Gross Income
Gross Income
Gross Income
Remember:
Final withholding tax does not apply to foreign income.
Prizes and Winnings subject
to Regular Tax
Prizes and winnings that are exempt from final
tax;
Prizes and winnings TOTALLY EXEMPT:
1.Prizes received without effort to join a contest
2.Prizes in athletic competitions sanctioned by
their national sports association
3.Winnings from PCSO or lotto
Summary of Rules
Earned from sources
Within Abroad
Prizes:
P10,000 and below Regular tax Regular tax
More than P10,000 Final tax Regular tax
Winnings other than PCSO and
Final tax Regular tax
lotto
Note: PCSO and lotto winnings that are P10,000 and below are exempt
from any income tax. However, lotto winnings from abroad are items of
gross income subject to regular tax for taxpayers taxable on global
income.
Partner’s Distributable Share
from the Net Income of the GPP
Remember:
GPP – not subject to income tax (i.e., final tax, CGT, or
RIT), because they are merely viewed as pass-through
entities.