1. **Problem Statement:** Calculate taxable income and tax due for Dynasty Corporation under different taxpayer statuses (domestic corporation, resident foreign corporation, non-resident foreign corporation) for Philippines and Singapore. 2. **Formula for Taxable Income:** $$\text{Taxable Income} = \text{Gross Income} - \text{Deductions}$$ 3. **Tax Due Calculation:** - For domestic and resident foreign corporations, assume a flat tax rate of 30% on taxable income. - For non-resident foreign corporations, assume a final withholding tax rate of 25% on gross income (no deductions allowed). 4. **Calculations for Philippines:** - Domestic or Resident Foreign Corporation: - Taxable Income = 1,250,000 - 945,000 = 305,000 - Tax Due = 30% \times 305,000 = 91,500 - Non-Resident Foreign Corporation: - Taxable Income = 0 (deductions not allowed, taxable income not computed) - Tax Due = 25% \times 1,250,000 = 312,500 5. **Calculations for Singapore:** - Domestic or Resident Foreign Corporation: - Taxable Income = 800,000 - 540,000 = 260,000 - Tax Due = 30% \times 260,000 = 78,000 - Non-Resident Foreign Corporation: - Taxable Income = 0 - Tax Due = 25% \times 800,000 = 200,000 **Summary:** - Philippines Domestic/Resident Foreign: Taxable Income = 305,000, Tax Due = 91,500 - Philippines Non-Resident Foreign: Taxable Income = 0, Tax Due = 312,500 - Singapore Domestic/Resident Foreign: Taxable Income = 260,000, Tax Due = 78,000 - Singapore Non-Resident Foreign: Taxable Income = 0, Tax Due = 200,000 This approach follows standard tax rules where non-resident foreign corporations pay tax on gross income without deductions, while domestic and resident foreign corporations pay tax on net taxable income.