7th Article | Volume 02 | Issue 02

Applicable Income Tax Deductions of Small and Medium-Sized Enterprises in Urdaneta City  

Floyd Alexis G. Rafanan

Instructor, Urdaneta City University, Urdaneta City

Pangasinan, Philippines

Published: May 2024

DOI: https://doi.org/10.17613/c5b8-ca39

Abstract

This study aimed to assess the awareness and practice of income tax deductions among small and medium-sized enterprises (SMEs) in the food service industry in Urdaneta City, Pangasinan, focusing on ordinary itemized deductions, special deductions, and income exclusions. Using a qualitative and descriptive research approach, 108 SMEs were surveyed via convenience sampling based on the list provided by the Business Permits and Licensing Office. Findings showed that SMEs, predominantly operating as corporations with 4-6 years of business tenure and capitalization ranging from ₱3M to ₱15M, were generally aware of and compliant with ordinary deductions and income exclusions. However, there was a lower level of awareness and implementation observed concerning special deductions. Thus, an extension program with targeted information, education, and communication materials was proposed to enhance SMEs' understanding and utilization of special income tax deductions in the food service industry in Urdaneta City, Pangasinan

Keywords: awareness, practice, ordinary itemized deductions, special deductions, income exclusions

How to cite:

Rafanan, F. A. (2024). Applicable Income Tax Deductions of Small and Medium-Sized Enterprises in Urdaneta City. International Journal of Multidisciplinary Educational Research and Innovation. 2(2), 109-128. https://doi.org/10.17613/c5b8-ca39.