Optional Standard Deductions

Question 1

Percentage of OSD

Answer 1

1. For individuals = 40% of gross receipts or gross sales
2. For corporations = 40% of gross income subject to regular tax

Question 2

Mandatory Itemized deductions

Answer 2

1. Taxpayers that are exempt with no taxable income
2. Taxpayers that are subject to special/preferential tax rates
3. Taxpayers subject to mixed tax rates

Question 3

OSD & GPP

Answer 3

• GPP net income shall be determined in the same manner as a anner as a corporation
• GPP OSD is 40% of gross income
• Partners can no longer claim expense against their share from GPP net income