Finals - Income Tax

Individual taxpayers are natural persons with income derived within the territorial jurisdiction of a taxing authority.

• True

• False

Incomes earned outside the Philippines by OFWs are tax exempt because they are considered nonresident citizen.

• True

• False

A foreigner who shall live in the Philippines with no definite intention as to his stay is a nonresident alien.

• True

• False

Generally, a nonresident alien not engaged in trade or business is subject to 25% creditable withholding tax on his gross income in the Philippines.

• True

• False

Sale of real property classified as capital asset to the government is subject to 6% capital gains tax or basic income tax, at the option of the taxpayer.

• True

• False

A fringe benefit is any goods, service or other benefits furnished or granted by an employer in cash or in kind, including basic salaries to individual employees.

• True

• False

A fringe benefit which is subject to the fringe benefit tax is taxable income of the employee.

• True

• False

A fringe benefit which is subject to the fringe benefit tax is taxable income of the employee.

• True

• False

Fringe benefits subject to fringe benefit tax cover only those fringe benefits given or furnished to managerial or supervisory employee.

• True

• False

The grossed up monetary value of fringe benefit shall be determined by dividing the monetary value of the fringe benefit by the grossed up monetary value factor.

• True

• False