2nd Term, SY 2019-2020

Quiz on Income Taxation

Name:__________________________________Section:_________________________Date:_________________
I. Identification Identify the following statements Interest income on P10,000
being described. Place your answers on the personal receivable
space before the number. Interest on foreign 2,500 (dollars)
currency deposit
Interest income on 25,000
1. Income earned with very minimal involvement from
bank deposit
the taxpayer and generally irregular in timing and Royalty income (from 20,000
amount. books)
2. It includes earnings from copyrights, trademarks, Prize won in contest 50,000
patents, and natural resources under lease. Winnings from PCSO 75,000
3. It means any distributions made by a corporation to Sale of shares of 50,000
its shareholders out of its earnings or profits and stocks of domestic
payable to its shareholders, whether in money or in corporation (cost
P10,000)
property.
The passive income subject to tax of Pedro is:
4. These are given to a person, a group of people like a
sports team, or organization to recognize and reward
actions or achievements.
5. It means any good, service or other benefit furnished
or granted by an employer in cash or in kind, in
addition to basic salaries, to an individual.
4. From the information in item no. 3, the final tax of
6. They are those who are not holding managerial and
Pedro is:
supervisory positions.
7. The tax rate on fringe benefits effective January 1,
2018.
8. The percentage that will serve as the divisor to
determine the gross up monetary value of fringe
benefits.
9. This is the income earned from a deposit in a bank 5. During 2019, Alpha Corporation gave the following
or a financial institution. fringe benefits to its employees:
10. It refers to the profit that result from a sale of a
Salaries to rank and P1,000,000
capital asset, such as stock, bond or real estate,
file employees
where the selling price exceeds the cost. Salaries to 1,800,000
managerial
II. Problem Solving Solve the following problems employees
regarding Final tax and Fringe Benefit Tax. Answers De minimis benefits 54,400
must be supported with computations. to rank and file
employees
1. How much is the fringe benefit tax of a company De minimis benefits 27,200
which granted and paid P136,000 fringe benefits to to managers
its superior officers during 2018 taxable year? Fringe benefits to 102,000
rank and file
employees
Fringe benefits to 170,000
managerial
2. Ana has the following passive data in his passive employees
income earned during 2018: How much is the fringe benefit tax?

Interest income from P45,000

peso bank deposit
Interest from FCDU 50,000
deposits
Royalties from books 20,000
Royalties from computer 20,000
programs
Winnings from Smart 10,000
Communications
Dividend income from 27,000
San Miguel Corp.
How much is Ana’s final withholding tax?

3. Pedro, a resident of Isabela Province had the Income Tax Rates on Passive Income
following data for the taxable year 2019. (Exchange
rate 1 dollar=P40) Interest Income
 2nd Term, SY 2019-2020
Quiz on Income Taxation

Name:__________________________________Section:_________________________Date:_________________
A. Interest from any 20%
currency bank deposit and
yield or any other monetary
benefit from deposit
substitutes and from trust
funds and similar
arrangements
B. Interest income under 15%
the expanded foreign
currency deposit system
(FCDU)
C. Interest income on long- Less than 3 years-20%
term deposit 3 years but less than 4
years-12%
4 years but less than 5
years-5%
Royalties
Royalties on books and 10%
other literary works and
musical compositions
Other royalties 20%
Prizes
P10,000 and below Graduated Rates
More than P10,000 20%
Winnings
PCSO and Lotto Winnings More than P10,000-
20%
P10,000 and below-
Exempt
Other winnings 20%
Dividends and CGs
Cash and Property 10%
Dividends
Capital Gains from Sale of 15%
Shares of Stock not Traded
in the Stock Exchange
Capital Gains from Sale of 6%
Real Property located in the
Philippines

Fringe Benefits SUBJECT to FBT

1. Housing
2. Expense account
3. Vehicle
4. Household personnel (e.g. maid, drivers)
5. Interest on loan
6. Membership fees/dues in club or org.(s)
7. Expenses for foreign travel
8. Holiday and vacation expenses
9.Educational assistance (employee and dependents)
10. Life or health insurance in excess of what the law allows

Fringe Benefits NOT SUBJECT to FBT

1. Fringe benefits exempted by law
2. Contributions of the employer for the benefit of the
employee to retirement, insurance, and hospitalization
3. Benefits to rank-and-file employees
4. De minimis benefits
5. Benefits granted to employee which are required by the
nature of their profession or necessary to trade or business
6. Benefits granted for the convenience or advantage of the
employer

In case of housing privilege and motor vehicle:

a. No transfer of ownership-50% of monetary value
b. With transfer of ownership-same as the value of the
benefit or 100%