Pre-Test Instructions: T/F. Module 5 2nd Quarter

Mr. A is a resident citizen. All income of Mr. A, whether

earned here in the Philippines or abroad, is subject to taxation.

• TRUE

• FALSE

Mr. B is a non-resident citizen. He works abroad. Mr. B’s income derived from his work abroad is not taxable here in the Philippines.

• TRUE

• FALSE

Under current tax laws, taxpayers are allowed to deduct a personal exemption of P25,000 and an additional exemption of P50,000 per qualified dependent child, maximum of four (4), from their gross income.

• TRUE

• FALSE

Compensation income is income that is typically derived from self-employment.

• TRUE

• FALSE

Tax due is gross income minus the deductions allowed by law.

• TRUE

• FALSE

Ms. A earns a gross salary of P10,000 during the month of May 2019. Ms. A’s SSS, Phil health, and Pag-ibig contributions for the month of May amount to P2,000. Ms. A’s taxable income is P8,000.

• TRUE

• FALSE

You are employed. The income tax on your salary is required to be paid to the Mayor’s Office.

• TRUE

• FALSE

When computing for the taxable income or the tax due, 0.50 centavos and above is rounded-up to P1.

• TRUE

• FALSE

Taxable income represents the amount of tax required to be paid to BIR.

• TRUE

• FALSE

Social Security System (SSS) contributions are required from individuals who are employed in the public sector (i,e., government).

• TRUE

• FALSE