Practice question
A taxpayer has P900,000 pertinent gross income and P100,000 authorized deductions. The correctly computed tax on the resulting taxable income is stipulated to be P80,000, with a fully allowable P15,000 credit. There are no other adjustments. Compute taxable income and remaining tax.
Legal references
- NIRC Section 31, as amended by RA 10963 Section 8; https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html
- NIRC Section 34(C), distinction between deduction and credit for qualifying foreign taxes; https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
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