DONORSTAX, VAT & OTHER PERCENTAGE TAXES

By Atty. Antonio A. Ligon, CPA

INSTRUCTION: KINDLY PUT NAME (SURNAME FIRST) & SECTION

1. An act of liberality whereby one disposes gratuitously of a thing or right

in favor of another who accept it is :
a. Succession
b. Tradition
c. Occupation
d. All of the above
e. None of the above

2. The gift tax is imposed on the transfer of the property ( not on the
property itself ) which is why it has been sustained as a (an)
a. Excise tax c. donee’s tax
b. Property tax d. poll tax

3. Sophia went to Triple 8 Resort and was given a prize of P 50,000 by the
resort for being its 1000th guest. Is the prize subject to donor’s tax?
Donor’s Tax Income Tax
a. Yes Yes
b. No Yes
c. Yes No
d. No No

4. The following are the requisites of a donation for purposes of the

donor’s tax except:
a. Capacity of the donor
b. Capacity of the donee
c. Delivery of the subject matter of gift
d. Donative intent

5. One of the following is a valid donation

a. Oral donation of cell phone worth P4, 500
b. Oral donation of a passenger jeepney worth P150,000
c. A parcel of land worth P 5,000 in private document
d. A parcel of land worth P 500,000 in a private document

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6. Statement 1 When the donee is exempt from income tax the donation
made by taxable individual is also tax exempt ;
Statement 2
Proceeds of life insurance policy on the life of the decedent where the
designation of the beneficiary is irrevocable is always subject to donor’s
tax. Statement 1, Statement 2 is
a. True, False c. False, False
b. False, True d. True, True

7. Which of the following is not considered as an intangible property

In the Philippines?
a. Franchise which must be exercised in the Philippines
b. Shares of stock issued by domestic corporation
c. Obligations of bonds issued by foreign corporation with business situs
in the Philippines
d. Shares of stocks issued by a foreign corporation 51% of the business
of which is located in the Philippines

8. Mr. Ho donated to his son a parcel of land worth P 3 M, and to his

neighbor his car worth P 1M, the donor’s tax rate to be paid on his son
is lower than the neighbor’s
a. True b. False c. it depends d. none of the above

9. Christel, single, gave an outright gift of P 400,000 to Golda, who needs

money to pay for medical expenses
a. Donation is not taxable because the gift is outright
b. The donors tax is P 24,000
c. The donor’s tax is P 9,000
d. Donation is deductible from gross income tax of Christel
( Computation: 400,000- 250.000 x 6%)
10. Dominque donated the following :

February 14, 2019 t stranger -------- P 4,000,000

April 14, 2019 to son------------------ P 2,000,000
September 14, 2019 to father P 1,000,000
Compute properly the donor’s tax and date of payment,

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Gift: Amount Donor’s Tax
1. February 14, 2019 P 4,000,000
P 4,000,000
Less: Exempt Gift (250,000)
P 3, 750,000 P 225, 000
2.April 14, 2019 P 2,000,000
P 2,000,000
Add; February 14 gift 4,000,000
Total Gift P 6,000,000
Less: Exempt Gift (250,000)
Taxable git P5,750,000
Donor’s tax @ 6 % P 345,000
Less: previous DT paid 225,000 120,000
3.September 14, 2019 P 1,000,000
P 1,000,000
Add; February 14 4,000,000
April 14, 2019 2,000,000
Total P 7,000,000
Less: Exempt Gift (250,000)
P 6, 750,00
DT @ 6 % P 405,000
Less: DT paid
Feb 14, 2019 225,000
April 14, 2019 120,000 60,000

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II VAT & Other Percentages Taxes
11. one of the following is not a major business internal revenue taxes in the
tax code
a.Value- added tax c. income tax
b. excise tax d. percentage tax
12. Aofi Is a lessor of real property and personal property (cars)
The tax that she pays is
a. Excise tax c. percentage tax
b. Value added tax d. none of the above
13. Asthrid, practicing CPA, also professor of Bulacan State University. In the
preceding year, her gross receipt from accounting practice was P 2,000,000
while total compensation as college professor is is P 200,000.
a. She is subject to VAT effective January of the current year
b. she may be subject to Vat if she voluntarily registers under the vat system
c. she is not required to pay Vat or any other business tax
d. she is required to pay professional tax but not Vat

14. 3 of the following are exempt from vat. Which is the exception?
a. sales of medicines to out-patients of a hospital
b. services rendered by persons subject to percentage tax
c. receipts from leasing of real properties
d. export sales by persons who are not vat registered

15. The following are exempt from vat except one:

a. Services by agricultural contract growers and milling for others of
palay into rice, corn into grits and sugar cane into raw sugar;
b. Medical, dental, hospital and veterinary services
c. Services rendered by individuals pursuant to an employer- employee
relationship;
d. Services rendered by doctors and veterinary doctors

16. Transaction by a registered taxpayer which is not subject to VAT

a. foreign currency denominated sale
b. export sale
c. transactions deemed sale
d. sale of services rendered in foreign countries

17. One of the following is subject to 3% percentage tax

a. Establishments whose annual gross sales of receipts exceed P
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3,000,000 and who are VAT registered
b. Businesses whose annual gross receipts of sales exceed P 3,000,000
and who are not VAT registered.
c. VAT registered establishments whose annual gross receipts do not
exceed P 3,000,000
d. Establishments’ whose annual gross sales do not exceed P 3,000,000 and
who are not VAT registered.

18. Gross receipts tax is a business tax paid by

a. Hotel Operator c. franchise holder
b. insurance company d. bank

19. Statement 1: A radio broadcasting company whose gross annual receipts

do not exceed P 10,000,000 shall not be subject to VAT even if decides to be
subject to Vat.; Statement 2: A television broadcasting company whose
gross annual receipts do not exceed P 10,000,000,000 but who voluntarily
registers under the VAT system cannot revert back to franchise tax even if it
decides to revoke its VAT registration

a. Statement 1 and 2 are false

b. Satement 1 and 2 are true
c. Statement 1 is true while statement 2 is false
d. Statement 1 is False while statement 2 is True

20. Jan. a full-time government employee, ate in one of the fastfood chain
in Marikina . He was issued the following receipt:

Greenwich _ Marikina City Branch 0210

269 Rizal Avenue Street
TIN # 123-456-789 VAT
BIR Permit No. 987-654-321
Serving # 07
08/20/2021 9:00 APP OR # 00789
SOLO Meal --------------------- P 81
Large Ck----------------------- 12
Item ------------------ 93
Vatable ------------------------ 83.04
Vat exempt -------------- 0.00
12% Vat ---------------------- 9.95
Total Due ----------------------- 93
CASH ------------------------------ 500
Change Due--------------------- 407
a. The amount of P 83.04 represents the input tax of the fastfood chain
b. The input deductions form the output of Jan is P9.95
c. The total invoice Price of P93 is inclusive of 12%
d. Jan has been subjected to Vat twice; fist on P 93 and the P 9.96

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