Due to his expertise, Engr. Pedro D.

Magiba (a freelancer) was hired by a foreign petroleum contractor in

Thailand to provide technical assistance for two months from February to March. He was hired again for
the months of June-July and October-December of the same taxable year. Engr. Pedro D. Magiba is a

a. Resident citizen

b. Nonresident citizen

c. Special Filipino employee

d. None of the above

• Answer: B

• Engr. D Magiba's employment in Thailand requires him to be physically present abroad most of the
time during the taxable year [one hundred eighty three (183) days or more). It is important to know the
source of income for income tax purposes (i.e. from within without the Philippines) because:

a. Some individuals and corporate taxpayers are taxable based on their worldwide income while others
are

taxable only on their income from Philippines

b. The Philippines imposes income tax only on income from

c. Some individual taxpayers are citizens while others are aliens.

d. Export sales are not subject to income tax.

• Answer: A

Who of the following individual taxpayers is taxable on income derived from within and without the
Philippines?

a. Pedro, a native of Bacolod City, working as overseas contract worker in Iraq.

b. George, naturalized Filipino citizen and married to a Filipina. He had been living in Pampanga since
1990.

c. Pao Gasul, Spanish citizen, a resident of Madrid, Spain, spent a one (one) Week vacation in Boracay.

d. Lee Min Ho, Korean singer, held a 3-day concert in Manila.

• Answer: B

Who of the following individual taxpayers is taxable on income derived from within and without the
Philippines?

a. Pedro, a native of Bacolod City, working as overseas contract worker in Iraq.

b. George, naturalized Filipino citizen and married to a Filipina. He had been living in Pampanga since
1990.

c. Pao Gasul, Spanish citizen, a resident of Madrid, Spain, spent a one (one) Week vacation in Boracay.
d. Lee Min Ho, Korean singer, held a 3-day concert in Manila.

• Answer: B