Practice question
A doctor receives compensation from an established employment and P1,000,000 of fees from a separate qualifying practice. She validly elects the mixed-income 8% option for the practice and claims another P250,000 reduction from those fees. What is the correct treatment of the professional stream?
- P60,000, because the reduction is always duplicated
- No tax, because the doctor already has a salary
- P80,000 under the mixed-income option, without a further P250,000 reduction from the professional base
- A compulsory 35% of gross fees in every case
- The fees must be called dividends
Legal references
- NIRC Section 24(A), as amended by RA 10963, Section 5: https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html
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