Katya Corporation, has the following data in the year 2022:
Gross income, Philippines P6,000,000
Gross income, China 5,000,000
Expenses, Philippines 2,500,000
Expenses, China 3,000,000
Interest on time deposit 10,000
Interest on money market placements net of tax 21,000
During the taxable year, the total assets of the corporation is P25,000,000.
Additional information:
1. The income tax rate is 25% because the taxable income is more than
P5,000,000.
2. The interest on money market placements is net of withholding tax of 20%.
Therefore, the amount of P21,000 is equivalent to 80% only of the actual
amount. To compute for the 100% which is the basis in computing the tax,
the amount which is net of the tax be divided by 80%.
3. The interest on money market placements of the nonresident foreign
corporation in the amount of P21,000 is net of 25% tax or equivalent to 75%
(100%-25%) only. To compute the amount which is gross tax, it has to be
divided by 75%.
Requirement: Compute the income tax due and the final taxes payable of Katya
Corporation if:
(a) Domestic corporation
(b) Resident foreign corporation
(c) Nonresident foreign corporation
