When will an inherited property be considered as owned by an unregistered partnership?

I. When the property remained undivided for more than ten (10) years.

Il. When no attempt was ever made to divide the same among the co-heirs, nor was the property under administration proceedings nor held in trust

Pedro, Juan, and Antonio are heirs of Luna who died on November 1, 2018. The properties of Luna comprised solely of real property valued at P50,000,000 at the time of his death. The property is subject to lease earning rental income. During 2019, the property remained undivided and it derived a net rental income of P15,000,000.

For income tax purposes, the heirs will be tax on net rental income from the inherited property for the year 2019 as:

Pedro, Juan, and Antonio are heirs of Luna who died on November 1, 2018. The properties of Luna comprised solely of real property valued at P50,000,000 at the time of his death. The property is subject to lease earning rental income. During 2019, the property remained undivided and it derived a net rental income of P15,000,000.

What amount should be reported as taxable income of the co-ownership in 2019?

Pedro, Juan, and Antonio are heirs of Luna who died on November 1, 2018. The properties of Luna comprised solely of real property valued at P50,000,000 at the time of his death. The property is subject to lease earning rental income. During 2019, the property remained undivided and it derived a net rental income of P15,000,000.

What amount should each heir report in their individual returns as their share in the net rental income of the property they inherited in 2019?

Income received by the estate during the period of administration or settlement of the state, for tax purposes is known as

Statement 1: Where the estate is under judicial administration, the income of the estate shall be taxable to the fiduciary or trustee.

Statement 2: Where the estate is not under judicial administration, the income of the estate shall be taxable to the heirs and beneficiaries.

Statement 1: The amount of income of the estate for the taxable year, which is property paid or credited during such year to any legatee, heir, or beneficiary, is a special item of deduction from the gross income of the estate.

Statement 2: An allowance paid to a widow or heir out of the corpus of the estate, is not deductible from the gross income of the estate.

Statement 1: When an estate, under administration, has income-producing properties,

the annual income of the estate becomes part of the taxable gross estate.

Statement 2: When an estate, under administration, has income-producing properties and its income during the year is distributed to the heirs, the income so distributed is taxable to the heirs as part of their gross income for the year.

The following statements refer to the rules in determining the taxable income and the applicable income tax liability of an estate. Which of the statements is correct?

I. The items of gross income of the estate are the same items as the items of gross income of individual taxpayers.

ll. Deductions from the gross income of the estate are the same as the items of deductions allowed to an individual taxpayer.

Ill. In addition to the allowable deductions under Section 34 of the Tax Code, the estate is allowed to deduct the amount of income of the estate during the taxable year that is paid or credited to the legatee, heir or beneficiary.

IV. The amount of income of the estate during the year that is paid or credited to the legatee, heir or beneficiary is subject to final withholding tax of 15%.

Which of the following is included in the income of the estate of a decedent?

Namahinga Nah died leaving an estate worth P10,000,000. The estate is under administration. In 2020, the properties in the estate earned a gross income of P1,200,000 and the estate incurred expenses of P600,000. Felipe, the only heir, received P200,000 from the income of the estate.

How much is the income tax due of the estate?

Namahinga Nah died leaving an estate worth P10,000,000. The estate is under administration. In 2020, the properties in the estate earned a gross income of P1,200,000 and the estate incurred expenses of P600,000.

Assume that Felipe, the only heir, received P200,000 from the income of the estate. that Felipe also earned net income of P500,000 from his trading business. What amount should Felipe report as his taxable income for the year?

RA 10963, otherwise known as the Tax Reform for Acceleration and Inclusion Act (TRAIN Law) took effect

The term “Corporation” shall include:

|. One Person Corporation

II. Partnerships, no matter how created or organized

Ill. Joint stock companies

IV. Joint accounts (ceuntas en participacion)

V. Associations

VI. Insurance companies

VIl. Mutual fund companies

VIll. Regional operating headquarters of multinational corporations

________________ are constituted when a group of individuals, acting jointly, establish and operate business enterprise under an artificial name, with an invested capital divided into transferable shares, an elected board of directors, and other corporate characteristics, but operating without formal government authority.

Which of the following is not treated as corporation?

Statement 1: Partnerships, no matter how created or organized, are taxable as corporations for income tax purposes.

Statement 2: Associations and mutual fund companies, for income tax purposes, are excluded in the definition of corporations.

Which of the following is not a taxable corporation.

Which is not a characteristic of corporate income tax:

Which of the following is subject to income tax?

One of the following is exempt from income tax

Statement 1: Corporations exempt from income tax are not subject to income tax on incomes received which are incidental or necessarily connected with the purposes for which they were organized and operating.

Statement 2: Corporations exempt from income tax are subject to income tax on income of whatever kind and character from any of their properties (real or personal) or from any other activity conducted for profit, regardless of the disposition of such income.

Which of the following statements is incorrect? “Joint Stock Companies” are constituted when a group of individuals, acting jointly, establish and operate business enterprise

It is important to know the sources of income for tax purposes, i.e., from within and without the Philippines, because:

Which of the following statements is correct?

The term “domestic”, when applied to a corporation, means created or organized in the Philippines or under the laws of a foreign country as long as it maintains a Philippine branch.

II. A corporation which is not domestic may be a resident (engaged in business in the Philippines) or nonresident corporation (not engaged in business in the Philippines).

III. Resident foreign corporations are subject to income tax based on net income from sources within the Philippines.

Statement 1: Non-resident foreign corporation applies to a foreign corporation engaged in trade or business within the Philippines.

tatement 2: Resident foreign corporation applies to a foreign corporation not engaged in trade or business in the Philippines.

Which of the following is taxable based on income from all sources, within and without?

The term applies to a foreign corporation engaged in trade or business in the Philippines.

Which of the following does not have the benefit of claiming deductions in computing income tax?

Which of the following corporations shall pay a tax equal to thirty percent (30%) of the gross income received under the TRAIN Law and twenty five percent (25%) upon effectivity of CREATE, from all sources within the Philippines?

Aside from the regular corporate income tax, what other tax(es) may be imposed on corporations under the Philippine income tax laws?

Matatag Corporation , a domestic corporation and a retailer of goods has gross sales of 14,000,000 with a cost of sales of P7,600,00 and allowable deductions of 2,500,000 for the calendar year 2021. Its total assets of P150,000,000 as of December 31, 2021 per Audited Financial Statements includes the land costing P40,000,000 and the building of P 30,000,000 in which the business entity is situated , with an aggregate amount of P70,000,000 as fixed assets. How much is the income tax due in 2021?

Which of the following statements is correct?

I. A minimum corporate income tax(MCIT) of 1% of gross income from July 1, 2021 to June 30, 2023 and 2% beginning July 1, 2023 is imposed upon any domestic corporation and resident foreign corporation beginning on the 4th taxable year immediately following the taxable year in which such corporation commenced its business operations.

II. MCIT shall be imposed whenever such corporation has zero or negative taxable income, or when the amount of MCIT is greater than normal income tax due from such corporation .

III. The computation and payment of MCIT =, shall likewise apply at the time if filing the quarterly corporate income tax.

It is a term for when a taxing authority, usually a government, levies or imposes a tax.

Governments impose income taxes on financial income generated by all entities within their jurisdiction, including individuals and businesses.

A type of tax levied on individuals who inherit the estate of a deceased person.

It is a tax withheld by employers from each employee's salary and is paid to the government.

Statement 1: Shifting and tax avoidance are examples of tax avoidance that do not result to loss of government revenue

Statement 2: There are means available to the taxpayer to limit or avoid the impact of taxation

Which of the following is not a constitutional limitation of the power to tax?

The benefit-received theory is based on what principle?

The imposition of tax is

Select the incorrect statement.

Hananiah Corporation , a corporation engaged in business in the Philippines and abroad has the following data for 2021 taxable year

Gross income , Philippines. P975,000

Expenses , Philippines P750,000

Gross Income Malaysia. P7700,000

Gross Expenses Malaysia. P630,000

Interest on bank deposit. P25,000

Assets P 15,000,000

Determine the income tax assuming that the corporation is domestic.

Hananiah Corporation , a corporation engaged in business in the Philippines and abroad has the following data for 2021 taxable year

Gross income , Philippines. P975,000

Expenses , Philippines P750,000

Gross Income Malaysia. P7700,000

Gross Expenses Malaysia. P630,000

Interest on bank deposit. P25,000

Assets P 15,000,000

Determine the income tax assuming that the corporation is Resident Foreign Corporation

Hananiah Corporation , a corporation engaged in business in the Philippines and abroad has the following data for 2021 taxable year

Gross income , Philippines. P975,000

Expenses , Philippines P750,000

Gross Income Malaysia. P7700,000

Gross Expenses Malaysia. P630,000

Interest on bank deposit. P25,000

Assets P 15,000,000

Determine the income tax assuming that the corporation is Non- Resident Foreign Corporation

1. A domestic corporation was registered with the BIR in 2018. What year would the first MCIT will be imposed on such corporation?

1. Prior to the effectivity of CREATE law, MCIT shall apply to which of the following resident foreign corporations?

I. International carrier

II. Offshore banking units on their income from foreign currency transactions with local commercial banks

III. Regional headquarters

The minimum corporate income tax (MCIT) does not apply to a corporation, if

One of the following is not accepted basis for relief from the MCIT:

1. A domestic corporation is generally liable for minimum Corporate Income tax. However, the Secretary of Finance may suspend the imposition of MCIT on any corporation which suffers losses on account of any of the following, except: