CREATE LAW: CONCEPTS AND APPLICATIONS

What is CREATE Law?

• RA 10963

• RA 11534

• RA 11494

• RA 8424

Changes under CREATE Law are related to provisions affecting corporations only

• True

• False

If a Domestic Corporation reported a taxable income of Php 5 Million and with asset of Php 20 Million, the Corporate Income Tax rate is

• 20%

• 25%

• 30%

• 15%

If a Resident Corporation reported a taxable income of Php 5 Million and with asset of Php 20 Million, the Corporate Income Tax rate is

• 20%

• 25%

• 30%

• 15%

If a Proprietary Education Institution's related gross income is higher compared to its unrelated activity, the preferential tax to be used in computing tax is:

• 1%

• 10%

• 20%

• 25%

How do you compute net capital gain in relation to the computation of the CGT on sale of unlisted shares of stocks?

• Capital gain less capital loss

• Selling price less cost

• Net capital gain less net capital loss

• Market value less cost

ABC Corp., a DC, registered in 2018. When will the MCIT be properly imposed?

• 2021

• 2022

• 2023

• 2024

Nicanor and Jose are professional beauticians. They decided to open a Salon and so they registered the partnership with the SEC, the LGU and the BIR. What will be the tax rate to be applied in computing the partnership income?

• 0% (exempt)

• 20% or 25%

• 30%

• 25% only

Temporary reduction of MCIT and other preferential tax rates are only until?

• June 30, 2023

• June 30, 2024

• December 31, 2023

• June 30, 2022

All are subject to 25% CIT, except:

• Offshore Banking Unit

• Regional Operating HQ of Multi-National Companies

• Regional Area HQ of Multi-National Companies

• Resident Foreign Corporation