Income Tax Review Quiz

be defined as a State power, a legislative process, and a mode of government cost distribution

one word; T

For Income Taxation, what is the classification of OFWs?

• Resident Citizens, depending upon arrival to the Philippines. (Vacation from job only)

• Nonresident Citizens

• Resident Aliens

• Nonresident Aliens

Mr. G, the coach of Miami Heat, is in the PH for a month-long exhibition games. While in the country, he invested in shares of stocks of various domestic corporations. What is his classification?

• Nonresident Alien

• Nonresident Alien Engaged in Trade/Business

• Nonresident Alien Not Engages in Trade/Business

Answer explanation

Passive Income such as dividend income is NOT CONSIDERED as income derived from trade or business. (Tabag & Garcia, p. 63)

It is an alien who comes to the Philippines for the purpose of that requires extended stay for its accomplishment. Makes a temporary home of the Philippines, regardless of the intention to return to his foreign residence.

• Resident Alien

• Non-Resident Alien

Joe is an American IT Expert. He was signed by X Telcom from Jan to March of 2021 to improve its wireless service in the PH. Due to unforeseen events, X Telcom indefinitely extended his stay in the country. In this case, he is a?

• Resident Citizen

• Resident Alien

• Non-Resident Alien Engaged in Trade/Business

• Non-Resident Alien Not Engaged in Trade/Business

Answer explanation

Income Taxation by Tabag and Garcia, page 63.

Capital gains from sale of shares of stocks of a domestic corporation and capital gains from sale of real property in the Philippines is subject to what kind of tax?

• Graduated Rate

• Final Withholding Tax

• Capital Gains Tax

Passive incomes from sources WITHIN the Philippines such as:

1. Interest income

2. Dividend Income

3. Royalties

4. Prizes

5. Other winnings

Is subject to WHAT TAX?

• Graduated Rate

• Final Withholding Tax

• Capital Gains Tax

Ano ang Tax Base at Source of Taxable Income na ginagamit kung ang taxpayer ay

NRA-NETB?

• Net Income

• Gross Income

• Within

• Without

Ano ang Tax Base at Source of Taxable Income na ginagamit kung ang taxpayer ay

RESIDENT ALIEN?

• Net Income

• Gross Income

• Within

• Without

Ano ang Tax Base at Source of Taxable Income na ginagamit kung ang taxpayer ay

NONRESIDENT ALIEN-ETB?

• Net Income

• Gross Income

• Within

• Without