Source(s) of taxable income
Ana, a resident citizen, provided the following data for year current taxable yea: Gross income from business (gross of P12000 CWT) - 700000 Business Expenses - 300000 Royalty from books - 40000 Gain on direct sale to buyer of shares of stock of a domestic corporation held as capital asset - 70000 Loss on sale of land in the Philippines held as capital asset with cost of 1500000 when the zonal value of 1200000 - 500000 How much is the total income tax expense of ana? I. 116500 II. 207500 III. 159500 IV. 156000
I
Determine the total final tax assuming he is I. RC- 553000, NRC - 490000, RA - 150000, NRA-ET - 687500 II. RC- 121500, NRC - 90000, RA - 121500, NRA-ET - 150000 III. RC - 131000, NRC - 90000, RA - 90000, NRA-ET 90000 IV. RC - 55300, NRC - 490000, RA - 550000, NRA-ET - 687500
I
Is is important to know the source for income tax purposes (i.e. from within and without the Philippines) because: I. 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. II. The Philippines imposes income taxes only on income from sources within. III. Some individual taxpayers are citizens while others are aliens. IV. Export sales are not subject to income tax.
I
Juan, married, supporting his three (3) minor children had the following data for the current taxable year (exchange rate $1 = P50) Business Income (Philippines - P1000000; Abroad - $ 20000), Professional income (Philippines - P400000; Abroad - $10000), Salaries (Philippines - P200000) Business and professional expenses (Philippines - P250000; Abroad - $8000), Income tax paid (Abroad - $4000) If Juan is a resident citizen and taxable year is 2018, his income tax payable is: I. 434000 II. 57000 III. 589000 IV. 509000
I
Juan, married, supporting his three (3) minor children had the following data for the current taxable year (exchange rate $1 = P50) Business Income (Philippines - P1000000; Abroad - $ 20000), Professional income (Philippines - P400000; Abroad - $10000), Salaries (Philippines - P200000) Business and professional expenses (Philippines - P250000; Abroad - $8000), Income tax paid (Abroad - $4000) If he is a non-resident citizen and the taxable year is 2017, his income tax due after tax credit, if any is: I. 295000 II. 358929 III. 384380 IV. 357000
I
Juan, married, supporting his three (3) minor children had the following data for the current taxable year (exchange rate $1 = P50) Business Income (Philippines - P1000000; Abroad - $ 20000), Professional income (Philippines - P400000; Abroad - $10000), Salaries (Philippines - P200000) Business and professional expenses (Philippines - P250000; Abroad - $8000), Income tax paid (Abroad - $4000) If he is a non-resident citizen and the taxable year is 2018, his income tax payable is I. 397000 II. 378500 III. 405500 IV. 338500
I
Juan, married, supporting his three (3) minor children had the following data for the current taxable year (exchange rate $1 = P50) Business Income (Philippines - P1000000; Abroad - $ 20000), Professional income (Philippines - P400000; Abroad - $10000), Salaries (Philippines - P200000) Business and professional expenses (Philippines - P250000; Abroad - $8000), Income tax paid (Abroad - $4000) If he is a non-resident citizen and the taxable year is 2018, his income tax payable is: I. 295000 II. 358020 III. 384380 IV. 357000
I
Juan, married, supporting his three (3) minor children had the following data for the current taxable year (exchange rate $1 = P50) Business Income (Philippines - P1000000; Abroad - $ 20000), Professional income (Philippines - P400000; Abroad - $10000), Salaries (Philippines - P200000) Business and professional expenses (Philippines - P250000; Abroad - $8000), Income tax paid (Abroad - $4000) if he is a non-resident alien not engaged in trade or business, disregarding professional and business data, the total income tax that should be withheld from his income is I. 50000 II. 18500 III 31500 IV. 338500
I
LJ, married, left the Philippines in the middle of the year on July 1, 2018 to go abroad and work there for five (5) years. The following data were provided as of December 31, 2018 For Jan 1 to June 30, the gross business income for Phls and abroad were 300000 and 200000, respectively, and the business expenses were 100000 and 50000 for Phls and abroad, respectively. For July 1 to Dec 31 the gross business income for Phls and abroad were 600000 and 400000, respectively, and the business expenses were 150000 and 50000 for Phls and abroad, respectively. His taxable income is? I. 800000 II. 950000 III. 1100000 IV. 600000
I
Pedro Dela Cruz, nonresident citizen, arrived in the Philippines on July 1, 2018 to reside here permanently after working as a nurse in the United States for many years. Which of the following statements is correct with respect to his classification for income tax purpose? I. He shall be classified as nonresident citizen for the year 2018 with respect to his income derived from sources abroad from January 1, 2018 until the date of his arrival in the Philippines. II. He shall be classified as nonresident citizen for the whole year of 2018 III. He shall be classified as resident citizen for the whole year 2018. IV. He shall be classified as neither resident nor nonresident citizen for the year 2018
I
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 Philippines III Capital gains tax IV. Stock transaction tax of 6/10 of 1% of gross selling price
I, II and III
Ana, a resident citizen, provided the following data for year current taxable yea: Gross income from business (gross of P12000 CWT) - 700000 Business Expenses - 300000 Royalty from books - 40000 Gain on direct sale to buyer of shares of stock of a domestic corporation held as capital asset - 70000 Loss on sale of land in the Philippines held as capital asset with cost of 1500000 when the zonal value of 1200000 - 500000 How much is the income tax payable of ana? I. 12000 II. 18000 III. 30000 IV. nil
II
Which of the following is true? I. A citizen of the Philippines residing therein is taxable on all income derived from sources within and without the Philippines. II. A non-resident citizen is taxable on income derived from sources within the Philippines only. III. An alien individual, whether a resident or not of the Philippines, is taxable on income derived from sources within the Philippines only. IV. A seaman who is a citizen of the Philippines and who receives compensation for services rendered abroad as a member of the complement of a vessel engage in international trade shall be treated as an overseas contract worker.
All are correct
Carlo, married, with two dependent children, received the following income: Business income, Philippines -1000000 Business income, Hong Kong - 200000 Interest, peso deposit, MBTC - 100000 Interest, US$ deposit, BDO ($10000 xP42) - 420000 Interest, deposit in Hongkong (HK$ 10000xP5) - 50000 Prize (TV) won in a local lottery - 50000 PCSO/Lotto winnings - 2000000 Prize won in contest in US - 300000 Lotto Winning in US - 100000 Divident, Domestic company - 600000 Assuming the taxable year is 2017, determine the total final tax assuming he is: I. RC - 553000, NRC - 490000, NRAET - 550000, NRA-ET - 150500 II. RC - 121500, NRC - 90000, NRAET - 150000, NRA-ET - 687500 III. RC - 131000, NRC - 90000, NRAET - 90000, NRA-ET - 90000 IV. RC - 142000, NRC - 90000, NRAET - 150000, NRA-ET - 150000
II
Juan, married, supporting his three (3) minor children had the following data for the current taxable year (exchange rate $1 = P50) Business Income (Philippines - P1000000; Abroad - $ 20000), Professional income (Philippines - P400000; Abroad - $10000), Salaries (Philippines - P200000) Business and professional expenses (Philippines - P250000; Abroad - $8000), Income tax paid (Abroad - $4000) If he is a special alien employee, disregarding professional and business data, the total income tax that should be withheld from his income assuming the taxable year is 2017 should be: I. 18500 II. 30000 III. 11500 IV. none
II
LJ, married, arrived from abroad on July 1, 2018 to permanently resettle in the Philippines, after working abroad for 5 years, The following data were provided as of December 31, 2018 For Jan 1 to June 30, the gross business income for Phls and abroad were 300000 and 200000, respectively, and the business expenses were 100000 and 50000 for Phls and abroad, respectively. For July 1 to Dec 31 the gross business income for Phls and abroad were 600000 and 400000, respectively, and the business expenses were 150000 and 50000 for Phls and abroad, respectively. his taxable income as of December 31, 2018 is; I. 750000 II. 1000000 III. 1100000 IV. 600000
II
Mr and Mrs Dela Cruz, both CPAs and resident of the Philippines with 5 minor children had the following data for 2018 taxable year: Salaries, wife - P1200000 13th month pay and other bonuses, wife - 140000 Professional fees, (net of 5% CWT) - 1710000 Expenses - practice of profession (15% nondeductible) - 800000 Rental income (net of 5%withholding tax) - 190000 Rental expenses - 80000 Other income, husband (20% non taxable) - 80000 The taxable income of Mr Dela Cruz is: I. 48400 II. 684000 III. 1870000 IV. 2554000
II
Taxable only on income from sources within the Philippines, except I. Nonresident citizen II. Resident citizen III. Resident alien IV. Nonresident alien
II
Ana, a resident citizen, provided the following data for year current taxable yea: Gross income from business (gross of P12000 CWT) - 700000 Business Expenses - 300000 Royalty from books - 40000 Gain on direct sale to buyer of shares of stock of a domestic corporation held as capital asset - 70000 Loss on sale of land in the Philippines held as capital asset with cost of 1500000 when the zonal value of 1200000 - 500000 Assuming the taxable year is 2017, how much is the total income tax expense of Ana I. 116500 II. 207000 III. 159500 IV. 156000
III
Carlo, married, with two dependent children, received the following income: Business income, Philippines -1000000 Business income, Hong Kong - 200000 Interest, peso deposit, MBTC - 100000 Interest, US$ deposit, BDO ($10000 xP42) - 420000 Interest, deposit in Hongkong (HK$ 10000xP5) - 50000 Prize (TV) won in a local lottery - 50000 PCSO/Lotto winnings - 2000000 Prize won in contest in US - 300000 Lotto Winning in US - 100000 Divident, Domestic company - 600000 Assuming the taxable year is 2017, determine the taxable net income assuming he is: I. RC-80000, NRC - 180000, RA - 830000, NRA-ETB - 180000 II. RC- 180000, NRC - 80000, RA - 1000000, NRA-ETB - 1000000 III. RC - 1550000, NRC - 900000, RA - 900000, NRA-ETB 900000 IV. RC - 1650000, NRC - 1000000, RA - 1000000, NRA-ETB - 1000000
III
Chris is a Filipino immigrant living in the United States for more than 15 years. He is retired and he came back to the Philippines as a balikbayan. Every time he comes to the Philippines, he stays here about a month. He regularly received pensions from his former employer in the United States, amounting to 2000 US dollar a month. While in the Philippines with his pension pay from his former employer, he purchased three condominium units in Makati which he is renting out of P25000 a month each. Does the 2000 US Dollar pension become taxable because he is now in the Philippines? I. Yes, income received in the Philippines by the non-resident citizen is taxable II. Yes, income received in the Philippines or abroad by non-resident citizen is taxable. III. No, income earned abroad by non-resident citizen are not tacable in the Philippines. IV. No, the pension is exempt from taxation from being one of the exclusions from gross income
III
LJ, married is in the Philippines The following data were provided as of December 31, 2018 For Jan 1 to June 30, the gross business income for Phls and abroad were 300000 and 200000, respectively, and the business expenses were 100000 and 50000 for Phls and abroad, respectively. For July 1 to Dec 31 the gross business income for Phls and abroad were 600000 and 400000, respectively, and the business expenses were 150000 and 50000 for Phls and abroad, respectively. How much is his taxable incoome: I. 750000 II. 950000 III. 1150000 IV. 600000
III
Mr and Mrs Dela Cruz, both CPAs and resident of the Philippines with 5 minor children had the following data for 2018 taxable year: Salaries, wife - P1200000 13th month pay and other bonuses, wife - 140000 Professional fees, (net of 5% CWT) - 1710000 Expenses - practice of profession (15% nondeductible) - 800000 Rental income (net of 5%withholding tax) - 190000 Rental expenses - 80000 Other income, husband (20% non taxable) - 80000 The taxable income of Mrs. Dela Cruz is : I. 371000 II. 359000 III. 1870000 IV. 410000
III
Situs of taxation is world/ global taxation I. Nonresident alien engaged in trade II. Resident alien III. Resident citizen
III
Carlo, married, with two dependent children, received the following income: Business income, Philippines -1000000 Business income, Hong Kong - 200000 Interest, peso deposit, MBTC - 100000 Interest, US$ deposit, BDO ($10000 xP42) - 420000 Interest, deposit in Hongkong (HK$ 10000xP5) - 50000 Prize (TV) won in a local lottery - 50000 PCSO/Lotto winnings - 2000000 Prize won in contest in US - 300000 Lotto Winning in US - 100000 Divident, Domestic company - 600000 Determine the taxable income assuminng he is I. RC - 80000, NRC - 180000, RA - 830000, NRA-ETB - 180000 II. RC - 180000, NRC - 80000, RA - 1000000, NRA-ETB - 1000000 III. RC - 1558000, NRC - 908000, RA - 908000, NRA-ETB - 908000 IV. RC-1650000, NRC - 1000000, RA - 1000000, NRA-ETB - 1000000
IV
Floyd, an american citizen who is married to a beautiful Filipina owns a building in the United States and leases the same to business owned by Filipino residents. Floyd has his residence in the Philippines and all his children are studying in the top Philippine Universities. Which of the following statement is true regarding the rental income? I. Taxable in the Philippines because he had his residence in the Philippines II. Taxable in the Philippines because his wife is a resident citizen and they are all residents of the Philippines III. Taxable in the Philippines because he derives his income from Filipino resident lessees IV. Exempt in the Philippines because Floyd is resident alien. As such, he is taxable only on income derived from sources within the Philippines
IV
Juan, married, supporting his three (3) minor children had the following data for the current taxable year (exchange rate $1 = P50) Business Income (Philippines - P1000000; Abroad - $ 20000), Professional income (Philippines - P400000; Abroad - $10000), Salaries (Philippines - P200000) Business and professional expenses (Philippines - P250000; Abroad - $8000), Income tax paid (Abroad - $4000) If Juan is a resident citizen and taxable year is 2017, his income tax payable is I. 434000 II. 570500 III. 589000 IV. 509000
IV
Juan, married, supporting his three (3) minor children had the following data for the current taxable year (exchange rate $1 = P50) Business Income (Philippines - P1000000; Abroad - $ 20000), Professional income (Philippines - P400000; Abroad - $10000), Salaries (Philippines - P200000) Business and professional expenses (Philippines - P250000; Abroad - $8000), Income tax paid (Abroad - $4000) if he is a resident alien and the taxable year is 2017, his income tax payable is I. 360580 II. 358020 III. 384380 IV. 357000
IV
Who of the following individual taxpayers is taxable on income derived from within and without the Philippines I. Pedro, a native of Bacolod City, working as overseas contract worker in Iraq II. Lee Min Ho, Korean singer, held a 3-day concert in Manila III. Pao Gasul, Spanish citizen, a resident of Madrid, Spain, spent a one (one) week vacation in Boracay IV. George, naturalized Filipino citizen and married to a Filipina. He had been living in Pampanga since 1990
IV