Business Tax Quiz

Business taxes are generally based on:

• Net taxable income

• Gross sales or gross receipts

• Net profit

• Cost of goods sold

An onerous transfer refers to a transfer:

• Without consideration

• With consideration

• Between related parties

• Of real property only

A gratuitous transfer is:

• Subject to business tax

• Subject to income tax only

• Not subject to business tax but subject to transfer taxes

• Subject to both business and income tax

Isolated transactions by residents are:

• Always subject to VAT

• Not in the course of trade or business

• Subject to percentage tax only

• Considered final withholding VAT

Services rendered in the Philippines by non-resident persons are treated as:

• Exempt from VAT

• In the ordinary course of trade or business

• Gratuitous transfers

• Not subject to any business tax

Which of the following is not a type of business tax in the Philippines?

• Value-Added Tax (VAT)

• Percentage Tax

• Estate Tax

• Excise Taxes

Under VAT rules, a transaction already subject to VAT should not also be subject to:

• Percentage Tax

• Excise Tax

• Income Tax

• Donor’s Tax

VAT is a tax on the value added by every seller and is levied on:

• Net income

• Sale, barter, exchange or lease of goods and services

• Importations only

• Donations and gifts

The cross border doctrine means that:

• VAT is imposed on exports

• No VAT on goods destined for consumption outside the Philippines

• VAT applies only to imported goods

• VAT rate is higher for cross-border services

Which of these is not a kind of VAT?

• VAT on sale of goods

• VAT on importation of goods

• VAT on sale of services

• VAT on gratuitous transfers