18-20

Question 1

A person or entity engaged in the business of leasing real property, either residential or commercial, for a fee or rental income.

Answer 1

Real Estate Lessor –

Question 2

– A performance of an act or service for a fee, compensation, or consideration, including lease of properties.

Answer 2

Sales or Exchange of Services

Question 3

A foreign individual or corporation not residing in the Philippines but leasing out property located in the country.

Answer 3

Non-Resident Lessor/Owner –

Question 4

A written agreement between a lessor and lessee outlining the terms of rental of a property or equipment.

Answer 4

Lease Contract –

Question 5

A payment made ahead of the due date for goods or services to be delivered or rendered in the future.

Answer 5

Advance Payment –

Question 6

A rental payment made in advance before the rental period starts.

Answer 6

Prepaid Rental –

Question 7

– A stock corporation that earns income from real estate assets and is governed by the REIT Act of 2009.

Answer 7

Real Estate Investment Trust (REIT)

Question 8

– A commercial service involving the storage of goods for a fee.

Answer 8

Warehousing Service

Question 9

– A business engaged in processing agricultural produce, such as rice or sugar, into finished products.

Answer 9

Miller

Question 10

– A person or entity engaged in buying and selling securities as a business.

Answer 10

Dealer in Securities

Question 11

An entity primarily engaged in the business of lending money for interest.

Answer 11

Lending Investor –

Question 12

– A special court in the Philippines that has exclusive jurisdiction to review tax cases and decisions of tax authorities.

Answer 12

Court of Tax Appeals

Question 13

– Entities engaged in transporting goods or passengers for a fee and available to the general public.

Answer 13

Common Carriers

Question 14

Businesses engaged in the production of electricity through power generation facilities.

Answer 14

Generation Companies –

Question 15

– Firms responsible for transporting electricity from generation companies to distribution utilities.

Answer 15

Transmission Companies

Question 16

– The private corporation operating, maintaining, and developing the country’s power transmission system.

Answer 16

National Grid Corporation of the Philippines (NGCP)

Question 17

– The government agency regulating electricity rates and ensuring consumer protection in the energy sector.

Answer 17

ERC (Energy Regulatory Commission)

Question 18

– Companies that deliver electricity from transmission systems to end-users.

Answer 18

Distribution Companies

Question 19

– Insurance companies offering coverage for properties, liabilities, and other non-life risks.

Answer 19

Non-Life Insurance Companies

Question 20

Entities offering plans for future services like memorial, educational, or pension services.

Answer 20

Pre-Need Companies –

Question 21

– Organizations providing prepaid health care services through a network of doctors and hospitals.

Answer 21

Health Maintenance Organizations (HMO)

Question 22

– The total amount received for services rendered or sales made, excluding VAT.

Answer 22

Gross Receipts

Question 23

Income is considered earned and taxable when it is made available to the taxpayer, regardless of actual receipt.

Answer 23

Constructive Receipt –

Question 24

– Sale of services subject to 0% VAT, usually involving export services or PEZA-registered activities.

Answer 24

Zero-Rated Sales of Services

Question 25

– Government agency promoting investments in economic zones with tax incentives.

Answer 25

Philippine Economic Zone Authority (PEZA)

Question 26

– Bringing goods into the Philippines from abroad, subject to customs duties and VAT.

Answer 26

Importation of Goods

Question 27

The VAT paid on purchases of goods or services by a VAT-registered person.

Answer 27

Input Tax –

Question 28

The VAT collected on sales or services rendered by a VAT-registered person.

Answer 28

Output Tax –

Question 29

A transaction treated as a sale for VAT purposes even if no actual sale occurred (e.g., retirement of business).

Answer 29

Deemed Sale –

Question 30

– An account showing ongoing costs of construction not yet completed or capitalized.

Answer 30

Construction in Progress

Question 31

– Input tax allowed when a person becomes VAT-registered and holds inventory or capital goods.

Answer 31

Transitional Input Tax

Question 32

– A fixed rate input tax granted under certain conditions (e.g., to millers or public markets).

Answer 32

Presumptive Input Tax

Question 33

– The portion of input tax that can be applied against output tax liability.

Answer 33

Creditable Input Tax

Question 34

The excess of output tax over input tax; the amount due to the BIR.

Answer 34

Value-Added Tax (VAT) Payable –