Which is deductible tax expense against gross income?

Cory, single received compensation income of P250,000 before deducting SSS contribution in the
amount of P5,000. Compute her income tax due.

Answer: 0

Which of the following income is required to be filed in a quarterly income tax return?

Which is not subject to taxation?

Which is not element of an employer-employee relationship?

Payment of fixed wages

Which of the following cannot claim deductions from gross income despite actual engagement in
business?

Non-resident alien not engaged in trade/business

Larry married with one dependent child, received P255,000 business income. He also derived an income
of P15,000 from interest on bank time deposit. Compute the income tax payable of the taxpayer.

Answer: 1,000

Who is subject to the fringe benefit tax?

Managerial/ supervisory employees

An accounting period of (120 twelve months ending on the last day of December)

Calendar year

Which of the following tax refunds is taxable?

Fringe benefit tax

Tax base on a fix percentage of the amount of property, income or other basis to be taxed

Mr. Lavarias had a business net income of P600,000. He also earned P10,000 commission from selling
cellular cards and P24,000 dividends from domestic corporation. Compute his taxable income

Answer:
Gem Merchandising paid P350,000 to employees, net of P50,000 total withholding tax on compensation.
What is the deductible amount of expenses by the employer?

Answer:

Jonell is paid a monthly salary in the amount of P20,900. For the year 2021, he received a 13th month
pay and other benefits totaling P21,000. Compute his income tax due.

Answer:

What is the theory of taxation?

Necessity

A taxpayer, married with a qualified dependent child had the following data for the taxable year 2022.
Gross Income Phil. P800,000; Gross income USA P600,000; Expenses Phil. P400,000; Expenses USA
P300,000. If the taxpayer is nonresident citizen his taxable income is:

Answer: 400,000

Which of the ff is an income subject to basic tax?

Prizes from USA lotto

In 2021, XYZ Corporation provided 3-day vacation in Baguio City to all of its employees of which 80% are
rank and file. Total expenses incurred by the company for the said vacation amounted to P1,200,000.
How much is the total deductible expense?

Answer: 1,329,231

What are allowable deductions against gross income?

Business expenses

What is a national tax?

Income tax

What is the purpose of taxation?

To raise revenue

What is not an excise tax?

Deductions are allowed to

Taxpayers engaged in business

The excess of 13th month pay and other benefit is

Subject to regular tax

The regular corporate income tax under create law is

25% of taxable income

When tax is collected upon someone who is effectively reimbursed by another, the tax is regarded as

Indirect

Mr. James wishes to file his 2021 income tax return. To avoid penalty, he must file his return on or before

Which of the following is not included in the computation of taxable income?

Which of the following instances may give rise to short accounting period?

All of the above

The de minimis benefit not exceeding their thresholds are

Exempt from income tax

All are ad valorem taxes, except one. Select the exception

Poll tax

Mrs. Mira Santos had a gross taxable compensation income of P500,000. She also earned an additional
P3,000 by investing her money in time deposits plus P4,000 interest income from lending money to a
friend. Compute her taxable income

Answer: 504,000

A resident corporation is taxable on

Philippine taxable income

Which is a deductible expense?

Marketing and advertising expense

Which is not deductible against gross

All of these

A method of accounting where income is reported in the year it is collected, actually or constructively

Accrual basis
Which is not included in the gross taxable compensation income of an employee?

13th month pay and other benefits not in excess of 90,000

A taxpayer, married with a qualified dependent child had the following data for the taxable year 2022.
Gross Income Phil. P800,000; Gross income USA P600,000; Expenses Phil. P400,000; Expenses USA
P300,000. If the taxpayer is resident citizen his taxable income is:

Answer: 700,000

The sources of revenue should be sufficient to meet the demands of public expenditures. This refers to

Which is not a part of de minimis benefit?

13th month pay

Situs of taxation on income from sale of property purchased.

An accounting period of twelve (12) months ending on the last day of any month other than December.

Fiscal year

Licensing of business or profession is an exercise of

Police power

In 2021, XYZ Corporation provided 3-day vacation in Baguio City to all of its employees of which 80% are
rank and file. Total expenses incurred by the company for the said vacation amounted to P1,200,000. The
fringe benefit tax expense is

Answer: 129,231

A taxpayer paid P45,000 property insurance having 12-month coverage starting March 1, 2020. Compute
the deductible insurance expense in 2021?

Answer: 37,500

Incidence of taxation means

Payment of tax

The ff are nature of taxation, except

Subject to the approval of the people

A taxpayer, married with a qualified dependent child had the following data for the taxable year 2022.
Gross Income Phil. P800,000; Gross income USA P600,000; Expenses Phil. P400,000; Expenses USA
P300,000. If the taxpayer is nonresident alien engage in trade or business in the Philippines, and his
country grants P40,000 as personal exemption for married individuals, his taxable income is

Answer: 400,000

The least source of tax laws

Revenue regulations

A taxpayer, married with a qualified dependent child had the following data for the taxable year 2022.
Gross Income Phil. P800,000; Gross income USA P600,000; Expenses Phil. P400,000; Expenses USA
P300,000. If the taxpayer is nonresident alien not engage in trade or business in the Philippines, and his
country grants P40,000 as personal exemption for married individuals, his taxable income is

Answer: 800,000

The following relate to a corporate taxpayer: Capital loss – current year P 60,000; Capital gain – current
year 140,000; Net capital loss 40,000; Net income 75,000. What is the net capital loss carry-
over?

Answer: 80,000

Which is not allowed the option to be taxed at 8%