GROSS INCOME QUIZ

Prizes and awards received shall be exempt from income tax when the following conditions are met, except

 

• It is given in recognition of religious, charitable, scientific, educational, artistic, literary or civic achievement.

• The recipient of the award or prize is not required to render substantial future services as a condition in receiving the prize or award

• The amount of prizes does not exceed P10,000.

   

• The recipient of the award was selected without any action on his part to enter the contest or proceeding.

Which of the following is included in taxable income?

•  

  Retrenchment pay

• Separation pay due to resignation   

• Refund of Philippine Income tax

• SSS/GSIS benefits

X was selected as the most outstanding teacher in her region. Her name was submitted by the school principal without her knowledge. She received a trophy and a cash award of P15,000.

• Exempt from income tax

• Subject to final tax

• Partly taxable, partly exempt

• Taxable income

All income is subject to basic and creditable withholding taxes that include the gains, profits, and income derived from whatever sources, whether legal or illegal.

• Professional Income

• Business Income

• Taxable Income

• Tax Exempt Income

It constitutes the investment which is the source of income.

• Income

• Capital

• Liability

• Assets

The following are classifications of income as to taxability, except

• Special income subject to capital gains taxes

• Passive income subject to final taxes

• Regular income subject to basic tax

• Capital gains subject to capital gains taxes

A ____ dividend, is generally, is not a dividend income.

• Property

• Cash

• Indirect

• Liquidating

Is an award to be given to a person or a group of people to recognize and reward actions for achievements.

• Cash

• Incentives

• Dividends

• Prize

Is a distribution of profit disguised as payment of services, properties,

• Direct Dividend

• Indirect Dividend

• Cash Dividends

• Property Dividends

When different types of income are subjected to common tax rate, the tax system is described as

• Global tax system

• Gross income tax system

• Scheduler tax system

• Final tax system