The document discusses different types of taxes individuals pay, including income tax and VAT. It focuses on explaining gross income tax and how gross income relates to taxable income and tax dues. Several examples and activities are provided to help students understand how to calculate gross income, deductions, taxable income, and tax dues for individuals based on their salary and other compensation.

1. Gross
Income Tax
and Tax
Dues
Fundamentals
of
Accountancy,

2. What company logo is this?

4. 56.06

6. 1. Taxes from foods
or stuffs you
bought? (VAT).
2. Taxes from your
income/salary?

7. Not all workers or
earners are paying
taxes from their
income to the

8. Lesson focus: GROSS INCOME TAX
DUES
At the end of the class, I can…
• prepare the list of sources of gross
income from compensation and gross
income from business, and the
corresponding personal and additional
deductions;
• compute gross taxable income and tax

9. Income earned
by an individual in a
year is taxable and
both the company and
the individual are
obligated to pay their
income taxes.

10. Relationship between gross income,
taxable income, tax dues
Gross
Incom
e
Taxable
Income
Tax Dues

11. ACTIVITY:

12. GROUP No. 1 Group
analysis
Who are required to pay income tax in the Philippines?
 A citizen of the Philippines, living in the Philippines and has an income earned inside and
outside the Philippines.
 A citizen of the United States of America who travelled in the Philippines for vacation.
 A non-resident citizen who has income earned in the Philippines.
 An OFW whose income earned in the Philippines.
 An OFW whose income earned outside the Philippines.
 A foreigner living in the Philippines with income earned inside and outside the Philippines.
 A Philippine Company who has business outside the Philippines.
 A foreign corporation who has income inside the Philippines.

13. GROUP No. 2 Group
analysis
Direction:
You will be given a list of Sources of Gross
Income and “deminimis” benefits with its
corresponding non-taxable limits. Guided by that
information, analyse each scenario to determine
whether, there will be a taxable due.

14. De Minimis
Benefits Non-taxable Limit
b. Monetized value of
vacation
and sick leaves
(government employees)
 none
C. Medical cash allowance
to dependents
P125.00 per month
d. Rice subsidy  P1,500 per month
e. Uniform and clothing  P5,000 per year
f. Actual medical benefits  P10,000 per year
g. laundry allowance
 P300 per month
h. Employee’s achievement
award
 P10,000
i. Gifts (Christmas d
Anniversary)
 P5,000 per year
j. Daily meal allowance for
 25% of the basic minimum
wage

15. Situations:
1. Carlo received a monthly rice subsidy of 2,500 Php per month from ABC Company.
2. The basic pay of Carlo is Php 80,000 per month.
3. The boss of Carlo announced that it will release a Christmas gift worth Php 3,000
semi-annual to all his employee.
4. In order to minimize the effect of the pandemic, Kho Yaw Company decided to
give a laundry allowance to Carlo amounting to Php 60,000 per year.

16. GROUP No. 3 Group
analysis
Direction:
Briefly explain the steps in determining tax on
13th month pay and other benefits and then using
the information, find the excess taxable income of
the problem situation below.

18. GROUP No. 4 Group
analysis
Direction: Briefly explain the TRAIN
LAW specifically the income tax rate, and
then using the guide below compute for
the tax dues.

20. 1. Determine the ANNUAL BASIC PAY of Carlo.
2. Add the EXCESS TAXABLE from the ANNUAL BASIC PAY.
3. Deduct annual SSS, PHILHEALTH, and PAG-IBIG
Contributions.
4. After deduction, you will have now the taxable income.
3. Find the tax dues using the tax rate from the train act.

21. ACTIVITY:

22. Problem Situation:
Adolpo Daugdaug is an employee at Bread Pitt Company with a
monthly salary of Php 73,000. He will also receive a 13th month
and 14 months’ pay. Because of his exemplary performance at
work, Adolpo received an employee’s achievement award
amounting to Php 25,000. Aside from that he will also receive a
rice subsidy of 1,000 per month. Assuming that his annual
contributions are the following:
 SSS = 24,500 Php
 Philhealth= 1,500
 Pag-Ibig = 1,300

23. How do you feel
when you
discover that by
simply purchasing
food or other
items, you are
contributing to or
paying taxes to

24. What will your
feelings be if
you learn that
there are
miscalculations
or errors in the
calculations of
your tax dues?

25. So, what will
you going to
do?

29. There will be no miscalculations if you apply the correct
formula to solve a specific problem or situation.

30. This is also why you pay taxes, for the
authorities are God’s servants, who give
their full time to governing.
-Romans 13:6