BIR RDO 27, PICPA NMMC & PAMA Tax Awareness Quiz

For Minimum Corporate Income Tax (MCIT) purposes, the taxable year in which business operations commenced shall be the year in which the corporation is

• a. Registered with the Securities and Exchange Commission (SEC)

• b. Registered with the Business Permit and Licensing Office (BPLO)

• c. Registered with the Bureau of Internal Revenue (BIR)

• d. Registered with the Department of Trade and Industry (DTI)

To qualify for the reduced corporate income tax rate of 20%, the total assets should not be more than P100M

• a. Inclusive of all land owned by the corporation

• b. Inclusive of land where the business entity’s office, plant and equipment are situated

• c. Exclusive of all land registered under the name of the corporation

• d. Exclusive of land where the business entity’s office, plant and equipment are situated

True or False.

The additional deduction equivalent to ½ of the actual training expenses shall be applicable only to entities engaged in manufacturing and the actual training expenses which pertain to employees under supervisory, managerial, administrative and support functions are included.

• True

• False

Pursuant to Revenue Regulations No. 14-2021, the implementation of the following provisions of Revenue Regulations No. 5-2021 are hereby suspended pending passage of appropriate legislation, except:

• a. Section 2 (C), on the definition of Proprietary Educational Institutions, insofar as it includes therein the phrase, “which are non-profit”.

• b. Section 2 (D), on the definition of Proprietary Hospitals, insofar as it includes therein the phrase, “which are non-profit”.

• c. Section 2 (E), on the definition of Non-Profit, insofar as it applies to “Proprietary Educational Institutions”.

• d. Section 3 (B), which provides illustration on the tax treatment of Proprietary Educational Institutions that are non-profit.

True or False.

The 1% Minimum Corporate Income Tax (MCIT) for Regional Operating Headquarters (ROHQ) shall be imposed only for the period January 1, 2022 to June 30, 2023.

• True

• False

Which of the following transactions is not exempt from VAT?

• a. Sale of real properties not primarily held for sale to customers or held for lease in the ordinary course of business with selling price of P3,200,000.00

• b. Sale of real property utilized for socialized housing

• c. Sale of house and lot and other residential dwellings with selling price of P3,199,200

• d. Sale of real properties utilized for low-cost housing with selling price of P3,200,000

Percentage taxpayers who have overpaid taxes as a result of the decrease of tax rate from 3% to 1% starting July 1, 2020 until the effectivity of RR No. 4-2021 are allowed for a tax refund in the event that:

• a. The taxpayer shifted from non-VAT to VAT-registered status

• b. The taxpayer has opted to avail the eight percent (8%) income tax rate at the beginning of taxable year 2021.

• c. Both a and b

• d. None of the above.

Statement 1: Percentage taxpayers who are regularly filing the return and have the excess percentage tax payments as result of the decrease of tax rates from 3% to 1% starting July 1, 2020 until effectivity of RR No. 4-2021 may only be carried forward to the immediately succeeding taxable quarter.

Statement 2: The carry-over portion is only intended for the Percentage Taxpayers who are regularly filing the returns and are expected to have overpaid taxes as a result of the retroactive application of the CREATE Law.

• a. Only statement 1 is correct.

• b. Only statement 2 is correct.

• c. Both statements are correct.

• d. Both statements are incorrect.

To correct statement 1: Excess percentage tax payments may be carried forward to the succeeding taxable quarters UNTIL THE OVERPAID AMOUNT IS FULLY UTILIZED.

Pursuant to the passing of Republic Act (RA) No. 11534 also known as CREATE Law, the percentage tax rate has been decreased from 3% to 1% starting July 1, 2020 to _________.

• a. June 30, 2021

• b. June 30, 2022

• c. June 30, 2023

• d. June 30, 2024

For a manual filer, which of the following shall he/she mark in the Percentage Tax Return?

• a. “To be issued a Tax Credit Certificate”

• b. “To be Refunded”

• c. Write the phrase “To be Carried Over”

• d. None of the above.