Give and simply explain examples of corporate income and allowable deductions..based on latest "Train" Law

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Give and simply explain examples of corporate income andallowable deductions..based on latest "Train" Law

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According to the Corporation Code of the Philippines under section 2 Corporation defined asA corporation is an artificial being created by operation of law having the rights of succession and the powers attributes and properties expressly authorized by law or incident to its existence whereas National internal revenue code NIRC as amended under section 22B as The word corporation shall include partnerships no matter how created or organized jointstock companies joint accounts Cuentas en participation association or insurance companies but does not include general professional partnerships and joint venture or consortium formed for the purpose of undertaking construction projects or engaging in petroleum coal geothermal and other energy operations pursuant to an operating consortium agreement under a service contract with the government This follows that for income tax purposes there are only two 2 main classifications Corporate income taxpayer for juridical entities using BIR Form No 1702 annuallyBIR Form No 1702Q and Individual income taxpayer for nonjuridical entities including estates and trusts using BIR Form No 1701annually and BIR Form No 1701Qquarterly for those engaged in a trade or business or practice of a profession Further for income tax purposes a corporation is further classified as follows A domestic corporation DC means a corporation created or organized in the Philippines or under its laws Resident foreign corporation RFC applies to a foreign corporation engaged in trade or business within the Philippines Examples of this are a Philippine branch of a foreign corporation regional operating headquarters of multinational companies regional or area headquarters of multinational companies representative offices Nonresident foreign corporation NRFC applies to a foreign corporation not engaged in trade or business within the Philippines No See Answer

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