Practice question
A mixed-income taxpayer uses graduated rates for qualifying business income and elects OSD there, while earning taxable salary. Another taxpayer validly elects the8% self-employment option. Explain why OSD cannot simply be applied to every peso received in either case.
Legal references
- RA10963 TRAIN: https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html Section5, Section24(A)(2)(b)–(c); Section11, compensation exclusion and OSD.
Answer this question in flashcards to review your response and continue practicing.