National Taxes

Summary

In this chapter of economics, the focus is on understanding national taxes in the Philippines, particularly the income tax. The video emphasizes the significance of comprehending income tax calculations as it's an essential part of annual fiscal responsibilities. It delves into different types of national taxes such as income tax, estate tax, value-added tax, excise taxes, and explains how deductions and exemptions work in the context of income taxes. The video demonstrates with examples on how income tax is computed including taxable and non-taxable incomes, deductions, exemptions, and the various tax rates applied based on income brackets.

Highlights

• Income tax basics and its computation discussed 🚀.
• Different national taxes and their regulations explained ✔️.
• In-depth examples on calculating annual income tax 🧮.
• Criteria for taxable vs non-taxable entities outlined 👌.
• Various exemptions and deductions elaborated 💡.
• Importance of timely tax filing and consequences of negligence emphasized 📅.

Key Takeaways

• Understanding income tax is crucial as everyone will eventually deal with it annually 📈.
• National taxes in the Philippines include income, estate, VAT, etc., each with specific implications 💡.
• Income tax computation involves identifying taxable income, accounting for exemptions, and using the correct tax rates 💰.
• Deductions can significantly reduce taxable income, impacting the final tax paid 💸.
• Taxpayer status (single, married, head of family) influences tax obligations and potential exemptions 👥.
• Compliance with tax filing deadlines and understanding potential penalties is essential to avoid extra charges 🕑.

Overview

Hey there, tax explorers! In this engaging dive into the world of national taxes, we’re getting cozy with the basics of income tax – your future fiscal friend! By the end of this session, you’ll know how much you love deductions and how these little gems save your pockets year after year.

We'll unravel the mirage of national taxes – from income tax to estate tax and the slick value-added tax, we’ve got all angles covered. The video smoothly integrates key tax concepts with the rules of the tax jungle in the Philippines, ensuring you walk away a smarter (and more compliant) taxpayer.

To cement understanding, real-life computation examples walk us through how to transform gross into net incomes magically. Alongside, taxpayer classifications get untangled, and we learn why paying tax on time is crucial – complete with penalties if we slack off. It’s a full-featured guide to Being Tax Savvy!

Chapters

• 00:00 - 00:30: Introduction to National Taxes This chapter, 'Introduction to National Taxes', begins by referencing previous discussions on the general characteristics, classifications, and types of taxes. It then transitions to focus specifically on national taxes imposed by the government, with a particular emphasis on the income tax. The chapter underscores the importance of understanding the basics of income tax and its implications.
• 00:30 - 01:00: Introduction to Income Tax The chapter 'Introduction to Income Tax' starts with discussing the inevitability of paying taxes annually, emphasizing the importance of understanding and appreciating the concept of taxation. It highlights that in the Philippines, there are two kinds of taxes under existing laws: national taxes and local taxes. National taxes are imposed by the national government.
• 01:00 - 03:00: Types of National Taxes The chapter discusses different types of national taxes as per the National Internal Revenue Code and related laws such as the Tariff and Customs Code. It also distinguishes between national taxes and local taxes, which are governed by the Local Government Code. Examples of local taxes include real property tax and community taxes.
• 03:00 - 04:30: Income and Taxation Terms This chapter discusses various types of national taxes, focusing primarily on income tax. Income tax is defined as the tax paid on earnings or business revenue. The chapter also outlines other taxes such as estate and donor's tax, value-added tax, and other percentage taxes applicable to businesses such as those in the hospitality industry (e.g., hotels).
• 04:30 - 05:30: Computing Net Income This chapter provides a detailed overview of the various categories of taxes relevant to businesses, including carriers, keepers, securities dealers, and overseas investors, among others. It discusses the role of communication banks, non-bank intermediaries, and other financial institutions in the process of accounting for net income. Additionally, the chapter covers excise taxes on specific goods such as tobacco, highlighting their impact on net income computations.
• 05:30 - 09:00: Tax Payers and Statuses This chapter discusses various taxes imposed by the Bureau of Internal Revenue. It starts with common items like wine and cigarettes, as well as documentary stamps needed for notarizing documents at the notary public. It also addresses other taxes that may be imposed by law, referencing special laws like PD number one.
• 09:00 - 10:00: Understanding Tax Rates The chapter titled "Understanding Tax Rates" delves into various national taxes, specifically highlighting the seven major types: tariffs and customs duties, sugar adjustment taxes, taxes on narcotic drugs, travel tax, private motor vehicle tax, and energy taxes. The chapter, however, places a special focus on income taxation, defining income as any wealth that flows into the taxpayers.
• 10:00 - 15:00: Example Calculations The chapter titled 'Example Calculations' delves into the concept of assets and investments. It discusses how assets are leveraged not just for mere return on capital, but also for generating additional income and wealth. The income and wealth discussed are those that contribute to the increase of one's assets. Further, the chapter highlights the role of capital in investments, emphasizing how capital is strategically applied to investments to derive income. It touches upon the different business investments that individuals make and how these contribute to financial growth.
• 15:00 - 18:00: Non-Taxable Individuals This chapter begins to discuss the concept of non-taxable individuals within the context of income taxation. It addresses how income is typically taxed based on exceeding certain specified amounts, with considerations for deductions and exemptions. Those individuals or corporations whose incomes do not exceed these amounts, after accounting for such deductions and exemptions, are classified as non-taxable. The transcript suggests a focus on understanding and differentiating the terminology associated with income taxation, laying the groundwork for readers to effectively navigate tax-related classifications.
• 18:00 - 22:00: Tax Payment Timing and Penalties In this chapter titled 'Tax Payment Timing and Penalties', the concept of taxable income is introduced. Taxable income is defined as the gross income minus personal and additional exemptions, which will be elaborated on in later sections. The importance of understanding what constitutes taxable income is essential as it determines the amount of income to be taxed. The chapter also touches upon the concept of passive income without delving into specifics, indicating that it will be covered more comprehensively in future discussions.
• 22:00 - 23:00: Assignment The chapter discusses different types of passive income. It starts with income derived from bank interest, explaining that if you have a deposit with any bank, you earn interest as a form of passive income, since no physical work is required to earn that money. It then moves on to discuss dividends, which are income from investments such as stocks or mutual funds. It also mentions royalties, implying that these are other forms of passive income.

National Taxes Transcription

• 00:00 - 00:30 hi welcome back to economics and we will be discussing the national taxes in this chapter so we have learned the uh from the previous chapter the general characteristics the classifications and types of taxes uh in this chapter we will go further on the national taxes imposed by the government specifically the income tax it is very important to learn the basics of income tax and how it is
• 00:30 - 01:00 computed since you will be eventually paying your taxes each year um this is also very important or it's very useful in order for us to have a better understanding and appreciation of the concept of Taxation and there are two kinds of taxes under the existing laws of the Philippines uh we have the national taxes and we also have the local taxes National taxes are imposed by by the
• 01:00 - 01:30 government through the national Internal Revenue code and other related laws such as tariff and Customs code the local taxes on the other hand are those imposed by the local government code right since we uh hence the term local taxes so that is imposed by the local government code and some of these are the real property tax and the community taxes for the local taxes so we will
• 01:30 - 02:00 discuss the national taxes because it has a bigger scope um what are the National taxes so first and foremost is the income tax so for the income tax that's actually the tax that we pay for the income that we earn for the revenue that we earn on our business second is the estate and donor's tax we also have the value added tax we have already discussed that in the previous chapter we also have the other percentage taxes for for this enumerated here uh hotels
• 02:00 - 02:30 carriers Keepers and keepers of garages dealers in Securities and lending investors overseas communication Banks and non-bank uh intermediaries Caterers franchises winnings Finance finance companies insurance companies and Amusements and uh fifth is we have the excise taxes on certain Goods like to tobaco
• 02:30 - 03:00 wine cigarettes Etc and then we have the documentary stamps uh the stamps the documentary stamps that you buy when you go to the notary public for for notarizing your document number seven is other taxes that may be imposed by law and collected by the Bureau of internal revenue uh other taxes will be uh based on the uh special laws that were created which are listed here like the PD number one
• 03:00 - 03:30 1464 uh which is the tariffs and customs duties the sugar adjustment taxes taxes on narcotic drugs travel tax private Motor Vehicle Tax and energy taxes so those are the seven major um types of national taxes okay so uh we will be focusing on the income taxation because in in taxation income is defined as all the wealth that flows into the taxpayers
• 03:30 - 04:00 assets uh your assets or my assets other than as a mere return on Capital so any income any wealth that flows into my that goes into my assets then for capital capital is applied to investments from which income is derived so these are the in the uh Investments that you make businessman or an
• 04:00 - 04:30 individual it is imposed to uh corporations or individual incomes in excess of the specified amounts of course the there are deductions and there are also exemption so any excess of that is going to be taxed right taxable when we say taxable so we have to classify the terms uh in income taxation or we have to know the
• 04:30 - 05:00 terms in income taxation first is the taxable income when we say taxable income this is the gross income after the personal and additional exemptions have been deducted so we will discuss the personal and additional exemptions later so um when we say taxable income that is the amount of your income that is going to be taxed passive income passive income this
• 05:00 - 05:30 applies to income from interest of banks so if you have deposited amount in uh if you have a deposit in any Bank uh it will be earning interest so that's a passive income you did not do physical work to earn that money uh the deposits your dividends Dividends are income from your investment so if you buy stocks or if you buy mutual funds you have dividends royalties or these are the the
• 05:30 - 06:00 amount that you pay for let's say if someone if you're a singer and they are using your your music then they are going to give you royalty fee prizes of course if you join contest and other winnings gross income on the other hand it refers to all income regardless of kind or form derived from any insurance so gross income that's your overall income
• 06:00 - 06:30 um uh regardless if where it came from and then we also have the net income so net income is different from the gross income because gross income is the whole amount that you earned while the net income is the gross net the the gross income minus of the allowable deductions that have been subtracted from your gross income okay but these are not included the there these are this the
• 06:30 - 07:00 net income is not including the life insurance the amount received by the insured as the return of Premium gifts requests devices compensation for injuries or sickness income exempts under treaty retirement benefits pension or gratitudes or the the tips if you are into the service industry those are not included in the net income so those are the the terms that
• 07:00 - 07:30 we have to know when it comes to income taxes and we will also have to as promised we will discuss the deductions what are the deductions these are the amounts that the law allows to be subtracted from the gross income so if you have a gross income of 100,000 we are going to deduct there the exemptions and the non-t taxable amount from your um from your salary or from
• 07:30 - 08:00 your income so the example will be the optional standard deduction like the SSS field Health Pig uh medical insurance itemized deductions uh let's say for example Mort gauge or uh medical expenses right business expenses the interest rate if you borrowed money uh interest taxes those are not um those are the deductions or example of
• 08:00 - 08:30 deductions losses bad debts depreciation of properties uh when we say depreciation of properties this is H this happens let's say for example if you bought a car worth 1 million pesos today that car will not be or the amount of that car will decrease 2 years from now it will not be 1 million anymore it will be like uh depends on how you are going to give value to the
• 08:30 - 09:00 depreciation uh it can be 800,000 already after 2 years because that that same car when you bought it it's brand new for 1 million but uh you used it already the wear and tear of the car that is the depreciation so the value of the the thing depreciated it decreased then depletion of property so it's uh charitable and other constit contribution so if you did charitable
• 09:00 - 09:30 institution if you donated that will be deducted from your gross income and then of course the trust trust funds okay so those are the deductions that uh you are going to see in your income tax if you are going to file for income tax return right and let's uh check what is the taxable income CU we have already mentioned this in the past
• 09:30 - 10:00 so the taxable income refers to the gross income minus the deductions allowable by law and the personal and additional exemption so we have personal we also have additional exemption which we will uh discuss later so um we have to clarify first who are the taxpayers so we again we have already discussed this in the previous chapter but to provide emphasis the
• 10:00 - 10:30 taxpayers are the individuals the corporations and general Partnerships individuals uh that can be a citizen citizen a Filipino citizen who is either residing here or abroad as long as they are Filipino citizens so that's resident or non-resident aliens those are the the foreign um people foreigners it's either they are residing here here or they are not
• 10:30 - 11:00 residing uh here corporations domestic or foreign so if we say domestic uh corporations those are Incorporated under the Philippine laws so they are they are uh Incorporated here when we say foreign um corporations those Incorporated under the laws of their respective countries but they are operating here in the
• 11:00 - 11:30 Philippines okay so those are foreign corporations next is General Partnerships um we have two types of General Partnerships we have the professional partnership and the general co- Partnerships when we when we say general part professional partnership this refers to um a partnership based on their um practicing their profession no since we have the term professional
• 11:30 - 12:00 partnership so they are practicing their profession let's say for example a law office a partnership no or um a clinic okay which is a partnership meaning if it's a partnership it is owned by um one two or more CU if the business is owned by one person we call it soulle proprietorship so there's only one owner if if there are more than one like two
• 12:00 - 12:30 or more owners it is called partnership when we say corporations corporations is owned also for of more than o more than one owners but this time the owners are shareholders or stockholders not Partners okay so that is the general professional partnership and the other one is General co-partnership so any any partnership
• 12:30 - 13:00 that is conducting business no the that's the other partnership so these are the the taxpayers now we have to discuss also the status of the taxpayers so before there are only uh we only have married and single status so you just put married or single this time we have the head of the family this is actually the
• 13:00 - 13:30 amend due to the amendment we already have the head of the family so if we say married this is this is an individual who are uh individuals who are legally and lawfully married with or without children or with legally adopted children so they are married they have their own children or the adopted the head of the family is any unmarried or legally separated male or female
• 13:30 - 14:00 with one or both parents or one or more brothers or sisters and one or more legitimate or recognized natural or legally adopted children living with them and are dependent upon him or her for their substantial or primary support So any unmarried person legally separated who has someone depending on them no so you are categorized as or your status
• 14:00 - 14:30 will be the head of the family number three single so any unmarried Widow is included widower is included the Balo and the uh I mean buo and bua in bisaya uh or uh a married person who is legally separated or analed with no qualified dependence so no one is depending you're you're still single right so so these are the status
• 14:30 - 15:00 of the taxpayers now um these taxpayers before uh they have like uh I mean they have exemptions which are different from each other uh but due to the Amendments it had it was um uniformed already so it it's uh true to all um regardless if you are single or married you have a
• 15:00 - 15:30 personal exemption of 50,000 so if you are single married or head of the family you have automatically get 50,000 personal exemption in your income tax return but if you are a head of the family or a married person and you have dependence or you have children you will you will get an additional exemption of 25,000 pesos each each dependent but it
• 15:30 - 16:00 should not be more than four qualified dependents okay so the maximum dependence or the maximum additional exemption for married and head of the family is 100,000 pesos so if you have one dependent that's 25,000 if you have two that's 50,000 if you have three 75,000 and4 100,000 but if you have five children there's no more additional 25,000 the maximum is only 100,000 or
• 16:00 - 16:30 maximum of four qualified dependents now let's go to tax rates so uh in this is the the table uh for the tax rates we have here um 0 to 10,000 pesos you'll pay 5% tax rate if your income is from 10,000 up to 30,000 pesos your tax rate
• 16:30 - 17:00 is 500 Pesos plus 10% of the excess of 10,000 so let's say for example your your income is 15,000 so there's 5,000 excess so therefore 500 plus 10% of 5,000 right 30 uh if your income is 30,000 between 30,000 to 70,000 so that's 2,500 plus 50 % of the excess of
• 17:00 - 17:30 the lower amount which is 30,000 and so on so that's 85 + 20% 22,500 + 25 um 50,000 + 30% and if your income is more than 500,000 your tax rate is 125,000 plus 32% of the excess of 500 so if it's 1 million if your income is 1 million so 1 million * minus 500,000 so
• 17:30 - 18:00 your your tax rate is 125,000 plus 32% of 500,000 okay so um I hope that's clear now um how are we going to compute for our income tax or annual income tax in order for us to do that we have to we have to um we have to get uh the the
• 18:00 - 18:30 annual income or there are things that you have to to know for you to be able to um compute and what are those number one we have the monthly income so that's what you are getting paid every month then you have your tax exemption when we say tax exemption these are the deductions for SSS fi Health Pig contribution or if there's gsis for the government employees so those are tax
• 18:30 - 19:00 exemption personal exemption these are the deductions that we have discussed earlier 50,000 for each individual regardless of your status if you're single head of the family or married and you have 25,000 per qualified dependent not exceeding four okay so these are the things that you have to know in order for you to compute for your annual income tax
• 19:00 - 19:30 so how are we going to compute for for us to know the annual income tax we have to compute first the gross taxable income and how are we going to do that for we have to get our gross income the gross income is your monthly salary times 12 months so that's your gross income minus the tax exemption that we've discussed in the previous slide we have the SSS fi Health P contribution
• 19:30 - 20:00 gsis if you have times 12 month so that's for the whole year and you will get your gross taxable income okay after we get the gross taxable income we have to get the gross net income and how do we do that we have to subtract it the the personal exemption which is the 50,000 plus 25 for each dependent from your gross taxable income
• 20:00 - 20:30 and that is what you get the net taxable income so after we get the net taxable income we also have to get the the taxable amount okay and then we can get the we can get the amount due which is your tax so uh to illustrate we will have an example here so we have Mr ch homo he is single works as head nurse
• 20:30 - 21:00 at St Matthews hospital for the taxable year of 20120 so that's last year that he should pay uh he should have paid already April he received the following income his basic salary is 25,500 per month okay so uh from his salary he incurred deductions for uh the SS contribution which is 350 pesos per month Pig 400 pesos field health or Medicare
• 21:00 - 21:30 200 pesos that's a total of 950 pesos per month so we already have we have the income the basic salary we also have the tax ex deduction which is the uh 950 pesos now we can compute for the gross taxable income so to to compute the gross taxable income we have to get the basic salary time 12 months so that is
• 21:30 - 22:00 25,000 actually this is uh 25 yeah 25,000 time 12 months so that's 306,000 then the exemptions or the deductions 950 * 12 that's 11,400 gross taxable income so that's 29 24,600 so we already have the gross taxable income now let's go to the net taxable income so how do we compute that
• 22:00 - 22:30 this is the gross taxable income this is how we going to compute the net taxable so we have gross taxable income which is 294,000 minus personal exemption he is single he doesn't have any dependent so that's that's 50,000 uh personal exemption so 294 600 minus 50,000 the net taxable income is 200
• 22:30 - 23:00 44,600 okay so we already have the net taxable income now uh let's determine the annual income tax due so how much is going to pay for the income tax so you remember we have a table this is the rates for the taxes so uh his net taxable income is 24 24,600 and um how much is he going to pay so uh he is under bracket 5 so this
• 23:00 - 23:30 is bracket 1 2 3 4 5 his income is in between 140,000 and 250,000 so therefore the amount that he is going to pay will be this right so how are we going to do that we will have 22,500 plus the 25% of the the diff difference between 244 minus 140 this is
• 23:30 - 24:00 the Baseline that's 22,500 plus 25% of 10 14,600 and that is 22,500 plus the the 25% of this is 26,1 15 therefore the annual tax du is 48,6 15 pesos so that's the yearly
• 24:00 - 24:30 amount and um as a general rule employers automatically withhold taxes meaning they keep it uh from their employees income every month as reflected in their pay slips so they they do not deduct the whole uh amount of 48,000 they only deduct it on a monthly basis and at the end of the year the employers are the ones to file and pay
• 24:30 - 25:00 for the income tax of their employees uh any excess of withheld taxes is refunded to the employees so why are there uh sometimes they are refund sometimes they still add more uh amount for the taxes cuz you know uh there will be excess and shortage because you don't know within that year so let's say for example if you have uh if you are a woman you got
• 25:00 - 25:30 pregnant so you have to have a maternity leave so those maternity leave you are not being paid but you are getting uh maternity allowance from SSS so that one is not compute it will not be included in your taxable amount right because you are not being paid by the company so sometimes the employer actually just keep on uh deducting regular amount every month and and when the actual computation at the end of the
• 25:30 - 26:00 year they that's when they will be able to determine the actual amount uh that's due so therefore sometimes it is it's in excess so any excess will be refunded to the employee if it's short then they are going to to um deduct from the next salary for what is lacking on the uh the taxable income or I mean the in the tax
• 26:00 - 26:30 amount due and uh this will be uh you can see it in the B form number 170 right so since they are deducting monthly so in the case of Mr choso uh his annual income tax is 48,6 how much they are going to withhold every month the answer is 4,54 how did we do that does 48650 you just have to divide it by 12 months so that's
• 26:30 - 27:00 4,54 all right so every month na I give withhold company of 4,000 from him um and any excess will be refunded or if there's any shortage they are going to add another tax deduction on the following pay slip right so another example is we have uh Miss Halos hos uh single parent
• 27:00 - 27:30 working at Magnus eventos Incorporated she has three children Joshua which is 15 years old Eugene 12 and Rain 7 so and she has a basic salary of 12,000 per month from her salary uh she uh there are deductions for SSS which is 400 pesos a month we have P EIG 400 pesos a month fi heal 200 pesos that's a total of 1,00 pesos a month so let's go ahead and
• 27:30 - 28:00 compute the gross taxable income gross taxable income we have 12,000 * 12 months so that's 144,000 minus the 1,000 monthly contributions times 12 that's 12,000 the gross taxable income is 132,000 pesos now let's go to the gross net uh the gross tax uh the net taxable income so net taxable income is the
• 28:00 - 28:30 gross taxable minus the personal exemption which is 50,000 minus uh she has additional deductions because she has dependence she has three so therefore that's 75,000 deduction so from 132,000 minus 50,000 minus 75,000 the remaining amount is 7,000 which is the net taxable income so if we are going to go back to our table 7,000 belongs in
• 28:30 - 29:00 the first um bracket which is 0 to 10,000 if that is the case Miss Halos hos will pay 5% only of the uh net taxable income because that's the bracket so the amount tax du is 350 pesos so out of 7,000 * 5% is 350 now
• 29:00 - 29:30 the question is how much what is the amount the monthly withholding tax of Miss hoso so how much is her employer will deduct from her salary every month so what you are going to just do is 350 divided by 12 so that's your monthly uh deduction for taxes okay so uh I hope that is clear
• 29:30 - 30:00 and additionally there are people that are not required to pay tax and there are also people and people that are required so of course we already know the people that are required those um individuals resident and non-resident um aliens resident or non-resident corporations Partnerships right so as long as they are engaged or they are getting their income in the Philippines they are required to file income taxes who are the people that are
• 30:00 - 30:30 not required the people that are not required uh first is any individual whose gross income does not exceed or the gross income is less than the deductions okay uh remember you have a personal deduction of 50,000 so if your gross income in a year is uh below 50,000 meaning you don't have to pay for um an income tax
• 30:30 - 31:00 because uh say 40,000 minus 50 so that's -10 you don't have to pay but if it's more than 50 then yes you are going to pay say your monthly or your annual income is uh 60,000 and your um additional exemption is 50,000 so that's 10,000 remaining so you are going to pay a tax which is equivalent to 5% of the 10,000 based on
• 31:00 - 31:30 the table and uh another is any individual who are um earning through compensation no pure compensation it's not a salary it's not regular uh income as long as it does not in exceed 60,000 so you're only getting allowances or um as long as it's not regular and less
• 31:30 - 32:00 than 60,000 uh you don't have to pay for tax another one is individual who are um uh whose income consist purely of interest rates uh prices royalties so those people they don't have to pay because those who uh the burden the tax burden is not on the winner it's on the organizer so the
• 32:00 - 32:30 organizers are the one who will be charged for tax on the amount that they donated or they the they gave as price fourth are the individual who is exempt from any under any tax code or any any other laws right so if it's there are special laws or there are special tax code that they will be uh Exempted let's say for example indigenous people right
• 32:30 - 33:00 or um religious religious uh activities or charitable activities those are not required to file taxes non-government organizations that are doing charitable work are also Exempted to file income taxes so um those are the ones who are required and not required to file taxes but but for those who are required to
• 33:00 - 33:30 pay taxes you have to um you have to take note that the government actually file or uh impose uh what do you call that penalties right s charges so we will discuss that but we have to discuss first the where and when uh of the tax payment so when you are going to pay it every 15th of April every year so uh
• 33:30 - 34:00 let's say for example your income for 2020 you are going to pay that April 2021 for my income this 2021 I will uh I will pay the income tax return April of 2022 okay so uh that's how it works and the place where so of course it should be on the authorized people uh you you
• 34:00 - 34:30 should have to do it through the authorized people like your Revenue District officer uh Revenue collection officer um or any authorized agent Bank um duly authorized treasurer of the city or municipality as long as they are authorized by BR to receive the the payments or file your income taxes then uh you're good to go because there's
• 34:30 - 35:00 also a penalty if you are not paying it in your uh authorized Revenue District so let's go to the Penalty SE charges and interest so there are you will be charged sear charges and interest if you have falsely applied or filed it false or fraudulent tax return um which is done willing willfully meaning uh too all right so you will be
• 35:00 - 35:30 paying 50% of the tax deficiency so if your tax deficiency is 100,000 you are going to pay 50 uh 50% penalty so on top of the 100,000 that you owe plus 50% penalty so that's 50,000 so 150,000 is the the amount that you are going to pay for if you have filed it falsely or fraudulently number two uh in case of
• 35:30 - 36:00 willing full neglect to file tax return within the time prescribed by law you also have to pay 50% of the tax right additional 50 in case of failure of failure to file any income tax return failure to pay the deficiency tax within the time prescribed failure to pay the full payment of taxon on any tax return required or failure to file a tax return
• 36:00 - 36:30 with the proper Revenue officer you will be paying 25% extra or additional on the amount due okay so that's why you uh you've heard I mean there are actually people who are not able to pay so they they have to pay for uh the penalty or S charges that is imposed by B right so I hope that this is clear and
• 36:30 - 37:00 if you have any questions you just post your questions or you post it in the the classroom and for your assignment that will be submitted next week um if Mr A's basic salary so you are Mr a uh your basic salary is 38,000 per month and you pay 452 452 pesos for your SSS contribution 56 pesos for your pagibig
• 37:00 - 37:30 and pig contribution and 472 pesos for your field Health contribution so what is your annual tax due and how much will be withheld by your employer monthly so you have to show your solution so to to do the annual tax du you have to find the gross taxable income net taxable income and then the the amount the uh the tax due using the the tax table that
• 37:30 - 38:00 I gave you and then you also have to show how much is going to be the monthly deduction that will be done by the employer based from what you have gathered what you have come up with uh from the am the amount of tax due right so again you have to submit it next week and uh thank you have a good day