Season 9 Exclusions from GI PDF

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PHILIPPINE ASSOCIATION of CERTIFIED TAX TECHNICIANSONLINE SEMINARJanuary-February 2021SEASON 9 – EXCLUSIONS FROM GROSS INCOME Morly insured his life with his estate as beneficiary. In 2020, after he had paid P50,000 in premiums, he assigned the policy to Eva for P35,000, and Eva continues paying the...

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PHILIPPINE ASSOCIATION of CERTIFIED TAX TECHNICIANS ONLINE SEMINAR January-February 2021

SEASON 9 – EXCLUSIONS FROM GROSS INCOME 1. Morly insured his life with his estate as beneficiary. In 2020, after he had paid P50,000 in premiums, he assigned the policy to Eva for P35,000, and Eva continues paying the premiums. Morly died and Eva collected the total proceeds of P200,000. Eva, after the assignment and before Morly’s death, paid total premiums of P70,000. how much is taxable to Eva? 2. Cora insured her life with ABC Insurance Company. Under the contract, she will pay a quarterly premium of P5,000 for ten (10) years. In case of death before the 10th year, her beneficiary will receive an indemnity in the amount of P350,000. If she is still living on the 10th year, she will receive P500,000. a. How much is taxable if she dies within the 10-year period? b. How about if she outlived the policy? 3. Sal had the following data from his employment in the government in 2019: Basic salary

P 300,000

Taxes withheld Additional compensation allowance Pag-ibig fund contributions Union dues Philhealth contributions GSIS premiums 13th month pay Mid-year bonus Loyalty award

18,000 24,000 6,000 2,400 4,125 27,000 25,000 12,000 5,000

How much is the taxable compensation income? 4. Annual basic salary (minimum wage) Overtime pay

P 48,000 12,000

Holiday pay

6,000

Night shift differential pay

3,000

Hazard pay

12,000

Gross sales as fresh fish vendor

800,000

Cost and expenses How much is the taxable income?

500,000

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