Practice question
Explain the difference between a P10,000 allowable deduction and a P10,000 allowable tax credit. Must each reduce tax payable by P10,000?
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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