Juan, Reported the following for taxable year 2021:

Gross Income P5,000,000

Cost of Sales 3,000,000

Salaries of employees, net of P100,000 withholding tax and 800,000

P50,000 SSS, medicare and Pag-ibig premium contributions

Fringe Benefits given to rank and file employees 300,000

Fringe Benefits given to managerial employees 136,000

Business related representation and entertainment expenses 100,000

Rent expenses 120,000

Donation to religious and charitable institutions 500,000

REQUIRED: Determine the taxable income of Juan

Public Answer

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