Exercise1: Income taxpayer classification

 DC – Domestic corporation  NRA-ETB-Non- resident alien

 RFC- Resident foreign engaged in trade or business
corporation  NT-Not a taxpayer
 NRFC-Non-resident foreign  RC-Resident Citizen
corporation  NRC-Non-resident citizen
 RA-Resident Alien
Person/Entity Classification
1. A fat Mexican tourist NRA-ETB-Non- resident alien
engaged in trade or business
2. A hardworking over seas Filipino worker RC- Resident Citizen
3. An expatriate employee NRA-ETB-non resident alien
engaged in trade or business
4. A Filipino who is privately employed in the Philippines DC- Domestic corporation
5.An unemployed Filipino residing in the Philippines RA- Resident Alien
6. A Chines businessman who has his domicile in the RA –Resident Alien
Philippines for 6 months
7. A Japanese who married a beautiful Filipina and has NRFC- non- resident foreign
been residing in the Philippines for2 years corporation
8. A 2nd year Korean college student studying in the NRA-ETB-Non-resident alien
Philippines engaged in trade or business
9. A corporation incorporated under Philippine law DC- Domestic Corporation
10. . A foreign corporation doing business in the RFC- Resident foreign
Philippines corporation
11. Trust designated by the donor as irrevocable NT- Not a Taxpayer
12. Trust designated by the donor as revocable NT- Not a taxpayer
13. A business partnership NRC-Non-resident citizen
14. A joint venture organized under a foreign law and is DC-Domestic Corporation
not operating in the Philippines
15. An estate of a Filipino citizen judicially administered NFA-ETB- non resident alien
in Japan engaged in trade or business
16. An estate of a Filipino citizen extra-judicially RA- Resident Alien
administered in the Philippines
17. A taxable joint venture organized in the Philippines DC- Domestic Corporation
18. A non-profit corporation organized in the Philippines NT-not a taxpayer
 Exercise2
Check the box that properly corresponds to the taxability of the following taxpayers
Taxpayer World Income Philippine income
1. Non-resident citizen /
2. Resident alien /
3. Non-resident alien engaged in trade or business /
4. Resident foreign corporation /
5. Resident citizen /
6. Non-resident alien not engaged in business /
7. Non-resident foreign corporation /
8. Domestic corporation /
9. Taxable trusts established by a Filipino citizen in /
the Philippines
10. Taxable estate of a non-resident citizen judicially /
administered abroad

Exercise3
Location and situs of income. Compute how much is earned with in and earned
outside the Philippines from each of the following independent cases:
Income description Within Without
1. Rey earned 100,000 interest income; 40%of these were from 60,000 40,000
non-resident debtors
2. A finance company earned 1,000,000 royalties from a 600,000 400,000
franchise; 40%of these were derived abroad
3. Raymond earned 100,000 rent from OFWs from his apartment 40,000 24,000
in the US. He also earned 40,000rent from his Philippine
condominium unit
4. Chester, a resident citizen, works home online and submits his 12,000 40,000
output to clients. He collected100,000 service fee from foreign
clients and20,000 from residents clients
5. Mark rendered audit services to client in Afghanistan 200,000
for500,000. The services were paid in Afghanistan
6. Jun has a store in tourist parkin Baguio City, Philippines. He 24,000 16,000
earned a total of 40,000 gain from selling souvenir items.
40%were from foreign tourist
7. Don Mariano sold at a gain of 2,000,000 to a client a broad a 1,200,000 800,000
commercial building locate din Quezon City, Philippines
8. John sold his stocks in a domestic corporation and 30,000 70,000 30,000
dividend income from a non-resident foreign corporation
9. Mansio received 20,000dividends from a domestic corporation 20,000 30,000
and30,000 dividend income from non-resident foreign corporation
10. Andrew received 40,000 dividends from a resident foreign 16,000 24,000
corporation; 60%of its historical income is from the Philippines
11. CDO, Inc. Manufactures in the Philippines and sells to 50,000 50,000
unaffiliated export clients. A total of 100,000 gross income was
earned during the period
12. ABC Manufactures abroad and sells to its Philippines branch 150,000 200,000
at market prices. Production cost abroad were 200,000. Billings to
branch totaled 300,000 while branch sales totaled 450,000
13. James received 100,000 dividends from a resident foreign 40,000 60,000
corporation which realized 40%of its income in the Philippines
14. Ellis received 20,000 dividend from a non-resident foreign 20,000
corporation.
15. Davao plant manufactures tables and sells to resident clients. 400,000
A total of 400,000 gross income was realized during the period