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Questions and Answers
Define income taxation.
Define income taxation.
Income taxation is a direct tax imposed on the privilege of receiving income. It encompasses the tax on yearly profits from property, professions, trades, or offices, as well as a tax on an individual's income, emoluments, profits, and similar earnings.
What is the difference between the global tax system and the schedular tax system?
What is the difference between the global tax system and the schedular tax system?
The global tax system refers to a tax regime where all types of income are subject to a single tax rate or set of tax rates, while the schedular tax system involves different tax rates being applied to specific types of income.
What are the features of the Philippine income tax system?
What are the features of the Philippine income tax system?
The features of the Philippine income tax system include: (1) being a direct tax borne by the income recipient, (2) being progressive with tax rates increasing as the tax base increases, and (3) being comprehensive by adopting the citizenship and residence principles.
What is the basis for the progressive nature of the Philippine income tax system?
What is the basis for the progressive nature of the Philippine income tax system?
What is the citizenship principle in the Philippine income tax system?
What is the citizenship principle in the Philippine income tax system?
Flashcards
Income Taxation
Income Taxation
A direct tax imposed on the privilege of receiving income, encompassing taxes on yearly profits from various sources and individual earnings.
Global Tax System
Global Tax System
A tax system where all income types are taxed under one set of rates.
Schedular Tax System
Schedular Tax System
A tax system applying different tax rates to specific types of income.
Ability to Pay Principle
Ability to Pay Principle
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Citizenship Principle
Citizenship Principle
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Study Notes
Income Taxation
- Income taxation is a system where the government levies a tax on an individual's or business's income or profits.
Global Tax System vs. Schedular Tax System
- The global tax system is a system where all income is aggregated and taxed as a whole, regardless of source or type.
- The schedular tax system, on the other hand, separates income into different schedules, each with its own tax rate, and taxes each schedule separately.
Features of the Philippine Income Tax System
- The Philippine income tax system is a progressive tax system, where higher income earners are taxed at a higher rate.
- The system is based on the principle of taxation of all income, regardless of source, whether from within or outside the Philippines.
- The system uses a self-assessment approach, where taxpayers are required to declare their income and pay the corresponding taxes.
- The system also provides for tax exemptions, deductions, and incentives.
Progressive Nature of the Philippine Income Tax System
- The basis for the progressive nature of the Philippine income tax system is the ability-to-pay principle, where those who have a higher income are taxed at a higher rate.
- The system has different tax brackets, where higher income earners are taxed at a higher rate, and lower income earners are taxed at a lower rate.
Citizenship Principle
- The citizenship principle in the Philippine income tax system states that all Philippine citizens are taxed on their worldwide income, regardless of source.
- This means that Philippine citizens are taxed on their income, whether earned in the Philippines or abroad.
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Description
Test your knowledge on income taxation with this quiz! Explore the definition, scope, and principles of this direct tax imposed on the privilege of receiving income. Challenge yourself with questions on income sources, calculations, and more. Perfect for students and professionals studying taxation law.
