InTax True or False

Question 1

A non-resident citizen’s income from outside the Philippines is taxable in the Philippines.

Answer 1

False

Question 2

Income of a non-resident alien not engaged in trade or business is taxed at a flat rate of 25%.

Answer 2

True

Question 3

A non-resident citizen who has stayed abroad for over 183 days is exempt from income tax in the Philippines on foreign income

Answer 3

True

Question 4

A company can opt for the 8% income tax rate on his business income since his gross receipts d not exceed the VAT threshold

Answer 4

True

Question 5

The company would be subjected to a maximum tax rate of 24% on her YouTube earnings if she does not inform Google LLC of her residency in the Philippines

Answer 5

True

Question 6

Mixed income earners can avail of the 8% income tax rate for both compensation & business income.

Answer 6

False

Question 7

non-operating income should be included in the computation of tax liabilities for businesses.

Answer 7

True

Question 8

The P250k deduction applied to both compensation income and income from business or mixed income earners.

Answer 8

False

Question 9

A taxpayer earning compensation income and owning a business with gross receipt exceeding P3 million is subjected to VAT

Answer 9

True

Question 10

Social media influences are exempt from business tax if their income is below P250k.

Answer 10

False

Question 11

A Minimum Wage Earner (MWE) is not exempt from income tax, and the statutory minimum wage, holiday pay, overtime pay, night shift differential pays, and hazard pay received by such MWE are subject to income tax under the law.

Answer 11

False

Question 12

The option to avail the 8% income tax rate is applicable to both compensation income and business income, and it is in addition to the income tax under the graduated rates and the percentage tax under Section 116 of the Tax Code.

Answer 12

False