Reference no: EM132796139

Assume that Mr. Romeo Vazquez, a resident citizen of the Philippines, derived income from sources within and outside the Philippines. The information regrading his taxable income and income taxes paid for 2020 are as follows:

                                          Income               Tax paid
Philippines                     220,000          15,000
Japan                           200,000           70,000
USA                               500,000           175,000
Hong Kong                            (120,000)        0

1. The income tax paid in the Philippines is only a partial payment as reflected in the quarterly income tax.
2. The taxpayer choose a tax credit for the income taxes paid to foreign countries.

Problem 1: What is the income tax still due after tax credit?