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InTax Midterm

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

_______________ is when the tax due is higher than creditable withholding tax.

a)

tax refundable

b)

withholding tax

c)

tax receivable

d)

tax payable     

2.

At what tax rate is the net taxable income subjected to?

a)

33-40%

b)

0-32%

c)

50%

d)

45%

3.

Which among the following describes 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 lives in the Philippines with no intention to stay

c)

an alien who stayed in the Philippines for more than 2 years

d)

an alien who visits the Philippines for a purpose and was required to extend his

4.

Certificate given to the employee by the employer that shows the income tax that was remitted to the BIR. It is also known as the Certificate of Final Income Tax Withheld.

a)

BIR Form 2036

b)

BIR Form 2306

c)

BIR Form 2304

d)

BIR Form 2046

5.

In a business, they have an option to claim an optional standard deduction (OSD) or itemized deduction. If they chose the OSD, the amount to be deducted in their gross income shall be _____.

a)

10%           

b)

20%    

c)

40%

d)

30%    

6.

An overseas contract worker as well as a Filipino seaman who receives compensation for services rendered abroad as a member of the complement of a vessel engaged exclusively in international trade, are considered as _________.

a)

resident citizens

b)

resident aliens

c)

non-resident aliens

d)

non-resident citizens

7.

Republic Act No. ______ is an act amending the national internal revenue code, as amended, and for other purposes.

a)

RA 8442         

b)

RA 8224         

c)

RA 8422

d)

RA 8424

8.

What are the different kinds of individual income taxpayers?

a)

Employees and Self-Employed

b)

Partner in a general professional partnership

c)

Estate and Trust

d)

All of the above

9.

Which of the statements below is/are correct?

a)

To claim itemized deductions, self-employed individuals must present official receipts for their expenses.

b)

All businesses can choose from any of the allowable deductions. However, the 40% optional standard deduction is usually recommended for businesses with high income and low expenses, such as rental businesses.

c)

Unlike self-employed individuals and partners in a General Professional Partnership, the estate and trust are only entitled to a personal exemption of ₱20,000, with no additional exemptions.

d)

All of the above

10.

Mika is a citizen who was previously classified as a non-resident. She arrived in the Philippines in April of the fiscal year 2022 and decided to stay permanently. How will her income be taxed beginning in May 2022?

a)

Mika will only be taxed on income earned in the Philippines for May and the ensuing months.

b)

Mika's income from domestic and international sources for May and subsequent months will be taxed.

c)

Mika's income from domestic and international sources for May and subsequent months will be taxed.

d)

Mika will only be taxed on income derived from sources outside the Philippines for May and the following months.