Reference no: EM132557223
Question - A resident citizen, 50 yrs old, married with 3 qualified dependent children asks you to assist him in computing his taxable net income for the year 2019:
Gross professional income, net of 15% withholding tax P850,000
Cost of services 350,000
Professional Expenses 300,000
Retirement benefits received from his previous employer that maintained a reasonable private pension plan (he served the company for 12 years 250,000
Lump sum benefits received from SSS 200,000
Prize in sports tournament sponsored by a group of businessmen promoting health products 50,000
Gain realized from sale of bonds (maturity period is 4 years) 10,000
Yield from short term bonds 20,000
Interest on long-term deposits with maturity period of 5 years 30,000
Philippine Lotto winnings 500,000
Share in the net income of a business partnership 100,000
Required -
1) How much is the total amount of excluded/exempted income?
2) How much is the final withholding tax on certain income?
3) How much is the taxable net income?