INCOME TAXATION_BA_Sem 2_22-23_CY1_Q1

1. Under the CREATE Law, the MCIT rate for the year 2021 is 2%.

2. Under the CREATE Law, the MCIT rate for the year 2021 is 1%.

• Both statements are true.

• Both statements are false.

• Only statement 1 is true.

• Only statement 2 is true.

1. For companies using the fiscal year ending June 30, the MCIT rate for the taxable year ending June 30, 2021 is 1%.

2. For companies using the fiscal year ending June 30, the MCIT rate for the taxable year ending June 30, 2021 is 1.5%.

• Both statements are true.

• Both statements are false.

• Only statement 1 is true.

• Only statement 2 is true.

1. For companies engaged in subdivision development, the value of the unsold lots will be excluded in the P100M total assets threshold.

2. For companies engaged in subdivision development, the value of the unsold lots will be included in the P100M total assets threshold.

• Both statements are true.

• Both statements are false.

• Only statement 1 is true.

• Only statement 2 is true.

1. Domestic corporations breaching the P100M total assets and P5M net taxable income for the year 2022, RCIT is 20%.

2. Domestic corporations breaching the P100M total assets and P5M net taxable income for the year 2022, RCIT is 25%.

• Both statements are true.

• Both statements are false.

• Only statement 1 is true.

• Only statement 2 is true.

1. Proprietary educational institutions is subject to the P100M total assets and P5M taxable income threshold for it to be taxed either 10% or 1% under the CREATE Law.

2. Proprietary educational institutions exceeding the P100M total assets and P5M taxable income threshold is being taxed at 25% under the CREATE Law.

• Both statements are true.

• Both statements are false.

• Only statement 1 is true.

• Only statement 2 is true.

1. Regional Operating Headquarters using the December 31 as year end, RCIT for the year 2022 is 25%.

2. Regional Operating Headquarters using the December 31 as year end, RCIT for the year 2021 is 10%.

• Both statements are true.

• Both statements are false.

• Only statement 1 is true.

• Only statement 2 is true.

1. Unappropriated retained earnings in excess of paid-up capital before the effectivity of the CREATE law is subject to Improperly Accumulated Earnings Tax.

2. Unappropriated retained earnings in excess of paid up capital after the effectivity of the CREATE Law is not subject to Improperly Accumulated Earnings Tax.

• Both statements are true.

• Both statements are false.

• Only statement 1 is true.

• Only statement 2 is true.

1. Under the CREATE Law, interest expense during 2021 of a domestic corporation is fully deductible.

2. Under the CREATE Law, interest expense during 2021 is reduced by 33%.

• Both statements are true.

• Both statements are false.

• Only statement 1 is true.

• Only statement 2 is true.

1. For apprenticeship training expense to be allowed for additional deduction, deduction shall not exceed 10% of the direct labor wage.

2. For apprenticeship training expense to be allowed for additional deduction, deduction shall exceed 10% of the direct labor wage.

• Both statements are true.

• Both statements are false.

• Only statement 1 is true.

• Only statement 2 is true.

1. Vacation leave availed or utilized by the employee who is minimum wage earner is taxable.

2. Sick leave availed or utilized by an employee who is a minimum wage earner is taxable.

• Both statements are true.

• Both statements are false.

• Only statement 1 is true.

• Only statement 2 is true.