1. A taxpayer had the following income:
Interest income from deposits in a foreign bank P300,000
Interest from domestic bonds 50,000
Royalties from books published in the Philippines 100,000
Rent income from properties abroad (the lease
Contracts were executed in the Philippines) 150,000
Professional fees for services rendered in the
Philippines to non- resident clients (paid in US dollars) 400,000
Applying the situs rules, the following are the situs of the aforementioned income;
Within Without World Total
Interest on foreign deposits P - P300,000 P 300,000
Interest from domestic bonds 50,000 50,000
Royalties from books in the Philippines 100,000 100,000
Rent income on foreign properties 150,000 150,000
Professional fees 400,000 400,000
Total P550,000 P450,000 P1,000,000
Resident citizen or domestic corporation taxpayers would be taxable on the world income while other
taxpayers would be taxable only on the income from within the Philippines.
