20250422 Prefinal Examination Flashcards
(30 cards)
Which of the following is classified as special corporation subject to preferential corporate income tax rate?
a. Social Security System
b. Proprietary educational institution
c. Philippine Charity Sweepstakes Office
d. Government Service Insurance System
b. Proprietary educational institution
A corporation which may be classified as either a resident corporation or a non-resident corporation is:
a. Domestic corporation
b. Foreign corporation
c. Government owned and controlled corporation
d. Non-profit hospital
b. Foreign corporation
The Social Security System (SSS), a government owned and controlled corporation is:
a. Subject to preferential corporate income tax for special corporations
b. Subject to basic corporate income tax
c. Subject to both the preferential income tax and the basic corporate income tax
d. Exempt from corporate income tax
d. Exempt from corporate income tax
Public educational institutions, like the Polytechnic University of the Philippines, is deemed by law:
a. Subject to the preferential corporate income tax for special corporations
b. Subject to basic corporate income tax
c. Subject to both the preferential income tax and the basic corporate income tax
d. Exempt from the corporate income tax
a. Subject to the preferential corporate income tax for special corporations
Which is not correct? The following are exempt from the corporate income tax:
a. Philippine Charity Sweepstakes Office
b. Bureau of Internal Revenue
c. Govt. owned or controlled corp
d. Social Security System
c. Govt. owned or controlled corp
Which of the following may be subject to corporate income tax?
a. A non-stock and non-profit educational institution
b. A public educational institution
c. A private educational institution
d. Government Service Insurance System
c. A private educational institution
A domestic corporation may employ, as basis for filing its annual corporate income tax return:
a. Calendar year only
b. Fiscal year only
c. Either calendar or fiscal year
d. Neither calendar nor fiscal year
c. Either calendar or fiscal year
A final or annual return shall be filed on or before the 15th day of the ____ month following the close of the taxable year:
a. 2nd month
b. 3rd month
c. 4th month
d. 5th month
c. 4th month
A corporation on a fiscal year ending March 31, should file its annual return:
a. On or before July 15 of the same year
b. On or before April 15 of the following year
c. On or before June 15 of the following year
d. On or before July 15 of the following year
a. On or before July 15 of the same year
Which of the following statements is not correct?
a. The MCIT is not applicable to non-resident foreign corporations.
b. The corporate quarterly return shall be filed within 60 days following the close of each of the first three quarters of the taxable year.
c. Resident foreign corporations would be taxed on net income from within the Phils. only
d. Non-resident foreign corporations are taxed on gross income from within and without the Phils.
d. Non-resident foreign corporations are taxed on gross income from within and without the Phils.
The following income is subject to final tax, except:
a. Royalty income received by a domestic corporation from a domestic corporation
b. Cash dividends received by a non-resident foreign corporation from a domestic corporation
c. Cash dividends received by a domestic corporation from a domestic corporation
d. Interest income received by resident foreign corporation from a Philippine bank
b. Cash dividends received by a non-resident foreign corporation from a domestic corporation
All of the following statements are correct, except one. Which is the exception?
a. The source of interest income is the country where the debtor resides.
b. The source of dividend income is the country where the corporation is incorporated.
c. Rents are considered derived from the country where the property is located.
b. The source of dividend income is the country where the corporation is incorporated.
For income tax purposes, the term ‘corporation’ excludes one of the following:
a. Ordinary partnership
b. An incorporated business organization
c. General professional partnership
d. Business partnership
c. General professional partnership
Which of the following is subject to the corporate income tax?
a. A non-stock and non-profit educational institution
b. Public educational institution
c. Private cemeteries
d. Civic league or organization not organized for profit and operated exclusively for the promotion of social welfare
c. Private cemeteries
A corporation organized and created under the laws of a foreign country and is authorized to do business in the Philippines is:
a. Domestic corporation
b. Resident foreign corporation
c. Non-resident foreign corporation
d. General co-partnership
b. Resident foreign corporation
One of the general principles of income taxation:
a. A foreign corporation engaged in business in the Philippines is taxable on all income derived from sources within and without the Philippines.
b. A foreign corporation engaged in business in the Philippines is taxable on all income derived from sources within the Philippines only.
c. A domestic corporation is taxable on income derived from sources within the Philippines only.
d. A domestic corporation is taxable on income derived from sources without the Philippines only.
b. A foreign corporation engaged in business in the Philippines is taxable on all income derived from sources within the Philippines only.
One of the following does not fall under the definition of a ‘corporation’ for income tax purpose:
a. General partnerships
b. Joint stock company
c. Insurance company
d. Sole proprietorship
d. Sole proprietorship
Corporations exempt from income tax are enumerated under Section 30 of the National Internal Revenue Code.
Statement 1. They are not subject to income tax on income received which are incidental to or necessary/connected with the purposes for which they were organized and are operating.
Statement 2. They are subject to income tax on income of whatever kind and character from any of their properties, real or personal, or from any activity conducted for profit, regardless of the disposition of such income.
a. True, True
b. False, False
c. True, False
d. False, True.
a. True, True
Statement 1: In the CREATE law, the corporate tax rate of nonprofit proprietary educational institutions was reduced from 10% to 2%.
Statement 2: The VAT on the sale or importation of vaccine for COVID19 was reduced from 12% to exempt starting January 1, 2021 in the new Create law.
a. True, True
b. False, false
c. True, false
d. False, true.
d. False, true.
Which of the following is not a characteristic of a deduction?
a. It is a reduction of wealth that helped earn the income subject to tax.
b. An immunity or privilege, a freedom from a charge or burden to which others are subjected
c. It is not a relief
d. It is a subtraction to arrive at income subject to tax
c. It is not a relief
This is not a requisite for business expense to be:
a. It must be reasonable
b. It must be paid during the taxable year
c. the withholding tax otherwise required have been deducted and remitted to the BIR
d. It must be for ordinary and necessary
a. It must be reasonable
Which of the following is allowable expense of an employer?
a. tax withheld by a corporation from its employees salary
b. kickback payment to government official
c. distribution of profits to partners
d. none of the above
c. distribution of profits to partners
Which of the following is not a requisite for taxes to be deductible?
a. must have been paid or incurred within the taxable year
b. deductible only by the person/s upon whom the tax is imposed by law
c. must be in connection with the taxpayers trade or business
d. must be imposed by national government
c. must be in connection with the taxpayers trade or business
One of the following does not fall under the definition of a ‘corporation’ for income tax purpose:
a. General partnerships
b. Joint stock company
c. Insurance company
d. Sole proprietorship
d. Sole proprietorship
