Font size
WorksheetsTaxation
Total questions: 97
Worksheet time: 50mins
In income taxation in the philippines a taxpayer is being subjected to income tax because of the following reasons except:
it earned from compensation income
It earned from business
It earned from the practice of profession
It earned from foreign currency transactions
Which of the following entities are considered as corporation?
General professional partnerships
Joint ventures or consurtium formed for the purpose of undertaking construction projects for Philippine government
Stock listed in the stock exchange
How much is the present corporate income tax for domestic corporations?
20%
25%
30%
36%
is one in whom confidence is reposed as regards property for the benefit of another person.
Estate
Trustee
Trustor
Beneficiary
Mr. Santos, an employee of 711 earns P350,000 annually. How much is his allowable deduction in computing taxable income
15% from the gross income
P250,000
8% preferential rates
10%
For items to be deducted, the taxpayer should follow the Substantiation Requirements and this is to
submit an income and expense report
submit sufficient official receipts
submit lists of expenses
submit a list of allowable deductions from gross income
Co-Owners are taxed individually on their distributive share in the income of the co-ownership.
True
False
Proceeds of a life insurance policy received by their heir or beneficiary of the insured are not taxable.
True
False
Co-ownership does exist when two or more heirs or beneficiaries inherit an undivided property from a decedent, or when a donor makes a gift of an undivided property in favor of two or more donees.
True
False
Which of the following is the allowable deduction from compensation income effective January 1, 2023?
250,000
15% from the gross income
15% of the excess over P250,000
400,000
Cash and property dividends are taxable and Stock dividends are:
also taxable
not taxable
partially taxable
All of the above
When inherited property remained undivided for more than ____ and no attempt was ever made, the property shall be taxed as _____
10 years, as individual income taxation
10 years; partnership taxation
10 years, corporate taxation
Which of the following income is taxable in the Philippines?
Interest income in the philippines earned by a non-resident alien.
Cash dividend received by a nonresident citizen from a foreign corporation
Salary received for working abroad by a
nonresident citizen
Business income earned in USA by an
American citizens residing in Palawan
Can an individual taxpayer compute his income on the basis of fiscal year?
Yes
No
Maybe
Statement 1: Individuals can only use the calendar year
Statement 2: Corporations can use the fiscal year
Only statement 1 is true
only statement 2 is true
both statements are true
Both statements are not true
Which of the following is NOT exempted from tax?
Government educational institutions
feedmill in agriculture
non-profit organization of farmers
non-profit agricultural organization
It composed of all the property, rights, and obligation of a deceased person which are not extinguished by his death, including those which have accrued there to since the opening of succession.
Estate
Devisee
Trustee
Beneficiary
Which of the following best describes graduated income tax?
seeks to strike a balance between raising revenue for government operations and promoting fairness to individual taxpayers
advantage for those availing 8% preferential rates
to definitely identified the exclusive income of either spouse is equally divided between them
to differential individual taxpayers from professional taxpayers
Which accounting period where expenses are recorded in the period in which they are actually paid?
Cash Accounting
Accrual Accounting
Debit Accounting
Partial Accounting
Up to what amount is allowed for tax exempt received from the 13th month and other benefits?
250,000.00
8% from the gross income
90,000
only amount 90,000 and above
Which of the following instances can't be considered as Short Accounting Period?
Newly Opened Business
Death of the Taxpayer
Started and uses a 12 moth period
Change of accounting period by corporate Taxpayers
An accounting period which starts from January 1 and ends on December 31.
Calendar Period
Fiscal Year
Short Period
A fiscal year is:
Any twelve month period
any twelve month period that begins on the first day of the week.
any twelve month period that begins on the first day of the month.
any twelve month period that begins on the first day of the quarter.
Which of the following is Not considered as necessary and ordinary expenses?
Travel expenses for vacation
Salaries and Wages
Rentals
employers share on SSS, PHIC, and HDMF
If prizes and winnings are generally taxable, what about those granted to athletes?
are generally taxable
are exempted from tax
serve as a gift
It arises when two or more heirs or beneficiaries inherit and undivided property from a decendent, or when a donor makes a gift of an undivided property in favor of two or more donees.
partnership
trust
Joint account
co- ownership
What does TRAIN stands for?
Tax Reform for Acceleration Inclusion Law
Tax Reform for Accredited Internal Law
Tax Revision for Accredited Inclusion Law
Tax Reformat for Acceleration Internal Law
Which of the following is NOT qualified for graduated income tax?
Individual taxpayers
Non-resident alien engaged in trade and business in the Philippines
those subject ot special rate
non individual taxpayers
Individual taxpayers not subject to tax under Section 24(A)
Resident citizens on their net income within and without the Philippines
Resident citizes and resident aliens on their net income within the Philippines
Non-resident aliens engaged in trade or business
Non-resident aliens not engaged in trade or business on their gross income within the Philippines
When do you file your income tax return if your fiscal year ends at June 30?
October 15
September 15
December 15
April 15
When do we say that prizes and winnings are not taxable?
those granted to athletes
prizes from raffle draws
grand prize from tv programs
Which. of the following is taxable based on the income from all sources within and without?
Domestic Corporation
Resident Foreign Corporation
Non-resident foreign corporations
All of the above
Who among the following are qualified to avail of the 8% preferential rate?
a. a taxpayer must signify his intention to elect 8% income rate
b. compensation from employment
c. Professional income earners
d. Single Proprietor
f. a, b, c, d
a non-stock corporation operated exclusively for religious charitable, scientific, athletic or cultural purposes or for the rehabilitation of veterans, provided that its assets or income shall not accrue to the benefit of any member are taxable.
True
False
it pertains to settlement of an estate in a court proceeding
Judicial settlement
Extra judicial settlement
when an individual taxpayer dies, future income on his property will be taxed to
those who inherit the property after they receive the money.
the estate itself after the heirs have received the property
the individual himself
if a regular accounting period has 12 months in length, what is the length of time for short accounting period
less than 6 months
less than 4 months
less than 12 months
which of the following can't be considered as royalty?
Patent
secret formula
trademark
Dressmaking
for taxation purposes, the taxable income of the estate shall be determined in the same manner and basis as in the case of a corporate taxpayers.
true
false
which of the following is not exempted from taxation?
retirement benefits
Life insurance
gift, bequest and devises
income from interest
Rolly, a purely self-employed individual, owns a fleet of taxi cabs. His total taxable income is P490,000. How much is his tax due?
P52,500
40,500
22,500
48000
Where do businesses are required to secure a mayor's permit or municipal license?
from the city or municipality where there head office hold office
from the city or municipality where the business is located
from any city or municipality the owner would want to secure a mayor's permit
from any city or municipality where the owner resides
It is where you register your single proprietorship business.
Department of Trade and Industry
Mayors Office
Securities and Exchange Commission
Bureau of Internal Revenue
These are individual taxpayers, earning compensation income from employment and income from business, practice of profession and other sources from employment
Compensation income earner
Self-employed individuals
mixed income earners
resident earners
The electronic COR generated by the Philippine Business Hub (PBH) and Online Registration and Update System (ORUS) is valid but still needs signature from the BIR
True
False
It is a partnership formed for the purpose of exercising the partner's profession.
General Partnership
Limited Partnership
General co-partnership
General professional partnership
When inherited property remained undivided for more than ____ and no attempt was ever made, the property shall be taxed as ____
10 years; as individual income taxation
10 years; partnership taxation
10 years; corporate taxation
How much is the corporate income tax rate for the net income from all sources of domestic corporations with total assets not exceeding P100 million?
25%
20%
2%
30%
Former corporate tax rate is 30% for domestic companies and resident foreign companies. How much is the present corporate tax rate effective, July 01, 2020?
32%
25%
20%
15%
Nestor presented the following data for the current taxable year:
Monthly basic salary
P65,000
13th month,christmas bonus
145,000
Mandatory contributions
23,0000
How much is the taxable compensation income?
835,000
858,000
780,000
812,000
Pierre de Savigny, a Frenchman, arrived in the Philippines on January 1, 2020 and continued to live and engage in the Philippines. He went on a tour of Southeast Asia from August 1 to November 5, 2020. He returned to the Philippines on November 6, 2020 and stayed until April 15, 2021 when he returned to France. He earned during his stay in the Philippines a gross income of P3 million from his investments in the country. For the year 2020, Pierre's taxable status is that of
A non-resident alien not engaged in trade or business in the Philippines
A resident alien not engaged in trade or busi- ness in the Philippines
A resident alien engaged in trade or busi- ness in the Philippines
The following are considered as exempt corporations except:
Non-profit labor, agricultural or horticultural organization
Non- stock and non-profit mutual savings and cooperative banks
government educational institutions
private corporations and hospitals
Which of the following is NOT subject to special corporate tax rate?
Proprietary educational institution
offshore banking units
international carriers
private hospitals
If a self-employed individual elect to pay his tax under the regular rate of 0% to 35%, how much percentage tax will he continually pay in addition to the income tax?
3%
5%
10%
15%
It is an artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence
Single proprietorship
Partnership
Corporation
Cooperative
Yvone operates a convenience store in Davao City and at the same time provides consultancy services to her clients. She provided the following information during the current taxable year.
Gross sales- convenience store
P1,200,000
Cost of Sales
720,000
Allowable operating expenses
200,000
Income from consultancy services
800,000
How much is the taxable income if Yvone opted for the graduated tax rates?
1,750,000
1,200,000
1,080,000
A characteristic on income taxation of individual taxpayers that imposes different tax rates depending on the level of income of the individual taxpayer
Graduated tax rates
Progressive tax rates
Special tax rates
Individual tax rates
Felipe is a partner of FPJ Company, a general professional partnership and owns 30% interest. The gross receipts of FPJ Company amounted to P15,000,000 for taxable year 2018. The recorded cost of service and operating expenses of FPJ Company were P1,500,000 and P3,000,000 respectively. What is the net income for distribution to partners
4,500,000
13,500,000
10,500,000
Partnership and Corporation are registered with the
DTI
BIR
SEC
CDO
Assuming Noy was able to secure a partition and three separate land titles were issued by the government before his death, naming his heirs as the rightful owners in his last will and testament, is a co-ownership created?
Yes
No
Co-Owners are taxed individually on their distributive share in the income of the co-ownership.
True
False
These are professionals who report income earned from exercise of profession.
Compensation income earner
self-employed individuals
mixed income earners.
ABC Corporation started business on April 5, 2023 and opted to report income tax on fiscal year ending every October 31. ABC Corp.'s first income tax return shall cover?
April 5, 2023 to October 31, 2023
April 6, 2023 to October 31, 2023
April 5, 2023 to December 31, 2023
Which of the following best describes graduated income tax?
seeks to strike a balance between raising revenue for government operations and promoting fairness to individual taxpayers.
advantage for those availing 8% preferential rates
to definitely identified the exclusive income of either spouse is equally divided between them
to differential individual taxpayers from pro- fessional taxpayers
What is the applicable tax for the gratuitous transfer of the property from the owner to his heirs?
Real Property Tax
Estate Tax
Partnership tax
Co-ownership tax
Which of the following entities are considered as corporations?
general professional partnerships
Joint ventures or consortium formed for the purpose of undertaking construction pro- jects for Philippine government
stocks listed in the stock exchange
The situs of service income is
Where the payment for services is made
where the service contract is perfected
where the services are performed
where the party availing of the services is located
Which of the following income is/are earned through employee and employer relationship?
I. Professional Fee
II. Wages
III. Pension Pay
IV. Capital Gain
I,II, III only
II and III only
I and II only
II only
Income received by the estate during the period of administration or settlement of estate, for tax purposes is known as
Income of the estate
Income of the heirs
Income of the trustee
Income of the testator
It usually exists when there are two or more beneficiaries that inherit a property or a donation is made to two or more donees
Co-Ownership
Estate
Trust
Which of the following is NOT one of the characteristics of corporate income tax?
Progressive Tax
Direct Tax
General Tax
National Tax
All non-profit educational institutions are tax exempt.
True
False
The rate of tax increases as the tax base increases but such increase is not directly proportional
graduated tax system
progressive tax rates
corporate tax rate
Individual tax rate
A partner is considered limited when the creditors have the right to go after the personal property of the partner.
True
False
If AB Corporation is a non-stock educational institution, which uses all its revenue or income for educational and charitable purposed, its income tax is
0
730,000
120,000
85,000
_____is one in whom confidence is reposed as regards property for the benefit of another person.
Estate
Trustee
Trustor
Beneficiary
For purposes of taxation, which of the following statements regarding partnership is correct?
I. Classified into two major categories, partnership in trade and general professional partnership.
II. Partnership in trade is treated as corporate taxpayer.
III. General professional partnership is exempt from income tax.
a. I, II and III
b. I and II only
c. I and III only
d. I only
Which of the following is correct?
a. If the partnership uses the itemized de- ductions for costs and expenses in comput- ing its net income, the partner must use the itemized deductions for cost in computing his personal net income.
b. If the partnership uses the itemized de- ductions for costs and expenses in comput- ing its net income, the partner must use the Optional Standard Deduction in computing his personal net income.
c. If the partnership uses the Optional Standard Deduction in computing its net in- come, the partner must use the itemized de- ductions for costs and expense in comput- ing his personal net income
d. If the partnership uses the Optional Standard Deduction in computing its net in- come, the partner must use the optional de- duction for costs and expense in computing his personal net income
a and b
b and c
All of the above
Felipe is a partner of FPJ Company, a general professional partnership and owns 30% interest. The gross receipts of FPJ Company amounted to P15,000,000 for taxable year 2018. The recorded cost of service and operating expenses of FPJ Company were P1,500,000 and P3,000,000 respectively. What is the tax liability of Felipe?
858,000
747,500
402,500
30% from the Gross profit
How much is the CIT rate of interest income from foreign currency deposits unit of depository banks to residents or other FCDU of depository banks?
2.5%
15%
10%
Exempt
Every business enterprise has to register with the BIR for taxation purposes.
True
False
All educational institutions are tax- exempt.
True
False
Felipe is a partner of FPJ Company, a general professional partnership and owns 30% interest. The gross receipts of FPJ Company amounted to P15,000,000 for taxable year 2018. The recorded cost of service and operating expenses of FPJ Company were P1,500,000 and P3,000,000 respectively. How much is is share in distributive profit?
10,500,00
858,000
3,150,000
15,000,000
When we talk about Net Taxable Compensation Income, it means the same as Tax Due or Tax Liability
True
False
TGT & Co. is a general partnership in trade and in its fifth year of operations. During the current taxable year, it had a gross profit from sales and business expenses of P2,000,000 and P1,000,000, respectively. T, G, and T share equally in the profits and losses of the partnership. The income tax due of the partnership is:
300,000
250,000
200,000
100,000
A general professional partnership is exempt from income tax, but is required to file an income tax return
For statistical purposes.
Because the net income of the partnership will be traced into the income tax re turn of the partners
Because all income earners are required to file income tax returns.
All of the above
Old TIN cards need to be replaced since old TIN Cards are already invalid TIN ID, which do expire
True
False
Under the TRAIN Law, individual taxpayers with annual taxable income amounting to PhP250,000.00 or below are still exempt from paying income tax, while the rest of taxpayers, except those with taxable income of more than PhP8,000,000.00, will have lower tax rates ranging from 15% to 30%, previously 20% to 32%.
True
False
In a general professional partnership (GPP),
The GPP shall report total partnership in- come and each individual partnership's share of that income.
The GPP shall be taxed on its income in the same manner as private partnerships.
The partners are not liable for taxes on in- come withdrawn from the partnership.
None of the above.
How much is the maximum amount allowed for individual income tax earners from the Christmas Bonus and 13th month pay?
90,000
100,000
8% from the gross amount
15% from the net amount
Who among of the following are individuals whose source of income is purely derived from an employer- employee relationship?
Compensation Income Earner
Self Employed individuals
Mixed Income Earners
Resident foreign corporations are taxed in the same manner as domestic corporations but only on Philippine- source income.
True
False
For taxation purposes, the taxable income of a trust shall be determined in the same manner and basis as in the case of individual taxpayers.
True
False
The 8% special tax rate is applicable to self-employed individuals and corporations.
True
False
The request for TIN card issuance and generation of the TIN card accomplished in the Revenue District Office (RDO) where the taxpayer is registered.
True
False
Ana, Lorna and Fe bought a parcel of land for the purpose of improving the same before leasing it out to interested tenants. Is a co-ownership created?
Yes
No
Nestor presented the following data for the current taxable year:
Monthly basic salary
P65,000
13th month, christmas bonus
145,000 Mandatory contributions
23,0000 How much is the tax due?
133,600
105,500
243600
64,960
