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SOPHOMORE: THE CALM BEFORE THE STORM MIDTERMS

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

1. What is the current general FBT rate in the Philippines for a citizen or resident alien employee holding a managerial or supervisory position?


a)

A. 20%

b)

B. 25%

c)

C. 30%

d)

D. 35%

2.

2. The Fringe Benefit Tax (FBT) is imposed on which of the following?


a)

Monetary value of the fringe benefit.

b)

Grossed-up monetary value of the fringe benefit.

c)

Actual cost of the fringe benefit to the employer.

d)

Fair market value of the property, if granted in kind.

3.

3. Which group of employees are generally exempt from the Fringe Benefit Tax (FBT) imposed on the employer, as the benefit is subject instead to the normal compensation tax?


a)

Supervisory employees.

b)

Managerial employees.

c)

Rank-and-file employees

d)

Non-resident aliens not engaged in trade or business in the Philippines.

4.

4. For a resident citizen employee subject to the 35% FBT rate, the Grossed-up Monetary Value (GMV) of the fringe benefit is determined by dividing the monetary value by what percentage?


a)

68%

b)

75%

c)

65%

d)

85%

5.

5. Which of the following is considered a taxable fringe benefit subject to FBT? 


a)

Contributions of the employer for the benefit of the employee to a retirement plan.

b)

De minimis benefits within the prescribed limit

c)

Educational assistance granted to the employee's dependent.

d)

Benefits granted to the employee which are required by the nature of the employer's business.

6.

6. The following is the general presumption of gain in capital gains tax except


a)

Tax base is Selling price or fair market value which ever is higher

b)

In cases of net loss in transaction Capital Gain Tax must still be paid

c)

Tax base is Fair market value or selling price which ever is lower

d)

The actual gain is immaterial

7.

7. The sale of real property in the Philippines that is classified as a capital asset (e.g., a family residence or investment lot) is subject to a final CGT. What is the rate of this final tax?

a)

5%

b)

6%

c)

15%

d)

30%

8.

8. The 6% final CGT on the sale of real property classified as a capital asset is based on:

a)

The actual consideration in the Deed of Sale, less the cost of acquisition.

b)

The net capital gain was realized.

c)

The Assessor's Value, less the cost of improvements.

d)

The higher of the Gross Selling Price or the Current Fair Market Value (zonal value)

9.

9. The following is the rules of payment and filing of capital gain tax except

a)

Within 30 days from date of sale or exchange

b)

Can be done in installment basis

c)

In foreclosure sales it must be done within 35 days

d)

Must be done in BIR form 1706

10.

10. To qualify for the exemption from the 6% CGT on the sale of a principal residence, the proceeds of the sale must be fully utilized in acquiring or constructing a new principal residence within how many calendar months from the date of sale?

a)

6 months

b)

12 months

c)

18 months

d)

24 months

11.

11. In Fringe Benefit Tax, what is the percent of monetary value to be used if it is paid in CASH

a)

50%

b)

35%

c)

100%

d)

65%

12.

12. In Fringe benefit tax, what would be used to compute if the rental value of a property is missing?

a)

Zonal Value

b)

Depreciation Value

c)

Consideration Value

d)

50%

13.

13. The following is NOT the requisite of tax exemption regarding sale of principal residence except

a)

It can be availed every 10 months

b)

It involves principal residence

c)

The notification for avail must be within 180 days from sales

d)

Reacquisition of new principal residence within 10 years from the date of sale.

14.

14. MAJEST Inc. allows its Executive Secretary to reside in a condominium situated near Adamson University. It said that the company shoulders the monthly rental, amounting to P53,000 of such a unit. How much is the quarterly monetary value of this fringe benefit tax? 

a)

P52,500

b)

P79,500

c)

P35,000

d)

 P26,500

15.

15. MAJEST Inc. allows its Executive Secretary to reside in a condominium situated near Adamson University. It said that the company shoulders the monthly rental, amounting to P53,000 of such a unit. How much is the fringe benefit tax due? 

a)

P122,308

b)

P79,500

c)

P42,808

d)

26,500