CHAPTER 17 T/F 3

Question 1

When there is no reciprocity, the transfer of intangible personal property located in the Philippines of a non-resident alien donor is not subject to tax.

Answer 1

False

Question 2

the gross gift of a resident citizen, a non-resident citizen or a resident alien donor shall include all his property wherever situated.

Answer 2

True

Question 3

If the donor was a non-resident alien, only his property located in the Philippines shall form part of his gross gift.

Answer 3

True

Question 4

the inclusion of intangible personal property located in the Philippines in the gross gift of a non-resident alien donor is subject to reciprocity rule.

Answer 4

True

Question 5

If the gift is made in property, the fair market value thereof at the time of the gift shall be considered the amount of the gift

Answer 5

True

Question 6

VAT is an indirect tax that can be passed on to consumers.

Answer 6

True

Question 7

All businesses, regardless of gross sales, are subject to VAT.

Answer 7

False

Question 8

The TRAIN Law removed the phrase “foreign currency denominated sale” as a zero-rated sale.

Answer 8

True

Question 9

Local government units are automatically exempt from VAT registration requirements.

Answer 9

False

Question 10

The VAT rate for taxable sales in the Philippines is 10%.

Answer 10

False

Question 11

Services rendered in the Philippines by a non-resident foreign person are considered “in the course of trade or business.”

Answer 11

True

Question 12

All services purchased by export enterprises are automatically subject to VAT zero-rating.

Answer 12

FALSE

Question 13

VAT is imposed at each stage of distribution rather than just on final consumption.

Answer 13

TRUE

Question 14

The VAT zero-rating of local purchases is subject to post-audit verification by the BIR.

Answer 14

TRUE

Question 15

Businesses with gross sales under P100,000 are still required to register for VAT.

Answer 15

FALSE