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Taxpayers & Income Overview

Total questions: 25

Worksheet time: 23mins

Name
Class
Date
1.

What is the proper classification of Overseas Filipino Workers?

a)

NRC

b)

RC

c)

RA

d)

NRA-ETB

e)

NRA-NETB

2.

Which of the following is not considered a Filipino citizen?

a)

born in the Philippines from Japanese parents visiting the country for leisure

b)

born in Germany from a German father and a Filipino mother

c)

born in the USA from an American father and a Filipino mother

d)

Indian by origin but 'naturalized' 2 years ago

3.

In computing for the taxable income, all except one uses net income as the base. Which is the exception?

a)

NRA-NETB

b)

NRA-ETB

c)

RA

d)

RC

e)

NRC

4.

All of the following are classifications of taxpayers, except for one.

a)

Non-alien citizen

b)

Non-alien citizen

c)

Non-resident citizen

d)

Resident alien

5.

Which among the following is a non-resident alien?

a)

an alien who comes to the Philippines for a definite purpose which in its nature may be promptly accomplished

b)

an alien who comes to the Philippines for a definite purpose which in its nature would require an extended stay

c)

an alien who has acquired residence in the Philippines

d)

an alien who lives in the Philippines with no definite intention as to his stay

6.

Who among the following individual taxpayers is taxable on income within and without?

a)

Peter, a native of General Santos, working as an OFW in Iraq.

b)

Rudy, a naturalized Filipino citizen and married to a Filipina. He had been living in Olongapo since 1980.

c)

Marco, a Spanish citizen, a resident of Madrid, Spain, spent one week vacation trip in Boracay

d)

Lee, a Taiwanese singer, held a 3-day concert in Manila

7.

All of the following, except one, are taxable on income within only.

a)

resident citizen

b)

non-resident citizen

c)

resident alien

d)

non-resident alien

8.

A non-resident alien not engaged in trade or business is:

a)

an alien who have business income derived in the Philippines

b)

an alien who have no business income derived in the Philippines

c)

an alien who stayed in the Philippines for more than 180 days

d)

an alien living in the country with no definite intention as to his stay

9.

Income from employment is subject to what type of tax?

a)

graduated tax rate

b)

final withholding tax

c)

capital gains tax

10.

Interest earned from your bank account is subject to what type of tax?

a)

final withholding tax

b)

capital gains tax

c)

graduated tax rate

11.

Capital gains from sale of shares of stock of a domestic corporation not traded in the local stock exchange is subject to what percentage of tax rate? Assume the taxpayer in an NRA-NETB.

a)

15%

b)

6%

c)

25%

d)

Exempt

12.

A non-resident citizen won P10,000 from a PCSO Lotto. The P10,000 is:

a)

exempt from tax

b)

subject to 25% tax

c)

subject to 20% tax

d)

subject to 10% tax

13.

These are natural persons with income derived from within and without the territorial jurisdiction of a taxing authority.

a)

individual taxpayers

b)

citizens

c)

alien

d)

income taxation

14.

Mr. A is an OFW who arrived in the Philippines last August 1, 2020 after 5 years of work in the United Kingdom. For purposes of tax computation, what is his classification on July 2020?

a)

NRC

b)

RC

c)

RA

d)

NRA

15.

Mr. B is a Filipino citizen who will be migrating in Canada on April 1, 2021. Assuming his flight is cancelled and he was able to fly to Canada September of 2021, for tax computation purposes, what will be his classification as of April 2021?

a)

RC

b)

NRC

c)

RA

d)

NRA

16.

Overseas Contract Workers are

a)

Filipino citizens residing abroad by virtue of their employment

b)

Filipino citizens working in the Philippines

c)

foreign citizens residing abroad by virtue of their employment

d)

foreign citizens working in the Philippines

17.

For a non-resident citizen to be considered an OFW, (s)he should be registered with which government agency?

a)

POEA

b)

DTI

c)

BIR

d)

DOF

18.

Is it possible for a US citizen to become a Filipino citizen?

a)

Yes, by naturalization

b)

Yes, if (s)he is born in the Philippines

c)

No, his/her citizenship cannot be changed

d)

Yes, if he lives in the Philippines long enough

19.

Which is true of a non-resident alien?

a)

NRA-ETB has business income earned in the Philippines

b)

NRA-ETB is taxable for income earned abroad

c)

NRA-NETB has business income earned in the Philippines

d)

the length of stay of a non-resident alien matters in proper classification

20.

A taxpayer is earning P400,000 in the Philippines and P205,000 in Netherlands. For both amounts to be taxable, (s)he should be classified as a

a)

resident citizen

b)

resident alien

c)

Filipino citizen

d)

non-resident citizen

21.

All taxpayers, except for one, are taxable only on income derived from sources outside the jurisdiction of the Philippines. Which is the exception?

a)

resident citizen

b)

non-resident citizen

c)

resident alien

d)

Filipino citizen

22.

In determining the taxable income of a non-resident alien not engaged in trade or business, all of the following are not important, except?

a)

other than business income

b)

business income

c)

expenses

d)

net income

23.

Statement 1: A resident alien is taxable on income within and without the Philippines.

Statement 2: A resident citizen is taxable on income without the Philippines.

a)

Statement 2 is correct

b)

Statement 1 is correct

c)

Both statements are correct

d)

Both statements are incorrect

24.

Statement 1: A non-resident citizen is taxable on income derived outside the Philippines.

Statement 2: A non-resident alien is taxable on income derived outside the Philippines.

a)

Both statements are incorrect

b)

Both statements are correct

c)

Statement 1 is correct

d)

Statement 2 is correct

25.

Mr. A, Filipino, is a composer and is receiving income from his musical compositions. What type of tax will his earnings from musical composition be subject to?

a)

final withholding tax

b)

capital gains tax

c)

regular tax

d)

basic tax