Person or Entity Classification

1. A fat Mexican tourist

2. An overseas Filipino worker
3. An expatriate employee
4. A Filipino who is privately employed in the Philippines
5. An unemployed Filipino residing in the Philippines
6. A Chinese businessman who have his domicile in the Philippines for 6
months
7. A Japanese who married a Filipina and residing in the Philippines for 2
years
8. A 2nd year Korean college student studying in the Philippines
9. A corporation incorporated under Philippine law
10. A foreign corporation doing business in the Philippines
11. Donation of a property in trust designated by the donor as irrevocable
12. Donation of a property in trust designated by the donor as revocable
13. A business partnership
14. A joint venture organized under a foreign law and is not operating in
the Philippines
15. An estate of a Filipino citizen judicially administered in the Japan
16. An estate of a Filipino citizen extra-judicially administered in the
Philippines
17. A taxable joint venture organized in the Philippines
18. A non-profit corporation organized in the Philippines

INDIVIDUAL TAXPAYERS

1. The National Internal Revenue Code of 1988 is

A. RA 9337
B. CA 466
C. RA 9504
D. RA 8424

2. Which of the following statements is not correct?

A. An individual citizens of the Philippines who is working and deriving income from
abroad as an overseas contract worker is taxable on income from sources within and
without the Philippines.
B. A seaman who is a citizen of the Philippines and who receives compensation for
services rendered abroad as a member of the complement of vessel engaged exclusively
in international trade shall be treated as a resident citizen.
C. A non- resident citizen who is not engaged in business in the Philippines is treated as
non-resident alien who is not engaged in business in the Philippines
D. An alien individual, whether a resident or not of the Philippines, is taxable only on
income derived from sources in the Philippines

3. Which of the following statements is not correct?

A. In the case of married individuals, where only one of the spouses is deriving gross
income, only such spouse shall be allowed the personal exemption.
 B In the case of married individuals, the additional exemptions maybe claimed by only
one of the spouses
C. As a rule, the husband shall be the head of the family and proper claimant of the
additional exemption
D. In the case of legally separated spouses, additional exemption maybe claimed by
the spouses who has custody of the children but shall not exceed four(4) for each
spouse

4. A resident citizen is taxable on all income derived from sources

A. Within the Philippines only
B. Without the Philippines only
C. Partly within and partly without
D. Within and without the Philippines

5. A non-resident citizen is taxable on all income derived from sources

A. Within the Philippines only
B. Without the Philippines only
C. Partly within and partly without
D. Within and without the Philippines

6. A resident alien is taxable on all income derived from sources

A. Within the Philippines only
B. Without the Philippines only
C. Partly within and partly without
D. Within and without the Philippines

7. A non-resident alien is taxable on all income derived from sources

A. Within the Philippines only
B. Without the Philippines only
C. Partly within and partly without
D. Within and without the Philippines

8. The following taxpayers are allowed to claim additional exemptions, except

A. Resident citizens
B. non- resident citizens
C. Resident aliens
D. Non-resident aliens

9. Which of the following statements is not correct?

A. If only one spouse is deriving taxable income, only said spouse may claim the
additional exemption
B. If both spouses earn taxable income only one of the spouses can claim additional
exemption
C. If legally separated from the spouse, the husband can claim the additional
exemption
 unless he waives the right in favor of his wife
D. An unmarried individual with a child out of wedlock can claim a personal exemption as a
head of the family plus exemption

10. A citizen of the Phils. who works and derives income from abroad is a resident if he
stayed outside the Phils.
A. For less than 180 days
B. For more than 180 days
C. For 183 days or more
D. For less 183 days

11. A citizen of the Phils. Who works abroad and whose employment requires him to be
physically present abroad most of the time during taxable years
A. Taxable on income within and without the Phils.
B. Taxable on income from without the Phils.
C. Exempt from income tax
D. Taxable income from within the Phils.

12. A citizen of a foreign country is considered a non-resident alien engaged in business in the
Phils. If he stayed inside the Phils.
A. For 183 days or more
B. For less than 183 days
C. For more than 180 days
D. For less than 180 days

13. Which of the following dependents is not qualified to entitle a taxpayer additional persona
exemption?
A. Recognized natural son who celebrated his 21st birthday during the taxable
year.
B. Legitimate natural son, 21 years old who got married on December 31, of the
year.
C. Legally adopted son, 21 years old son who became employed December 30, of
the
taxable year.
D. Widowed mother, who celebrated her 59th birthday during the taxable
year.

14. For income tax purposes, which of the following is considered head of the Family?
A. Married individual who has dependent minor child.
B. Married but legally separated individual with a dependent mother
who is 59 years old
C. Single individual with a common law life
D. Married individual even if he has no children

15. Which of the following dependents will qualify a single taxpayer as head of the family?
 A. Taxpayer’s brother, 22 years old, unemployed, unmarried, living with him
and
dependent upon him for support
B. Taxpayer’s sister, 18 years old, unemployed, unmarried living with
parents, but
dependent upon him for chief support
C. Taxpayer’s illegitimate son, 12 years old, unemployed, single, living
with him and
dependent upon him for support
D. Taxpayer’s godchild, 10 years old, dependent upon him for chief support

1. Winnings from gambling

2. Income from swindling
3. Indemnity for moral damages
4. Harvest of fruits from an orchard
5. Compensation income
6. Interest income
7. Amount received by the insured in excess of insurance premiums paid
8. Proceeds of life insurance received by the heirs of the insured
9. Gain on sale of goods by the home office to its branch
10. Gain on sale of goods and services between relatives
11. Gain on sale of goods by a parent corporation to a subsidiary
corporation

12. Appreciation in the value of land

13. Birth of animal offspring
14. Income of a registered Barangay Micro-Business Enterprise
15. Cancellation of debt out of gratuity of the creditor
16. Cancellation of debt by the creditor in exchange of services rendered
by the debtor

17. Matured interest from coupon bonds

18. Receipt of bank loan
19. Salaries of a minimum wage earner
20. PCSO or lotto winnings
21. Benefits from GSIS, SSS, Pag-Ibig or PhilHealth
22. Discovery of hidden treasure (taxable only when sold)
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