Practice question
A professional earns PHP10,000 fees subject to stipulated PHP1,000 creditable withholding and receives PHP9,000 cash. No other adjustments apply. Which starting presentation reflects the income and credit?
- PHP9,000 gross fees with no recognition of withholding.
- PHP1,000 gross fees and PHP9,000 final tax.
- PHP10,000 tax deduction from tax due merely because the fee was earned.
- PHP10,000 gross fees with the properly supported PHP1,000 tax credit.
- No income because the client kept part of the payment.
Legal references
- NIRC Sections57-58,105-106 and110: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
- RA11976, Sections9-10, current NIRC58(E) credit/refund conditions and trust-fund rule: https://lawphil.net/statutes/repacts/ra2024/ra_11976_2024.html
- CIR v. Smart Communications, G.R.Nos.179045-46, August25,2010, main decision: https://lawphil.net/judjuris/juri2010/aug2010/gr_179045-46_2010.html
Answer this question in flashcards to review your response and continue practicing.