Reference no: EM133182579

Questions -

Q1. X, a resident citizen, is the sole owner of ABC Company. In 2020, ABC Company reported a Net income of P600,000. Included in the net income reported by ABC Company are the following:

Interest income earned from BDO, Philippine bank, P10,000;

Gain on sale of real property, not used in business, located in the Philippines, P40,000;

Rental income earned in Canada, P30,000.

In addition, during the year, X received royalties on books sold in Manila amounting to P20,000, net of tax, from Z Corp and rental income in Philippines of P10,000. The royalties and rental income in Philippines are not recorded in the books of ABC Company.

How much is the basic income tax due of X?

Q2. Mr. Ramos, a non-resident citizen, sold shares of stocks of a domestic corporation directly to a buyer at a net gain of P320,000.

Compute the capital gains tax.