Chapter 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 8

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

Answer 8

Miller

Question 9

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

Answer 9

Dealer in Securities

Question 10

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

Answer 10

Court of Tax Appeals

Question 11

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

Answer 11

Lending Investor

Question 12

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

Answer 12

Common Carriers

Question 13

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

Answer 13

generation Companies

Question 14

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

Answer 14

Transmission Companies

Question 15

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

Answer 15

National Grid Corporation of the Philippines (NGCP)

Question 16

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

Answer 16

ERC (Energy Regulatory Commission

Question 17

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

Answer 17

Distribution Companies

Question 18

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

Answer 18

Non-Life Insurance Companies

Question 19

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

Answer 19

Pre-Need Companies

Question 20

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

Answer 20

Health Maintenance Organizations (HMO)

Question 21

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

Answer 21

Gross Receipts

Question 22

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

Answer 22

Constructive Receipt

Question 23

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

Answer 23

Zero-Rated Sales of Services

Question 24

Government agency promoting investments in economic zones with tax incentives.

Answer 24

Philippine Economic Zone Authority (PEZA

Question 25

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

Answer 25

Importation of Goods

Question 26

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

Answer 26

Input Tax

Question 27

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

Answer 27

Output Tax

Question 28

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

Answer 28

Deemed Sale

Question 29

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

Answer 29

Construction in Progress

Question 30

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

Answer 30

Transitional Input Tax

Question 31

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

Answer 31

Presumptive Input Tax

Question 32

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

Answer 32

Creditable Input Tax

Question 33

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

Answer 33

34. Value-Added Tax (VAT) Payable