Law 202: Quiz 3

A seller of agricultural food products is vat-exempt. His annual gross sales in 2018 amounted to P3,000,000. To what business tax is he liable?

• 3% tax on vat-exempt persons

• 12% value-added tax

• 3% common carrier's tax

• none of the above

The taxpayer is a trader of poultry feeds. Determine his applicable business tax.

• Subject to 12% vat

• Vat exempt but subject to 3% OPT under Section 116

• 12% vat or 3% OPT, at his option

• Exempt from 12% Vat and OPT

One of the following is subject to three percent (3%) percentage tax

• Establishments whose annual gross sales or receipts exceed P3,000,000 and who are VAT registered.

• Businesses whose annual gross sales or receipts exceed P3,000,000 and who are not VAT registered.

• VAT registered establishments whose annual gross sales or receipts do not exceed P3,000,000

• Establishments whose annual gross sales or receipts do not exceed P3,000,000 and who are not VAT registered.

Floyd (self-employed) is a non-vat registered taxpayer who operates a convenience store. The following were provided for 2018:

Sales of processed food items P280,000

Sales of non-food items P220,000

Purchases of processed food items P100,000

Purchases of non-food items P80,000

Salaries of helpers P48,000

The percentage tax is

• P15,000

• P50,000

• P27,200

• P32,000

Statement 1: The gross receipts of common carriers derived from their incoming and outgoing freight shall be subject to the local taxes imposed under the Local Government Tax Code.

Statement 2: The 3% common carrier's tax is based on the actual quarterly gross receipts or minimum quarterly receipt whichever is lower.

• Only statement 1 is correct

• Only statement 2 is correct

• Both statements are correct

• Both statements are incorrect

A non-vat registered transportation contractor is engaged in the transport of passengers, goods and cargoes. What business taxes is he liable?

• 12% value-added tax;

• 3% common carrier's tax;

• 3% tax on VAT-exempt persons on gross receipts from transport of goods and cargoes and 3% common carrier's tax on gross receipts from transport of passengers;

• 12% VAT on gross receipts from transport of goods and cargoes and 3% common

  carrier's tax on gross receipts from transport of passengers.

One of the following statements is wrong: Operators of transport facilities are

• Subject to the value-added tax on gross receipts from transporting passengers.

• Subject to the value-added tax on gross receipts from transporting goods and cargoes.

• Subject to percentage tax on gross receipts from transporting passengers.

• Subject to the value-added tax on gross receipts from renting out its transportation facilities.

Isarog is a vat registered common carrier with passenger buses and cargo trucks. For the month of June 2018, it had the following data on revenues and receipts, taxes not included:

o For transporting passengers, gross revenues and receipts of P330,000.

o For transporting cargoes, gross revenues of P220,000, of which P200,000 was received

o For renting out to the MMDA its towing trucks, gross receipts of P50.000, representing P10,000 from gross revenue of the quarter ending March 31 and P40,000 for the month of June.

The percentage tax is:

• P1,500

• P9,900

• P15,900

• P17,400

The Republic of Korea, as an act of goodwill, does not impose business taxes to Philippine carriers Korean Air is operating in the Philippines having two flights a week. If You were engaged by Korean air as its tax consultant and asked you whether it is liable to percentage tax which of the following will be your advice?

• Korean Air is liable to percentage tax based on gross receipts from passengers, goods, cargoes and mails

• Korean Air is liable to percentage tax based on gross receipts from passengers

• Korean Air is liable to percentage tax based on gross receipts from goods, cargoes and mails only.

• Korean air is not liable to percentage based on the principle of reciprocity.

Which of the following franchise grantees is subject to the franchise tax?

• A Franchise on radio and/or television broadcasting companies the annual gross Receipts in the preceding year exceed P10,000,000.

• Franchise on gas and water utilities.

• Franchise on toll road operations.

• PAGCOR and its licensees and franchise