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WorksheetsShort Quiz - Income Taxation
Total questions: 10
Worksheet time: 5mins
A Filipino Citizen is a natural person who is/has
I. Born by birth with father and/or mother as Filipino Citizens
II. Born before January 17, 1973 of Filipino mother who elects Philippine citizenship upon reaching the age of majority.
III. Acquired Philippine citizenship after birth (naturalized) in accordance with Philippine laws).
I only
I and II only
I and III only
I, II and III
Individual taxpayers are
I. Natural persons with income derived within the territorial jurisdiction of a taxing authority.
II. Natural persons classified as citizens and aliens.
I only
II only
I and II
None of the above
Bu-dhoy, a Mongolian national, arrived in the Philippines on January 1, 2018 to visit his Filipina girlfriend. He planned to stay in the country until December 31, 2020, by which time he would go back to his legal wife in Mongolia. Bu-dhoy derived income during his stay here in the Philippines. For 2018 taxable year, Bu-dhoy shall be classified as a:
Resident alien
Non-resident alien engaged in trade or business in the Philippines
Non-resident alien not engaged in trade or business in the Philippines
Special alien employee
Due to his expertise, Engr. Pedro D. Magiba ( a freelancer) was hired by a foreign petroleum contractor in Thailand to provide technical assistance for two months from February to March. He was hired again for the months of June-July and October-December of the same taxable year. Engr Pablo D. Magiba is a:
Resident Citizen
Nonresident Citizen
Special Filipino employee
None of the above
Rihanna, an American singer, was engaged to sing for one week at the Western Philippine Plaza after which she returned to USA. For income tax purposes, she shall be classified as:
Resident alien
Nonresident alien engaged in trade or business
Nonresident alien not engaged in trade or business
Resident citizen
It is important to know the source of income for income tax purposes (i.e. from within and without the Philippines) because:
Some individuals and corporate taxpayers are taxable based on their worldwide income while others are taxable only on their income from sources within the Philippines
The Philippines imposes 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
Individual taxpayers are subject to the following income tax:
I. Basic tax based on graduated tax table
II. Final withholding tax on passive income derived from sources within the Philippine
III. Capital gains tax
IV. Stock transaction tax of 6/10 of 1% of gross selling price
I and II only
I and III only
I, II and III only
Al of the above
The following taxpayers who received a dividend income from a domestic corporation will receive net of 10% final withholding tax, except:
Resident citizen
Non-resident citizen
Resident alien
Non-resident alien engaged in trade or business
Which of the following sale transactions will be subject to capital gains tax?
Sale of shares of stock by a dealer in securities
Sale of shares of stock during an Initial Public Offering
Sale of shares of stock not through the local stock exchange by a person who is not a dealer in securities
Sale of share of stock through the local stock exchange by a person who is not a dealer in securities
Which of the following statements is true?
Interest income from a foreign currency depository unit in the Philippines of a non-resident alien is not subject to final tax
Prizes exceeding P10,000 derived by non-resident alien not engaged in trade or business here in the Philippines is subject to a final tax of 20%
Share in earnings received by non-resident alien from a domestic partnership is subject to basic tax
All of the above
