WorksheetsSpecial Income Taxation
Total questions: 20
Worksheet time: 12mins
Long-term deposits or investment certificates with a maturity of not less than 5 years, the form of which shall be prescribed by the BSP and issued by banks only are exempt from final tax.
TRUE
FALSE
As a general rule, interest income of short-term deposits with banks are subject to
20% Final Tax
Exempt
Regular Income Tax
Depends on maturity
Which of the following statement is incorrect.
The 19-lender rule does not apply to government securities like Treasury Bills, Treasury Bonds and Treasury Notes.
To be considered as deposit substitute, the 19-lender rule shall apply where public means maximum of 20 corporate lenders at any one time.
The final tax from interest income in zero coupon instrument or securities shall be withhold upon origination.
The final tax from interest income in interest-bearing instrument or securities shall be withhold upon payment of interest.
Which of the following pre-termination final tax is incorrect
Less than 3 years - 20%
3 years to less than 4 years - 15%
4 years to less than 5 years - 5%
5 years or more - Exempt
In order to claim for final tax exemption on long-term investment, it is also mandatory that (choose the incorrect one)
The investment of individual investor in the common or individual trust fund or investment management account must be held/managed by the bank for at least 5 years.
The underlying investments of the individual trust account or investment management account must qualify as deposit substitute issued by a bank.
The investment of individual investor in the common or individual trust fund or investment management account must be held/managed by the bank for less than 5 years.
The individual trust account or investment management account must be hold on to such underlying investment for at least 5 years.
For joint account of resident and non-resident on forex deposit, 50% of the interest shall be exempt and 50% shall be subject to 15% final tax.
TRUE
FALSE
The following are Interest income subject to regular tax, except
Investment in corporate bonds
Domestic sources, whether bank or non-bank
Lending activities, whether or not in the course of business
Penalty for legal delay or default
Which of the following is considered as return of capital, hence, not taxable.
Liquidating dividend
Scrip dividend
Cash dividend
Property dividend
Royalties on books sold on e-copies or compact disks are subject to
10% Final Tax
Regular Income Tax
Exempt
20% Final Tax
Which of the following is incorrect
Individuals are subject to 20% final tax if they received prize exceeding P10,0000
Prizes received by corporations are subject to RIT.
PCSO winnings are exempt from final tax.
Tax informer's reward is subject to 10% final tax.
A depreciable asset is an ordinary asset even if it is fully depreciated, or there is a failure to take depreciation during the period of ownership.
TRUE
FALSE
Capital gains from capital assets as a general rule is subject to what tax schemes?
Capital Gains Tax
Regular Income Tax
Final Income Tax
Special Income Tax
Sale of domestic stocks though PSE is subject to
Stock transaction tax of 0.6%
Capital gain tax of 15%
Stock transaction tax of 50% of 1%
Capital gain tax of 6%
The 6% CGT on land shall be based in whichever is higher between (choose all applicable)
Selling price
Zonal value
Cost of property
Fair market value
Only real property inside the Philippines is subject to 6% CGT whether the taxpayer is individual or domestic corporation.
TRUE
FALSE
A corporate seller of real property capital assets has the option to be taxed either 6% CGT or RIT if the buyer is the government, its instrumentalities or agencies including GOCCs.
TRUE
FALSE
6% CGT shall be filed using BIR Form 1706 and is due 30 days from
The date of sale or exchange (general rule)
The expiration of the applicable statutory redemption period (for foreclosure sales)
upon receipt of every installment (for 6% CGT under installment payment)
All of the answers are correct
Persons not Liable to the 15% Capital Gains Tax
Dealers in securities
Investors in shares of stocks of mutual fund company
Qualified employee trust funds
All of the answers are correct
BIR Form to be used in filing transactional 15% capital gains tax from sale of domestic stocks directly to buyer.
1707
1707A
1706
1707T
BIR Form to be used in filing 6% capital gains tax from sale of real properties locate in the Philippines
1707
1707A
1706
1706A
