- Chapter 5 - Percentage Tax ter : _ seller of service which is specifically subject to percentage ta, 1 t S iy VAT fPtesteomonti sales or receipts exceeded the VAT-threshola calle ¥ 6. Aseller is subject to percentage tax even if he registered as yap a) his annual sales do not exceed the me Sie pale 4 jers are vatable on their transport of cargoes orb; ; t Dee aris sear aC Arierd sre varie on CaM transport of pat whi it ow F_9. International carriers are vatable on their transport of Cargoes oy b- 10. Franchise grantees of private franchises are vatable, « True or False 2 | 1. Franchise grantees of transport operations are subject to percentage gro Wy Winnings from cockpits are subject to Percentage tax. cal t Franchise grantees of the government on utilities are subject to pe e tax. 5 " 4. The percentage tax of banks is called “premiums tax.” a FS. The overseas communication tax applies to both incoming and a. dispatch of messages or communication. 7 © 6. The sale of water by water utility franchise grantees is subject to VAt, 8. Ad . 7. The sale of electricity by electric utility franchise grantees is ‘subject to ope! 1 8. The sale of stocks directly to buyers is subject to percentage tak, a. 9. The sale of stocks by a dealer through the PSE is subject to percentagera — »b | 10. The follow-through offering of listed enterprises is exempt from AR. tax. . On Multiple Choice - Theory: Part 1 1. The percentage tax rates on services specifically subject to percentag ranges from a) Kol 1% to 3% 1% to 3% ; (B) Rf 1% to 30% d. 1% to 30% 2. To be subject to the general percentage tax, a taxable person must not! a. VAT-registered. c. Operating below the VAT threshold. b. Non-VAT-registered. d. All of these sea 20s 3. Which domestic common carrier is Specifically subject to percentage ir @) Common carrier byland we es Common carrier by air ie ¢. Common carrier by sea 5 d. Allofthese ub 4. From which of the following sources does the.3% commalll to, cifically apply? a Transport of passengers c. Both A and B b Transport of goods d. Neither A nor B c qa 182_ Percentage Tax 15 chat se percentage tax specifically imposed on certain domestic transporters is ed i ommon carrier’s tax ¢, Transporter’s tax v sripper’s tax d. Gross receipt tax ch is not specifically subject to a percentage tax? International sea or air carrier Domestic common carrier by land Domestic common carrier by sea @) AandB From which of the following sources is the gross receipt of an international carrier subject to percentage tax? 4, Outgoing transport of passengers .) Outgoing transport of cargoes © Incoming transport of passengers or cargoes d. None of these ‘A domestic carrier which is also engaged in international transport operation is subject to (@) VAT c. Excise Tax b. Percentage tax d. VAT and Percentage tax |. On transport of excess baggage, cargoes or mails, an international carrier shall pay a. Percentage tax if it is below the VAT threshold. b. Percentage tax even if it is above the VAT threshold. © VAT regardless of whether it is below or above the VAT threshold. 4, no business tax. . Which is a VAT-exempt receipt to a bus operator? Receipts from passengers Receipt from cargoes Receipt from baggage None of these To an operator of a domestic sea transport vessel, which of the following is vatable? 2. Fares from passengers _¢, Fares from cargoes and mails Fares from baggage (4. All of these 2, “ Toan international carrier, which is subject to percentage t2%? Transport of passengers = age of cargoes, mails or baggage Neither A nor B 183“aio vga 2201) exempt from business tax? aie fren Car for hire without chauffeur Grecian operator of a domestic aircraft, which is vatable? Sec fon passengers _c. Fares from cargoes and mails b. Fares from baggage All of these Multiple Choice - Theory: Part 2 : 1. Which of these is vatable? ori eee ae a. City taxis ¢ Provincial buses 41. What is ¢ (BD Sea vessels d. City buses receipts nt a VAT 2. Which is subject to 3% percentage tax? b. 3% PE a. Kalesa ¢. Bulldozer b. Bangka Acar for hire 12. What is t ) nat receipts e3 3. A jeepney operator with gross receipts from Passenger fares a VAT P3,000,000 in any 12-month period is subject to nee b. 3% pe ¢ @ 3% percentage tax. —_c. 12% VAT. facta 8% percentagetax. _ d,0% VAT. fa: A radon 4. Franchise grantees of telephone, telegraph, and other ee juipment are subject to percentage tax on b. 3% © Overseas dispatch of message ” Ps be Domestic dispatch of message ih .01 4, Both AandB 4 * The gross d. Neither A nor B i b. 50 5: Which is not exempt from the overseas communication tax? j 1 2 ey : (ay PEZA locators ¢. Diplomatic services ‘ Which is b.. Government 4d, News services pb Banks . oes 6. The overseas communication tax is Mut a aeiabactrevenue: ©. 3% of revenue, “ple ¢ (b) 10% of grossreceipts. 4. 3% of gross receipts * The = a oe 7 Which sawvatable receipt to a franchise telephone Sage ores a. Receipt from domestic dispatch of mentees ik citer b. Receipt from incoming calls a pine c. Receipt from outgoing calls 184_ percentage Tax £5 chant 4) pat A and B enofthe following franchisees is subject to the franchise tax wri jectricty ‘c. Water utility gos rf ‘transportation d. Telephone «franchise tax on radio or television franchisees is i, 2ivok groseenmbnameaie. 2e¢ otrevenue. py -smofrevenvey @.3% of gross receipt. aio or television broadcasting company with annual gross receipt not j ered 9,000,000 shall pay pt n a. VAT c. 2% percentage tax jp.) 3uopercentagetax —_d.no business tax. U 11, What is the business tax liability of gas and water utilities with gross receipts not exceeding P10,000,0007 a VAT (©. 2% percentage tax b. 3% percentage tax vd. Exempt 12, What is the business tax liability of gas and water utilities with gross receipts exceeding P10,000,000? a VAT (©2% percentage tax b. 3%percentage tax. Exempt 43, Aradio or television broadcasting company with annual gross receipts of P12,000,000 shall pay a) VAT c.2% percentage tax b. 3% percentage tax d.no business tax. 414. The gross receipt tax on long-term interest income is a 7% 3% b. 5% d1% 15. Which is subject to the gross receipt ‘tax? @ Banks _¢-Pawnshops >. Quasi-banks (a/all of these Multiple Choice - Theory: Part 3 (/ he gross receipts of banks pertain to Principal collection 2 Interest collection ¢_ [rineipal and interest collection None of these ss aChapter 5 ~ Percentage Tax 6- ote Which or tax? eet a Ree ee scurance 1. 7396 b. asian d. All of these eK 3. The premiums tax on life insurance applies to ai is whic rt .. Refunded premium 3, We wi Direct premium c.Rel a Maiieurance premium 4. All of these 9 wi 4. Which is part of gross receipts for purposes of the premiums é g w insurance? 5 Aa i c. Promissory notes which b. Bills and coins (GA of these 7. i; \ pb. 0 5. The gross receipt tax on banks from other items of gross income agite «€ N interest income is a. N (a) ™% 6.3% b. 5% 4.1% $300 45, Whic from 6. Statement 1: Reinsurance premium is exempt from the. Percentage tay, a Statement 2: Reinsurance premium is exempt from VAT, - o 4 sf a Sey 1 Which statement is correct? _ pent PS a. Statement 1 (c.Both statements yr Fi b. Statement 2 d.Neither statement Itiple 7... Agents of foreign insurance are subject to oan aS a. 2% premiums tax 4% premiums tax 1. Whi b. 5% premiums tax 10% premiumstax a. Tay 8S i 8. Which is not subject to amusement tax? aaa c a. Places of boxing exhibitions a. o No xeF Fee #1 b. Places of professional basketball games o — c.. Cockpits 2 Th (@) Golf course s 9. The premiums tax on insurance premium is ea (a) 2% 65% a. b. 3% 4.7% 31 10. The percentage tax for operators of race tracks is 2. a 10% €.18% S b. 15% (4)30% c a 11. Operators of discos or cabarets are subject to an amusemen a 10% (c/18% ‘ b. 15% 4.30% s 186rer 5 percentage Tax ip cal g ae ©.5 p 4% (4.30% which winning is subject to percentage tax? Winnings from lotto * winnings from derby @ Winnings from horse race $ winnings from gambling hich of the following events is not exempt from amusement tax? ® | World championship , Oriental championship (&) National championship d. None of these eneral percentage tax on winnings from a horse race is % . Which is incorrect with respect to the requisites of exemption of receipts m professional boxing? (q) Both contenders must be Filipinos b. The promoter must be a Filipino or corporation with at least 60% Filipino ownership c. The competition must be a world or oriental championship 4. Allofthese lultiple Choice - Theory: Part 4 7 . Which of the following sales is subject to stock transaction tax? a. The sale by an investor ofa listed stock directly to buyer b. The sale bya listed corporation of shares through the PSE .) The sale by an investor of alisted stock through the PSE d. The sale bya listed corporation of shares directly to buyer 2. The IPO taxis payable by a. The buyers of IPO shares b.) The issuing corporation © Both the buyer and issuing corporation. 4. the Philippine Stock Exchange 3. The stock transaction tax is withheld and remitted by. a. The Philippine Stock Exchange b.’ The stock broker © The owner of stocks 4. The buyer of the stocks 4. Statement initi i 1: All initial public offerings are subject to IPO tax. Statement, -through Ea terct from IPO tax—— ll Kat 99s signthar 50 28 eget 11: The percentage ot bode als In primary offerings dete, ‘the outstanding shares after the IPO. enenen 2: The percentage of stock sale in secondary determined using the outstanding shares before the IPO. For is incorrect? Ee eres 1 c. Both statements b. Statement 2 Neither statement A public corporation is a corporation at least 50% in the value of outstanding capital stock is owned by i120 om0¥ a. less than 20 shareholders. b,” more than 20 shareholders. uh c. 20 ormore shareholders. > d._ atleast 20 shareholders. it f smerq sdT 7. If the block sale of primary shares exceeds 1/3 of the outstanding 102 oT after the IPO, the IPO tax is on aati a 4% )1% dolla b b. 2% I % of 1% ; Multiple- ‘ 21009 alqity) 8. What is the tax rate on the sale of stocks through the facilities of the PSE? 1. Grace . 1% Youtrio MidW excee b. 2% (of 1%)” te odT a P ovd sine sett af bv 9. The percentage tax on double forecast, quinella, or trifecta bets on race is roa «B 2. Tony a. 3% 6.5% May. 0, 4% 4.10% oq et xen O$oaE perce " oud se a 10. Which is subject to premiums tax? ~~ ‘a/ Health insurance premiums | b. Reinsurance premiums Dom ¢. Property insurance premiums of P; d. Fire insurance premiums 11. Allof the following pays monthly percentage tax, except B ee grantees of gas and water " ._ Domestic carriers and keepers of garage (€) Proprietors of cockpits i | Life insurance companies i 188tage Tax 5 Percen choot sens specifically subject to percentage t 42. Whit edit cooperatives mat 2 ty insurance companies b. Mernational carriers ; G Domestic shipping companies ;ch is the correct percentage tax on the foll i ne renin following service providers? b._ Keepers of garage - 5% © "Franchisees of water utility ~ 3% 4._ Life insurance companies ~ 5% tu: interest income on loans is Specifically subject to percentage tax if eared uasi-banking institution bya a. Lending investor All of these p. Dealer in security +45. The gross receipt tax does not apply to ‘Bangko Sentral ng Pilipinas. rural banks. c. urban banks. d. industrial banks. v Multiple-Choice - Problems: Part 1 1. Grace is a proprietor of a mini-store with sales in any 12-month period not exceeding P1,900,000. She shall pay a.) Percentage tax c. Excise tax b. VAT d. Percentage tax and Excise tax Tony, a VAT-registered taxpayer, reported P200,000 sales in the month of May. Tony's annual sales never exceeded P1,800,000. Compute Tony's percentage tax. _a PO c.P24,000 b. P6000 d.P54,000 srted a total receipt Donel, a non-VAT-registered operator of jeepney, repo ansport. et P200,000 during a month, including P20,000 rentals for cargo tr ‘ompute the percentage tax. n 0/5: Bag AER unl HOOK Sy: b. P5,400 P6600 Mr. Ngina owns and o} { unit. He also teaches 45a" accounting perates a taxi unit. He is | at Professor the University of Baguio and renders taxation advisory eo, Various clients. Mr. Ngina is registered as a VAT-taxpayer- In He had the following receipts: eer189Chapter 5 — Percentage Tax xe | P. 200,000. Compensation income - teaching 90 000 erase profesional practice : ' Receipts from professi Total 2_600,000 Compute the percentage tax payable of Mr. Ngina for March 2029, oP ¢.P12,000 SOR SRY ® P1,500 d. P18,000 - 5, In the immediately preceding problem, compute the total receipts P Ni subject to the VAT. as) i Ln .P400,000 Lier hn (& P350,000 d. P550,000 hae 6. Michael Jackson is an operator of a fleet of 10, taxis operated under “boundary system.” A total of . P-60,000 LP 240,000 . Geneva Corporation, a non-VAT taxpayer, leases commercial spaces to Various businesses. During a month, it received P142,500 rentals, net of 5% ‘reditable withholding tax. Compute the percentage tax. fen P4275 142,00 /ar » P4061 @P 4,500 Almendras Corporation sells bread to various stores and makes ps0. Og Pouthly sales on the average, During the month, it made total sale of 200,000 out of which only P160,000 was collected. Compute Pereentage tax, Boe * 3*fo a Bd ¢P-4,800 » P4500 GP 6,000 195