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Show EXHIBIT E 1 of 3 EXAMPLE WHICH ILLUSTRATES THE COMPUTATION OF THE TAX ON COMBINED INCOME OF INDIVIDUALS (Stated in U. S. dollars at the rate of 12.50 pesos to 1.00 U. S. dollar) SCHEDULE OF INCOME AND TAXES WITHHELD Taxes Income Withheld 1. Salary for 4 months, US$1,200 monthly $ 4,800.00 $672.67 2. Participation in profits in May 1965 800.00 85.67 3. Retirement pay 400.00 56.06 4. Salary for 8 months, US$1,440.00 monthly 11,520.00 1,844.54 5. Christmas bonus 960.00 313.60 6. Fees for professional services 2,000.00 80.00 7. Interest on loans to individuals 384.00 38.40 8. Interest on savings account 656.00 - 9. Interest on 8% bonds 80.00 1.60 10. Cash dividends received 1,600.00 240.00 11. Rental income for 5 months, US$52.00 monthly 260.00 1.36 12. Rental income for 7 months, US$60.00 monthly 420.00 14.70 13. Gain on sale of real estate held one year 2,400.00 103.91 14. Gain on sale of stock 1,720.00 - 15. Total income and taxes withheld $28,000.00 $3,452.51 DETERMINATION OF TAXABLE INCOME Total income (line 15) $28,000.00 Less- Nontaxable income-Retirement pay (line 3) $ 400.00 Interest on savings account (line 8) 656.00 Interest on, bonds (line 9) 80.00 Dividends (line 10) 1,600.00 Rental income of less than US$56.00 month1y (line ll) 260.00 65% of rental Income in excess of US$56.00 monthly (line 12) 273.00 Gain on sale of real estate (line 13) 2,400.00 Gain on sale of stock (line 14) 1,720.00 20% of the first US$12,000.00 of income from personal services 2,400.00 9,789.00 $18,211.00 Less - Family exclusions, assuming that the taxpayer has a wife and 3 children 1,080.00 Less- Optional deduction of 10%, with a limitation of US$1,600.00 1,600.00 Taxable income for purposes of the Tax on Combined Income $15,531.00 |
