GROSS INCOME

All of the following statements are correct, except one. Which is the exception?

• The source of interest income is the country where the debtor resides

• The source of dividend income is the country where the corporation was incorporated

• Rents are considered derived from the country where the property is located

• Income from personal services is considered derived from the country where the services were rendered.

Which is not a creditable withholding income tax?

• Expanded withholding income tax

• Withholding income tax on passive income

• Withholding income tax at source

• Withholding income tax on compensation income

As a rule, this is not part of taxable income

• Profit sharing

• Hazard pay

• Overtime pay

• 13^th month pay

This is taxable income

• Retrenchment pay

• SSS/GSIS benefits

• Separation pay due to resignation

• Refund of Philippine Income tax

One of the following is taxable income

• Gifts, bequests and devices

• Amounts received as rewards for giving information instrumental in the discovery of violation of the Tax Code and seizure of smuggled goods

• Proceeds from life insurance

• Separation pay received by an employee due to a cause beyond his control

As a rule, the following are taxable income, except

• Cash dividend

• Property dividend

• Scrip dividend

• Stock dividend

The following items are exclusions from gross income, except

• Labor union dues

• SSS/GSIS premiums contributions

• IOU’s

• Pag-ibig premiums contributions

If refunded, this is taxable

• Estate tax

• Donor’s tax

• Special assessment

• Fringe benefit tax

Income tax payments to a foreign country, in the case of a resident citizen may be claimed as

• Tax credit and deduction from gross income

• Tax credit only

• Tax credit or deduction from gross income

• Deduction from gross income only

Dividends paid by a domestic corporation maybe taxable but subject to final tax, except

• if received by a resident citizen

• if received by a resident alien

• if received by a non-resident corporation

• if received by another domestic corporation