Thirteenth month pay is exempt from income taxation? Group of answer choices No, only the excess to P82,000.00 No, only the excess to P90,000.00 Yes, it is income received. Yes, compensation income does not allow deductions.

Thirteenth month pay is exempt from income taxation? Group of answer choices No, only the excess to P82,000.00 No, only the excess to P90,000.00 Yes, it is income received. Yes, compensation income does not allow deductions.

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter5: Unemployment Compensation Taxes

Section: Chapter Questions

Problem 6QR

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

Thirteenth month pay is exempt from income taxation?

Group of answer choices

No, only the excess to P82,000.00

No, only the excess to P90,000.00

Yes, it is income received.

Yes, compensation income does not allow deductions.

Rules by which an authority (usually a government) imposes a financial obligation on individuals or organizations within its domain. Property or transactions can be taxed. While taxes are primarily intended to fund the operation of a government, many tax laws are created to encourage or discourage certain behaviors by citizens or companies.

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