Practice question
A purely self-employed individual validly elects the8% option under Section24(A)(2)(b). The taxpayer then deducts an additional40% OSD from the statutory gross-sales/receipts base before applying that option. All eligibility facts for8% are stipulated. Which is correct?
- The8% option uses its stated statutory base; OSD cannot be layered onto it as an extra deduction
- Every8% election automatically adds OSD
- OSD converts the8% rate into a tax credit
- The taxpayer may privately replace the statutory base
- Every OSD rule must be applied to salary instead
Legal references
- RA10963 TRAIN: https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html Section5 amending Section24(A)(2)(b), and Section11 OSD provision.
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