3. GENERATE FUNDS BORROW FROM LOCAL AND INTERNATIONAL BANKS SELL PUBLIC LANDS AND GOVERNMENT PROPERTIES INVEST IN CORPORATION COLLECT TAX

7. A FEE/ BURDEN TO SUPPORT THE “SERVICES” OF THE GOVERNMENT % FROM INCOME, PROPERTIES, TRANSACTIONS

10. SYSTEM OF RAISING/ COLLECTING POWER OF THE LEGISLATURE REGULATES FLOW OF INCOME TO CHECK INFLATION

13. I. GROSS INCOME II. TAXABLE INCOME III. TAX DUE IV. WITHHOLDING TAX V. TAX PAYABLE VS TAX REFUND

14. Gross income (Monthly Income) x 12

15. GROSS INCOME – ALLOWABLE EXEMPTIONS (P50,000 (STATUS) + NO. OF DEPENDENTS (not to exceed 4) x P25,000

16. Qualifications of qualified dependent: Must be parents, children, brothers or sisters Must be minor, unmarried and unemployed Must depend upon the taxpayer for chief support For dependents over 21 years old, must be incapable of self-support due to mental or physical defect.

17. Refer to the tax rate table AMOUNT UNDER THE RATE COLUMN + PERCENTAGE (TAXABLE INCOME – AMOUNT UNDER THE OVER COLUMN)

18. OVER BUT NOT OVER RATE P 10,0005% P 10,000P 30,000P 500 + 10% of the excess over P 10,000 P 30,000P 70,000P 2,500 + 15% of the excess over P 30,000 P 70,000P 140,000P 8,500 + 20% of the excess over P70,000 P 140,000P 250,000P 22,500 + 25% of the excess over P140,000 P 250,000P 500, 000P 50,000 + 30% of the excess over P250,000 P 500, 000P 125,000 + 32% of the excess over P500, 000

19. P 22, 500 + [ 25% (P 250, 000 – P 140, 000)] = P22, 500 + [25% (P110, 600)] =P22, 500 + P27, 500 NOTE: 250, 000 = NET TAXABLE INCOME

20. Refer to the withholding tax table Step 1: check the status ME1 OR S1 ME: MARRIED EMPLOYEE S: SINGLE 1: NUMBER OF QUALIFIED DEPENDENT Step 2: Select whether the monthly income falls under the categories of employees with or without qualified dependents. Align the monthly income to the nearest possible amount not exceeding the subsequent constant numerical value on the right column. Step 3: after aligning the amount, subtract the monthly income to the matched nearest amount on the table. The difference should not be negative. Step 4: multiply the result that you got from step 3 to the indicated % on the status row Step 5: add the result to the “exemption amount” MULTIPLY THE ANSWER BY 12 MONTHS, WITHHOLDING TAX SHOULD CLOSELY MATCH THE TAX DUE

21. WITHHOLDING TAX TABLE

22. MONTHLY12345678 Exemption0.00 41.67208.33708.331,875 4,166.67 10, 416.67 Status+0% over +5% over +10% over +15% over +20% over +25% over +30% over +32% over A. Table for Employees Without qualified Dependents. 1)Z0.0108332,5005,83311,66720, 83341,667 2)S/ME50.014,1675,0006,66710,00015,83325,00045,833 B. Table for Single/ married employee with qualified Dependents 1)ME1/S175.016,2507,0838,75012,08317,91727,08347,917 2)ME2/S2100.018,3339,16710,83314,16720,00029,16750,000 3)ME3/S3125.0110, 417 11,25012,91716,25022,08331,25052,083 4)ME4/S4150.0112,50 0 13,33315,00018,33324,16733,33354,167

23. TAX DUE – WITHHOLDING TAX THAT WAS MULTIPLIED BY 12 TAX REFUND NEGATIVE: RETURN OF EXCESS TAX TAX PAYABLE MORE THAN 0: ADDITIONAL CREDIT TO THE GOVERNMENT

24. MR. O, MARRIED, HAS A MONTHLY SALARY OF P32,000. HE HAS 7 CHILDREN. FOUR ARE ALREADY WORKING. TWO ARE STILL IN HIGH SCHOOL & ONE IN ELEMENTARY. FIND THEIR: (A) GROSS INCOME, (B) NET TAXABLE INCOME, (C) TAX DUE, (D) WITHHOLDING TAX, (E) TAX PAYABLE OR TAX REFUND