TDOA Activity: Income Taxation for Corporation

Which of the following is not treated as corporation?

• General professional partnership

• A joint venture or consortium formed for the purpose of undertaking construction projects

• A joint or consortium for engaging in petroleum, coal, geothermal and other energy operations pursuant to an operating consortium agreement under a service contract with the government

• All of the above

Which of the following is subject to income tax?

• Philippine Amusement and Gaming Corporation (PAGCOR)

• Local Water Districts

• SSS and GSIS

• Philippine Health Insurance Corporation (PHIC)

Which of the following is taxable based on income from all sources, within and without?

• All of the choices

• Domestic Corporations

• Resident Foreign Corporations

• Non-resident Foreign Corporations

The term applies to a foreign corporation engaged in trade or business in the Philippines. . .

• Petroleum Contractor

• Multinational Corporation

• Resident Foreign Corporation

• Nonresident Foreign Corporation

Which of the following corporations shall pay a tax equal to twenty five percent (25%) of the gross income received during each taxable year from all sources within the Philippines?

• Nonresident Foreign Corporation

• Domestic Corporation

• Resident Foreign Corporation

• Joint Venture

Aside from the ordinary corporate income tax of 25%, what other tax(es) may be imposed on corporations under the Philippine income tax laws?

• Minimum corporate income tax

• Capital gains tax

• Passive income tax

• All of the above

The following passive income received by a domestic corporation shall be subject to 20% final withholding tax, except:

• Interest income from peso bank deposit

• Yield from deposit substitutes

• Dividend income from another domestic corporation

• Royalties

As a rule, there is no income tax if there is no income. Which of the following is the exception?

• Regular Corporate Income Tax

• Capital Gains Tax on sale of land and/or building

• Capital Gains Tax on sale of share of stock outside the local stock exchange

• Tax on passive income

Mabuhay, Inc., a Philippine corporation, sold through the local stock exchange 10,000 PLDT shares that it bought 2 years ago. In 2022, Mabuhay sold the shares for P2 million and realized a net gain of P200,000. How shall it pay tax on the transaction?

• It shall declare a P2 million gross income in its income tax return, deducting its cost of acquisition as an expense

• It shall report the P200,000 in its corporate income tax return adjusted by the holding period

• It shall pay a tax of 1/2 of 1% of the P2 million gross sales

• It shall pay a tax of 6/10 of 1% of the P2 million gross sales

It is important to know the sources of income for tax purposes, i.e., from within and without the Philippines, because:

• Some individual and corporate taxpayers are taxed on their worldwide income while others are taxable only from sources within the Philippines

• The Philippines impose income tax only on income from sources within

• Some individual taxpayers are citizens while other are aliens

• Export sales are not subject to income tax