Reference no: EM132600183

Questions -

Q1. The term applies to a foreign corporation not engaged in trade or business within the Philippines.

a. Resident foreign corporation

b. Nonresident foreign corporation

c. Multinational corporation

d. Petroleum contractor

Q2. Which of the following corporations shall be taxed upon its taxable income derived during each taxable year from all sources within and without the Philippines?

a. Domestic corporation

b. Resident foreign corporation

c. Nonresident foreign corporation

d. None of the choices

Q3. A domestic corporation has the following data for the fiscal year starting June 1, 2016 and ending May 31, 2017:

Gross income, Philippines P 5,000,000

Gross income, USA 10,000,000

Deductions, Philippines 2,000,000

Deductions, USA 4,000,000

How much is the income tax due for the fiscal year ending May 31, 2017?

a. P 3,150,000 c. 2,880,000

b. P 2,962,500 d. 2,700,000

Q4. Effective January 1, 2000, the President, upon the recommendation of the Secretary of Finance, may allow corporations the option to be taxed at 15% of gross income, The following are the certain conditions except

a. A tax effort ratio of twenty percent (20%) of Gross National Product (GNP);

b. A ratio of forty percent (40%) of income tax collection to total tax revenues;

c. A VAT tax effort of four percent (40%) of GNP

d. A 0.9 percent (0.9%) ratio of the Consolidated Public Sector Financial Position (CPSFP) to GNP.

Q5. Which of the following statements is incorrect?

a. The option to be taxed based on gross income shall be available only to firms whose ratio of cost of sales to gross sales or receipts from all sources does not exceed fifty-five percent (55%).

b. The election of the gross income tax option by the corporation shall be irrevocable for three (3) consecutive taxable years during which the corporation is qualified under the scheme.

c. The term 'gross income1 derived from business shall be equivalent to gross sales less sales returns, discounts and allowances and cost of goods sold.

d. "Cost of goods sold" shall include all business expenses whether directly or not directly incurred to produce the merchandise to bring them to their present location and use.

Q6. Proprietary educational institutions and hospitals which are nonprofit shall pay a tax of how much on their taxable income at what percent?

a. Thirty percent (30%) c. Fifteen percent (15%)

b. Twenty-five percent (25%) d. Ten percent (10%)