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MARY JOY P. JUNIO, CPA
Notre Dame of Midsayap College
Midsayap, Cotabato
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Income Tax
of
Individuals
Individual taxpayers arenatural persons withincome derived withinthe territorial
jurisdiction of a taxingauthority.
These are classifiedas citizens and aliens.
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Under Section 1, Article IV of thePhilippine Constitution, a FilipinoCitizen is he who is/has:
a. Born with father and/or mother as
Filipino citizensb. Born before January 17, 1973 of
Filipino mother who electsPhilippine citizenship upon
reaching the age of majorityc. Acquired Philippine citizenship
after birth in accordance with thePhilippine laws.
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An alien is aforeign-born
person who is notqualified toacquire
Philippinecitizenship bybirth or after
birth.
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1. Resident Citizen is a Filipino citizen whostayed permanently in the Philippines orstayed outside the Philippines for less than183 days during the taxable year.
2. Nonresident Citizen is a Filipino citizenwho stayed outside the Philippines for 183days or more during the taxable year andhas established proof to the BIRCommissioner of his definite intention toreside outside the Philippines on apermanent basis as an immigrant oremployee.
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Classifications of Aliens1. Resident Aliens are persons who
are not
citizens of the Philippines but are residingwithin the Philippines including foreignindividuals who have stayed in thePhilippines for more than one year from
date of arrival.2. Nonresident Aliens are foreign individualswhose residences are not within thePhilippines:a. Those engaged in trade or business
within the Philippines (more than 180 days)b. Those not engaged in trade or business
within the Philippines (180 days or less)
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Special Taxpayers are
those who are taxed with
a 15% tax rate. This
applies to compensationincome derived within
by aliens or Filipino
citizen (not engaged in
trade or business in thePhilippines) with special
employment contracts.
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