Taxation Enhancement - 2&3

Due to his technical expertise Engr. Juan Dela Cruz was hired by a foreign company contractor in Indonesia to provide technical assistance on the usage of the machineries used in the production. Starting February to March 2022, for two (2) months he was hired for a project-based contract. Then he came home, after a month he received a call that he was re-hired for another five (5) months contract for the same taxable year. Engr. Juan Dela Cruz is considered as

• Resident Citizen

• Non-Resident Citizen

• Resident Alien

• Non-Resident Alien

2. Mariah is an American singer and was engaged to sing for three hours per night for straight - five (5) days between October 1-5, 2022 in Araneta Coliseum in the Quezon City, Philippines. After which she will return to the USA. For income tax purposes, she will be classified as:

• Resident Alien

• Non-resident Alien Engaged in Trade or Business

• Non-resident Alien Not Engaged in Trade or Business

• Resident Citizen

Taxable only from income from sources within the Philippines only, except:

• Resident Citizen

• Non-Resident Citizen

• Resident Alien

• Non Resident Alien

The gross income of alien individuals employed by POGO entities shall include:

• Basic Salary and Wages

• Annuities

• Compensation, renumeration and other emoluments, such as honoraria and allowances, received from OGLs and Service Providers

• All of the above

Which of the following interest income derived within the Philippines is subject to basic income tax?

• Interest Income from bank deposits

• Interest Income from loan

• Interest Income from deposits substitutes

• Interest Income from trust funds

Which of the following income of an individual taxpayer is subject to final tax?

• Php 10,000.00 prize won by a resident citizen

• Dividend income received by a resident citizen from a resident foreign corporation

• Share in net income of a general professional partnership received by a resident citizen.

• Dividend Income by a non-resident citizen from a domestic corporation

A Filipino Citizen is a natural person who is:

I. Born by birth with father and/or mother as Filipino citizens.

II. Born before January 17, 1963 of Filipino mother who elects Philippine citizenship upon reaching the age of majority.

III. Acquired Philippine citizenship after birth (naturalized) in accordance with Philippine laws.

IV. Those citizens of the Philippines before and at the time of adaptation of the Constitution on February 2, 1987.

• I only

• I and II only

• I and III only

• I and IV only

The excess of de minimis and other benefits over their respective ceilings prescribed under the regulations shall be:

• Considered as part of other benefits subject to tax only the excess of over the Php 90,000.00 ceiling.

• Not be considered in determining the Php 90,000.00 ceiling of benefits excluded from gross income under the Tax Code

• Both and and b

• Neither a and b

Statement I - Meal allowance and lodging furnished by the employer to the employees are exempt from tax if the purpose is for the “advantage of the employer”.

Statement II – Daily meal allowance for overtime work and night/graveyard shifts not exceeding twenty-five (25%) of the basic minimum wage.

• Only statement I is correct

• Only statement II is correct

• Neither of the statements are correct

• Both statements are correct

The cost of educational assistance extended by an employer to the dependents of an employee shall be treated as taxable fringe benefit, unless:

• Th education or study of the dependent is directly connected with the parent’s employer’s trade, business or profession.

• There is a written contract between them that the employee is under obligation to remain in the employ of the employer for a period of time they have mutually agreed upon.

• The assistance was provided through a competitive scheme under the scholarship program of the employer.

• All of the above.