Taxation Lessons

Three Inherent Powers of the State

What are the Three Inherent Powers of the State

The Three Inherent Powers of the State In order to survive, the State or in other words, the government, has three inherent powers. Since they are inherent, laws are not needed in order for them to exist. What are the…..

Business Law and Taxation Lessons

Inherent Powers of the State In order to survive, the State or in other words, the government, has three inherent powers. Since they are inherent, laws are not needed in order for them to exist. What are the three inherent…..

What is Taxation

TAXATION Taxation is one of the primary powers of government over the people. The process where by charges are imposed on individuals or property by the legislative branch of the federal government and by many state governments to raise funds…..

Inherent Limitations of Taxation

Taxation is unlimited, plenary, comprehensive and supreme. However, despite this, taxation is subject to various inherent limitations. These limitations prevent taxation power from being too powerful. Inherent limitations are limitations that need no passage of laws in order for them…..

Personal Exemption – Basic and Additional Exemption for Individual Taxpayers

Net taxable income is determined by deducting the allowable deductions from gross income. Individual taxpayers who earn solely compensation income, business income, or a combination of both business and compensation income are entitled to deduct from their gross earnings the…..

Forms of Compensation Income

Compensation Compensation is payment for services performed by an employee to his employer under the employee-employer relationship. The basis upon they are paid is immaterial in determining whether it constitutes compensation or not. But if the remuneration is in form…..

Premium Payments on Health and Hospitalization Insurance – Tax Rule

Health insurance is an insurance against the risk of incurring medical expenses among individuals. The insurer can develop a routine finance structure, such as the monthly premium or payroll tax, to ensure that money is available to pay for the…..

What is Optional Standard Deduction

Optional Standard Deduction (OSD) for Philippine tax purposes, is an allowable deduction from professional or business income of the persons who are entitled and who may elect to use this kind of deduction in lieu of the itemized deductions. The…..

Tax Penalties, Interest and Surcharges

A civil penalty is a form of financial penalty imposed by a government agency as restitution for doing something wrong. The wrongdoing is typically defined by a codification of legislation and regulations. The civil fine is not considered to be a criminal punishment, since its primary purpose is…..

Tax Avoidance Schemes – How to Legally Minimize Taxes

What Is Tax Avoidance? Let’s face it. None of us, in general, enjoy paying taxes. Aside from biting a huge chunk out of our parent’s take home pay, it doesn’t do us any good hearing and reading stories about mismanagement…..