optional standard deduction

How to compute Optional Standard Deductions (OSD)?

Under the advent of Republic Act No. 8424 otherwise known as “The Tax Reform Act of 1997” (RA 8424), OSD is applicable only to individual taxpayers engaged in trade or business, or engaged in the practice of profession. It is computed at ten percent (10%) based on the gross profit after deducting the cost of

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BIR Audited Financial Statements, when mandatory?

By this post, let us answer the question of SMEs on whether or not financial statements are mandated to be audited by an independent Certified Public Accountant. Section 232 of the Tax Code, as amended provides, and hereunder quoted: “Section 232. Keeping of Books of Accounts. – (A) Corporations, Companies, Partnerships or Persons Required to

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Tax savings under Optional Standard Deduction (OSD)

For taxpayers engaged in trade, business, or practice of profession, optional standard deduction (OSD) is a good are to look at for tax savings.  Under Section 34(L) of the Tax Code, as amended by Republic Act No. 9504 dated June 17, 2008, and hereunder quoted: “Section 34(L) Optional Standard Deduction. – In lieu of the

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