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WorksheetsTDOA Activity: Income Taxation for Corporation
Total questions: 20
Worksheet time: 10mins
Which of the following is not treated as corporation?
General professional partnership
A joint venture or consortium formed for the purpose of undertaking construction projects
A joint or consortium for engaging in petroleum, coal, geothermal and other energy operations pursuant to an operating consortium agreement under a service contract with the government
All of the above
Which of the following is subject to income tax?
Philippine Amusement and Gaming Corporation (PAGCOR)
Local Water Districts
SSS and GSIS
Philippine Health Insurance Corporation (PHIC)
Which of the following is taxable based on income from all sources, within and without?
All of the choices
Domestic Corporations
Resident Foreign Corporations
Non-resident Foreign Corporations
The term applies to a foreign corporation engaged in trade or business in the Philippines. . .
Petroleum Contractor
Multinational Corporation
Resident Foreign Corporation
Nonresident Foreign Corporation
Which of the following corporations shall pay a tax equal to twenty five percent (25%) of the gross income received during each taxable year from all sources within the Philippines?
Nonresident Foreign Corporation
Domestic Corporation
Resident Foreign Corporation
Joint Venture
Aside from the ordinary corporate income tax of 25%, what other tax(es) may be imposed on corporations under the Philippine income tax laws?
Minimum corporate income tax
Capital gains tax
Passive income tax
All of the above
The following passive income received by a domestic corporation shall be subject to 20% final withholding tax, except:
Interest income from peso bank deposit
Yield from deposit substitutes
Dividend income from another domestic corporation
Royalties
As a rule, there is no income tax if there is no income. Which of the following is the exception?
Regular Corporate Income Tax
Capital Gains Tax on sale of land and/or building
Capital Gains Tax on sale of share of stock outside the local stock exchange
Tax on passive income
Mabuhay, Inc., a Philippine corporation, sold through the local stock exchange 10,000 PLDT shares that it bought 2 years ago. In 2022, Mabuhay sold the shares for P2 million and realized a net gain of P200,000. How shall it pay tax on the transaction?
It shall declare a P2 million gross income in its income tax return, deducting its cost of acquisition as an expense
It shall report the P200,000 in its corporate income tax return adjusted by the holding period
It shall pay a tax of 1/2 of 1% of the P2 million gross sales
It shall pay a tax of 6/10 of 1% of the P2 million gross sales
It is important to know the sources of income for tax purposes, i.e., from within and without the Philippines, because:
Some individual and corporate taxpayers are taxed on their worldwide income while others are taxable only from sources within the Philippines
The Philippines impose income tax only on income from sources within
Some individual taxpayers are citizens while other are aliens
Export sales are not subject to income tax
Interest income on bank deposit or investment with maturity period of at least five (5) years received by a corporation is subject to:
DC: Exempt; RFC: Exempt; NRFC: Exempt
DC: 20%; RFC: 20%; NRFC: Exempt
DC: 20%; RFC: 20%; NRFC: 25%
DC: 20%; RFC: Exempt; NRFC: Exempt
Royalty income from books received by a corporation beginning January 1, 2018 or upon effectivity of the TRAIN Law shall be subject to:
DC: 10%; RFC: 10%; NRFC: 30%
DC: 20%; RFC: 20%; NRFC: 30%
DC: 15%; RFC: 15%; NRFC: Exempt
DC: 15%; RFC: 7 1/2%; NRFC: Exempt
A domestic corporation was registered with the BIR in 2018. What year would the first MCIT will be imposed on such corporation?
2022
2019
2020
2021
The minimum corporate income tax is imposed on:
Proprietary educational institutions
General professional partnerships
Corporation
All of the above
Which of the following statements is incorrect?
Private educational corporations are subject to income tax based on the net income from sources within the Philippines at the tax rate of 10%
Nonresident foreign corporations are subject to income tax based on gross income from sources within the Philippines
Domestic corporations are subject to income tax based on net income from all sources
Resident foreign corporations are subject to income tax based on net income from sources within the Philippines
Which statement is wrong? The gross income tax:
Is optional to a qualified corporation
Available only if the ratio of the cost of sales does not exceed fifty-five percent of the gross sales or receipts from all sources
Is always computed to compare with the normal income tax and minimum corporate income tax
The choice shall be irrevocable for three consecutive years that the corporation is qualified under the scheme
A domestic proprietary educational institution improved its library facilities by adding a new wing to its old library building. The capital outlay on library improvement, for income tax purposes, may be:
Capitalized or expensed outright at the option of the school owners
Deducted at full at the time of completion of the improvement
Capitalized and depreciated over the estimated life of the improvement
Capitalized or expensed outright at the option of the Government
The Royale Air Corporation is an international carrier doing business in the Philippines. Its taxable base for income tax purposes is-
Allocation of income from sources within and without the Philippines, as well as expenses
Regular rate of 30% of its net taxable income
Gross Philippine Billings minus deductible expenses
Gross Philippine Billings
The following are excluded in the "Gross Philippine Billings" for income tax purposes of an international air carrier, except:
Tickets sold outside the Philippines for passengers originating from outside the Philippines
Passage documents sold outside the Philippines for excess baggage originating from the Philippines
Tickets sold in the Philippines for passengers originating from the Philippines but are not actually flown
Passage documents sold in the Philippines for cargoes originating from outside the Philippines
A tax imposed in the nature of a penalty to the corporation to prevent the scheme of accumulating income rather than distribute the same to the stockholders for the purpose of avoiding tax on dividends.
Minimum corporate income tax
Optional corporate income tax
Improperly accumulated earnings tax
Capital gains tax
