WorksheetsTAXATION FINALS LCC
Total questions: 37
Worksheet time: 9hrs 15mins
1. Which is correct with regard to final income taxation?
a. It covers all items of passive income from whatever sources
b. It applies to all items of gross income of any non-resident earned from sources within the Philippines
c. Taxpayers need not file an income tax return
d. It applies to passive income earned abroad
2. Which statement is correct regarding final income tax?
a. Items if income subjected to final tax can still be subjected to regular tax
b. Items of income exempt under final tax are subject to regular tax
c. Final income tax applies to all passive income from Philippines sources
d. Final tax applies inly on certain passive income earned within the Philippines
3. Interest income from which of the following sources is subject to final income tax?
a. Lending
b. Mortgage loans
c. Money market placements
d. Bond investments
4. The final tax does not apply to interest on (select the best answer)
a. Long-term deposit
b. Promissory notes
c. Deposit substitute
d. Trust funds
5. The tax exemption on final tax on interest from long-term deposit is not applicable to
a. Corporations
b. Citizens
c. Residents
d. All of these
6. Which interest income is not subject to any income tax ?
a. Interest income from discount notes
b. Interest income from bonds issued by a bank
c. Imputed interest
d. Interest income from deposit substitute
7. The final tax rates on pre-termination of long-term deposits is not relevant to
a. Any corporations
b. Resident citizens
c. Resident aliens
d. Non-resident citizens
8. Which of the following is subject to 7 1/2% final tax on interest from foreign currency deposits made with Philippine banks?
a. Resident aliens
b. Non-resident corporation
c. Non-resident alien engaged in trade or business
d. Non-resident alien not engaged in trade or business
9. The following are subject to final tax on all income from sources within the Philippines. Which is the exception?
a. Non-resident foreign corporation
b. Non-resident alien engaged in trade or business
c. Non-resident alien not engaged in trade or business
d. None of these
10. The interest income from long-term peso deposits made with foreign banks is
a. Subject to 20% final tax
b. Exempt from any tax
c. Subject to regular tax
d. None of these
11. What is the final tax on interest income on a 6-year deposit pre-terminated less than 2 years before maturity?
a. 20%
b. 12%
c. 5%
d. 0%
12. Which of the following recipients is exempt from final tax on dividends?
a. Resident citizen
b. Non-resident alien
c. Resident corporation
d. Resident alien
13. A dividend declaration in 2015 is subject to a final tax of
a. 6%
b. 8%
c. 10%
d. 20%
14. Dividends declared by a resident corporation is
a. Exempt from any tax
b. Subject to 10% final tax
subject to regular income tax
22. The following winnings are exempt from tax , except one. Which is the exception?
a. Lotto winnings
b. PCSO winnings
c. Jueteng winnings
d. All of these
23. Which of the following is exempt from final tax?
a. Interest income earned by a bank from deposits in another bank
b. Interest income earned by a bank from lending activities
c. Royalties from books
d. All of these
24. Dividend income from domestic corporations is subject to final tax effective
a. 1997
b. 1998
c. 1999
d. 2000
25. Prizes arising from sources within the Philippines may be
a. Subject to final tax
b. Subject to regular tax
c. Exempt from tax
d. Exempt or subject to final tax or regular tax
26. Any royalties earned abroad by a non-resident corporation is
a. Always subject to final tax
b. Subject to either final tax or regular tax
c. Always subject to regular tax
d. Not subject to Philippine income tax
27. The winnings of a resident alien from abroad is
a. Not subject to Philippine income tax
b. Subject to regular tax
c. Subject to final tax
d. Subject to either final tax or regular tax
28. Royalty income of a domestic corporation from abroad is
a. Subject to regular tax
b. Subject to final tax
c. Subject to either final tax or regular tax
d. Not subject to Philippine income tax
29. The final tax rates on passive income are generally similar to the following Select the exception
a. Domestic corporation
b. Resident alien
c. Non-resident citizen
d. Non-resident corporation
30. The tax informer's reward may be granted to
a. Officials of the BIR
b. Public officials or employees
c. Close relatives of public government employees
d. Relatives of government employees beyond the 6th degree of consanguinity
31. What is not subject to final tax?
a. Fringe benefits of rank and file employees
b. Compensation to non-resident aliens not-engaged in trade or business
c. Fringe benefits of supervisory and managerial employees
d. Income of non-resident foreign corporations
32. Which of the following is exempt from final tax?
a. Winnings in competitions sponsored by a local trading company
b. Prizes in a bodybuilding competition
c. Dividends from a foreign corporation
d. Winnings from a casino
33. Winnings from the PCSO are
a. Exempt from any tax
b. Subject to regular tax
c. Subject to 20% final tax
d. Subject to both final and regular tax
34. Which of the following is part of gross income in the ITR?
a. PCSO and Philippine Lotto Winnings
b. Bank interest on long term deposit
c. Proceeds of life insurance upon death of the insured
d. Raffle prize not exceeding P10,000
35. The following items are exclusion from gross income, except
a. Labor union dues
b. SSS/GSIS premium contribution
c. IOUs
d. Pag-ibig premium contribution
42. Progressive income tax does not apply to a
a. Non-resident alien
b. resident alien.
c. non-resident citizen
d. resident citizen
43. The highest marginal tax rate for individual income taxpayers is
a. 25%
b. 30%
c. 35%
d. 32%
44. Which is not an item of exclusion from gross income?
a. SSS benefits
b. Income of the government and its political subdivisions
c. Income of government-owned and controlled corporations
d. Income of foreign governments
45. Which is subject to income tax?
a. Gain on sale of 6-year bonds
b. Gain on sale of shares in mutual funds
c. Interest income on long-term bonds with a maturity period exceeding five years.
d. Interest income on long-term deposits by individual taxpayers.
46. Which of the following is not an exclusion from gross income?
a. Income of government properties
b. Income taxes collected by the Bureau of Internal Revenue
c. Dividend income payable to a foreign government
d. Social Security benefits
47. Which is not a requisite of exemption of a retirement benefit plan?
a. 10 years of employment
b. The employer maintains a reasonable pension benefit plan
c. The retiree must be a senior citizen
d. First time availment of retirement exemption
48. Which of the following is subject to tax?
a. Proceeds of crop insurance
b. Proceeds of livestock insurance
c. Indemnity under patent infringement suit
d. All of these
49. The assignment of an insurance policy at an amount in excess of the paid on the policy is subject to
a. Donor's tax
b. Income tax
c. Estate tax
d. any of these
50. Which is correct with respect to deductions from gross income?
a. They pertain to expenses of generating items of business or professional gross income.
b. They are excluded from the determination of taxable income.
c. They include all expenses incurred in the generation of any income.
d. They include P 250,000 annual income exemption.
