Final Exam_Taxation

There are two types of regular income tax: proportional corporations and progressive income tax for individuals.

• True

• False

NRA-NETBs and NRFCs are also subject to regular income tax.

• True

• False

All taxpayers are subject to final tax.

• True

• False

Taxable income is synonymous to net income.

• True

• False

For all taxpayers, taxable income means the pertinent items of gross income not subject to capital gains tax and final tax less allowable deductions.

• True

• False

All taxpayers are subject to regular income tax.

• True

• False

Employed taxpayers can claim expenses from their employment as deductions against their compensation income.

• True

• False

Items of gross income subject to final tax and capital gains tax are excluded in gross income subject to regular income tax.

• True

• False

The P250,000 income tax exemption for individuals is designed to be in lieu of their personal and business expenses.

• True

• False

Non-taxable compensation are items of compensation that are that are excluded against gross income.

• True

• False