FABM2

domestic corporations with net taxable income not exceeding P_______ million and with total assets not exceeding P______ million, excluding land on which the particular business entity’s office, plant, and equipment are situated, shall be taxed at 20%.

• 50 & 10

• 5 & 100

• 1 & 500

• 50 & 100

The MCIT for foreign corporations not engaged in trade or business in the Philippines (non-resident foreign corporation) is also lowered from 30% to 25% of gross income effective Jan. 1, 2021.

• TRUE

• FALSE

CREATE repealed the imposition of improperly accumulated earnings tax under Section 39 of the National Internal Revenue Code (NIRC).

• TRUE

• FALSE

CREATE lowered the regular corporate income tax (RCIT) for domestic and foreign corporations engaged in trade or business within the Philippines (resident foreign corporations) from _____% to 25% of taxable income effective July 1, 2020.

• 35%

• .30%

• 30%

• 32%

I. To calculate the MCIT, corporations must divide their gross income by 12 months to obtain the average monthly gross income.

II. v From January 10 to June 30, 2023, the rate applied is 1%, while from July 1 to December 31, 2023, the rate is 2%.

• Only statement I is true

• Neither of the two statement is correct

• Either of the two statements is correct

• Only statement 2 is correct