As general rule, compensation income earners under employer-employee relationship and self-employed taxpayers or those having business may deduct pertinent items from their gross income to arrive at net taxable income.

Rentals on lease of property are deductible provided taxpayer does not acquire interest other than as a mere possessor

Section 34 of the National Internal Revenue Code

ABC Co. is engaged in the sale of goods and services with net sale and net service revenue of P2M and P1M, respectively. The actual Entertainment, Amusement, Representation expense amounted to P21,000. How much is the allowable deduction to be claimed as EAR Expenses:

The allowable deduction for interest expense shall be reduced by 42% of the interest income subjected to final tax effective January 1, 2009.

In the case of a nonresident alien individual engaged in trade or business in the Philippines and a resident foreign corporation, the deductions for taxes shall be allowed only if and to the extent that they are connected with income from sources within the Philippines.

The asset lost was an ordinary asset, and there is a total destruction. Acquisition Cost is 10,000;

Accumulated Depreciation 4,000;

Insurance Recovered 2,500;

How much is the deductible loss?

Bayanihan to Recover as One Act extends net operating losses sustained in taxable years 2020 and 2021 to be carried forward to the next ____ consecutive taxable years.

(1.) Net capital loss may be carried over only in the immediate succeeding year after such capital loss was sustained, and may be charged only against capital gains.

(2.)Net capital loss carry over can only be availed as deduction by individual taxpayer.

There shall be allowed as a depreciation deduction a reasonable allowance for the exhaustion, wear and tear (including reasonable allowance for obsolescence) of property used in the trade or business.

(A) Only one vehicle for land transport is allowed for the use of an official or employee with value not exceeding P2.4 million.

(B) No depreciation shall be allowed for yachts, helicopters, airplanes, and land vehicles over P2.4 million unless the vehicle is used in the company's transport operations or lease of transport equipment

The allowable deductions for donations to Government to be used in non-priority activities, but exclusively for public purpose should not exceed;

Taxpayer should signify his intention to claim Optional Standard Deduction during the filling of the first quarterly return, and such election would be irrevocable for the taxable year in which return is made.

A minimum corporate income tax (MCIT) of two percent (2%) of the gross income as of the end of the taxable year (whether calendar or fiscal year, depending on the accounting period employed) is hereby imposed upon any domestic corporation beginning on the fifth taxable year immediately following the taxable year in which such corporation commenced its business operations.