GLIMPSE OF A CPA'S MIND

LESSON 2: Income Taxation on Individuals I.                      Classification of Individual Income Taxpayers 1.         Citizens (at the time of 1987 Const./ father & mother are citizens/ born before Jan 17, 1973/ naturalized by law) a.         Resident Citizen (RC) (permanently resides in the Philippines) b.         Non-resident Citizen (NRC) (physical presence is abroad MOST OF THE TIME) 2.         Aliens a.         Resident Alien (RA) (resident but not a citizen) b.         Non-resident Alien (NRA) (not a resident, not a citizen) 1.         ETB (carrying a business/ stayed more than 180 days) 2.         NETB (stayed 180 days or less) 3.         Employed by: a.         RAHQ or ROHQ of multinational firms (taxed at 15% of GI) b.         OBU’s (taxed at 15% of GI) c.         Petroleum contractors & sub-con. II.                                                   Sources of Income                             Tax Base                  Tax Rates

SUMMARY OF CHANGES AS INTERPRETED BY PRICEWATERHOUSECOOPERS (PWC) (See separate page link for IAS 19  as revised in January 2013) Glance of revised IAS 19  The revised standard on accounting for employee benefits is mandatory for years commencing on or after 1 January 2013. The most significant effect of the changes is on defined benefit plans and other post-employment benefits; however, termination benefits and other employee benefits are also affected.  The revised standard raises several application questions for plans that include employee contributions.  Actuarial gains and losses, the effect of the asset ceiling and the actual return on plan assets (‘remeasurements’) are recognised in the balance sheet immediately, with a charge or credit to other comprehensive income (OCI) in the periods in which they occur. They are not recycled subsequently.  Interest expense or income will now be calculated on the net defined benefit liability (asset) by applying the discount