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WorksheetsBAC 103 Quiz 4
Total questions: 25
Worksheet time: 12mins
1. Partnerships, no matter how created or organized, are taxable as corporation for income tax purposes.
True
False
2. 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.
True
False
3. A corporation which is not domestic may be a resident (engaged in business in the Philippines) or non-resident corporation (not engaged in business in the Philippines).
True
False
4. Resident foreign corporations are subject to income tax based on net income from sources within the Philippines.
True
False
To avoid double taxation, corporations must reflect dividend share as dividend payment to their shareholders.
True
False
The regular corporate income tax rate is 25% of the gross income.
True
False
6. A minimum corporate income tax (MCIT) of 2% of gross income as of the end of the taxable year is imposed upon any domestic corporation beginning the 4th taxable year immediately following the taxable year in which such corporation commenced its business operations.
True
False
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.
True
False
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
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
Corporations include
partnerships
general professional partnerships
joint consortium for construction projects
joint venture for energy operations under a service contract with the government
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
The taxable income of corporate taxpayer is the
taxable compensation income plus net income from business
net income only
net income from business less personal exemption
net income from business for CIT and gross income for MCIT
Which is NOT an exempt corporations
public cemetery
rural banks
women's club
farmers credit coop
Which is NOT a taxable corporation?
Citibank N. A
UPS, DHL
Manulife
Rockefeller Foundation
What is the rate of tax on net income below 5 million when the assets of the corporation are less than 100 million?
15%
20%
25%
30%
The following are passive income that are subject to final taxation, EXCEPT:
Interest income
Stock dividend income
Royalties
Lotto Winnings
What is the general rate if the taxpayer is NRA-NETB?
10%
15%
20%
25%
The following forms of income shall be subject to a final withholding tax rate of 15% in the hands of a Resident Foreign Corporation Corporation, based on the gross amount thereof. Which is not?
Tax on Branch Remittances
Interest on any currency bank deposit
Interest Income derived from a depository bank under the EFCDS
Capital Gains from sale of shares of stock not traded in the stock exchange
All are subject to 25% CIT, except:
Offshore Banking Unit
Regional Operating HQ of Multi-National Companies
Regional Area HQ of Multi-National Companies
Resident Foreign Corporation
Nicanor and Jose are professional beauticians. They decided to open a Salon and so they registered the partnership with the SEC, the LGU and the BIR. What will be the tax rate to be applied in computing the partnership income?
0% (exempt)
20% or 25%
30%
25% only
If a Domestic Corporation reported a taxable income of Php 5 Million and with asset of Php 20 Million, the Corporate Income Tax rate is
20%
25%
30%
15%
If a Resident Corporation reported a taxable income of PHP 15 Million and with asset of Php 120 Million, the Corporate Income Tax rate is
20%
25%
30%
15%
Temporary reduction of MCIT and other preferential tax rates are only until?
June 30, 2023
June 30, 2024
December 31, 2023
June 30, 2022
Proprietary hospitals with non-related income more than 50% of income from all sources are subject to regular tax rate of
1%
2%
10%
25%
