuities Prizes and winnings Pensions Partner's distributive share from the net income of the general professional partnerships 5) What are some of the exclusions from gross income? o Life insurance Amount received by insured as return of premium Gifts, bequests and devises Compensation for injuries or sickness Income exempt under treaty Retirement benefits, pensions, gratuities, etc. Miscellaneous items o income derived by foreign government o income derived by the government or its political subdivision o prizes and awards in sport competition o prizes and awards which met the conditions set in the Tax Code o 13th month pay and other benefits o GSIS, SSS, Medicare and other contributions o gain from the sale of bonds, debentures or other certificate of indebtedness o gain from redemption of shares in mutual fund 6) What are the allowable deductions from gross income? Except for taxpayers earning compensation income arising from personal services rendered under an employer-employee relationships where the only deduction provided that the gross family income does not exceed P250,000 per family is the premium payment on health and/or hospitalization insurance, a taxpayer may opt to avail any of the following allowable deductions from gross income:
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