Basic Income Taxation and Other Business Taxes Quiz

Mr. T's building with a book value of 2,000,000 was razed by fire. The insurance company paid T 1,400,000 for damages. The 1,400,000 proceeds is

• taxable in full

• partly reportable income and partly income subject to final tax

• tax exempt

• subject to final tax

The principal amount of time deposit in the bank (point of view of depositor) is an/a

• revenue

• receipt

• capital

• income

All of the following are inherent limitations on the exercise of taxation power, EXCEPT

• Rule of Uniformity

• International comity

• Public purpose

• Territorial jurisdiction

Which of the following is a taxable income?

• Member's SSS contribution

• SSS sickness benefits

• excess of de minimis benefits + 13th month pay, aggregated amount is 30,000

• Passive income earned by a resident citizen from sources outside the Philippines

Which of the following is not a compensation income?

• Overtime pay

• Allowances

• Retirement pay

• Professional fees

For the life insurance premium paid by the employer to be included as gross income of employee, the designated beneficiary should be

• The insured person

• Employer

• A family member of the insured

• A religious organization

Which of the following income earned/received in the Philippines by a citizen is subject to income tax?

• winnings in Philippine Charity Sweepstake Lottery

• Value of property received as gift

• Gains from sale of a 3-year bond

• SSS or GSIS benefits

What is the tax rate of Value Added Tax in the Philippines?

• 2%

• 5%

• 10%

• 12%

Which of the following is a taxable compensation income?

• Terminal pay by fact of death

• Separation pay due to resignation

• Retirement pay under BIR approved retirement plan

• Unused vacation leave credits of 10 days or less

• Separation pay due to disability

Atty. Ruth Cal received a second-hand car from his employer Jihad Law Office for successfully defending a criminal case. The car has a cost of 400,000 and its accumulated depreciation amounts to 300,000. The prevailing market value of the car of the same model is 120,000, but the new model is 500,000. How much is the reportable income of Atty. Cal?

• 500,000

• 200,000

• 120,000

• 100,000

• 400,000