[Progress Check-004.1] Principles of Income Taxation

Match the following

• Place of sale

• Sale of services

• Residence of income payor

• Interest Income

• Place where it is performed

• Sale of real property

• Location of property

• Royalty Income

• Place of use

• Sale of personal property

In dividends, if it is received from a ​ (a)   , it is earned within the Philippines. However, if it is earned from a ​ (b)   , the pre-dominance test shall be used.

• DC
• RFC or NRFC
• RFC
• NRFC
• DC, RFC, or NRFC

Classify if the following items are taxable or not is the taxpayer is a Resident Foreign Corporation.

Groups:

(a) Taxable

,

(b) Exempt

• Gain from sale of DC shares

• Interest from foreign bank

• Interest from RFC

• Sale of goods

• Sale of land in Japan

• Dividends from an RFC

On December 29, 2024, a foreign corporation declared cash dividends to their shareholders. The date of record is January 5, 2025, and the payout date is January 20, 2025. If one of their shareholders is a Philippine taxpayer, what variables will be used in applying the pre-dominance test?

Groups:

(a) Included

,

(b) Excluded

• 2025 foreign gross income

• 2022 PH gross income

• 2023 foreign gross income

• 2022 world net income

• 2024 PH gross income

• 2021 world gross income

Match the following

• exchange has taken place

• Economic Benefit Test

• Net worth

• Severance Test Theory

• right to income or liability

• Realization Principle

• gains are separated from the capital

• All-Events Test

• legal claim

• Claim of Right Doctrine

This tax system involves applying a singular tax rate on all items of income after deducting allowable expenses.

• Income Tax

• Unitary System

• Schedular System

• Semi-global, semi-schedular system

Which of the following is not an income tax?

• Capital Gains Tax

• Donor's Tax

• Fringe Benefit Tax

• Branch Profit Remittance Tax

Which of the following is a characteristic of an income tax?

• Indirect Tax

• Ad valorem tax

• Excise Tax

• Local Tax

Determine if the following pertains to capital or income

Groups:

(a) Capital

,

(b) Income

• Return of

• Fruit

• Return on

• Employee labor

• Realized

• Purchase price of supplies

• Taxable

• Investment