CBT Quiz

Under the CREATE Act, a domestic market oriented enterprise can enjoy the following incentives except:

• Duty exemption on importation of capital equipment, raw materials, spare parts, or accessories

• 4-7 years Income Tax Holiday (ITH)

• VAT exemption on importation and VAT-zero rating on local purchases

• Enhanced Deductions

This is a type of foreign direct investment wherein the firm will invest in the same business as the firm does in their own countries.

• Portfolio

• Horizontal

• Vertical

• Conglomerate

Which among these is considered as a Public Utility under the Amended Public Service Act (PSA)?

• Telecommunication

• Airports

• Seaports

• Air Carriers

The following are open for 100% Foreign Equity under the Amended Public Service Act (PSA) except:

• Telecommunication

• Airports

• Seaports

• Air Carriers

An export enterprise is redefined under the Amended Foreign Investments Act (FIA) as any company that exports at least how many percent of its production?

• 60%

• 70%

• 80%

• 100%

This is a type of foreign direct investment wherein the firm will form a different but related business to the firm's main business?

• Conglomerate

• Vertical

• Horizontal

• Portfolio

Under the Amended Retail Trade Liberalization Act (RTLA), the capital requirement of a retail enterprise is lowered from USD $2.5M to

• Php 25M

• Php 50M

• Php 75M

• Php 100M

The Strategic Investment Priority Plan (SIPP) contains the list of priority industries that are for investment promotion and which will be eligible for fiscal and non-fiscal incentives. Which of the following is NOT included in the SIPP?

• Mining

• Hospitals

• Supermarkets

• Amusement Parks

A domestic corporation with 40% foreign equity is considered as a foreign corporation. True or False

• True

• False

Under the SIPP, how many years of Income Tax Holiday will a Tier 1 export-oriented project located outside a metropolitan area enjoy?

• 4

• 5

• 6

• 7