1. The least source of tax laws
a. Statutes
b. Presidential decrees
c. Revenue regulations
d. Tax treaties or conventions
2. It is a national tax as to imposition but local tax as to collection
a. Franchise tax
c. Professional tax
b. Real property tax d. Amusement tax
3. For income taxation purposes, the term “corporation” excludes one of the following:
a.
b.
c.
d.
Ordinary partnership
An incorporated business organization
General professional partnership
Business partnership
4. A resident citizen is taxable on all income derived from sources
a.
b.
c.
d.
Within the Philippines only
Without the Philippines only
Partly within and partly without
Within and without the Philippines
5. A non-resident citizen (NRC), resident alien (RA), and non-resident alien (NRA) are taxable on all income
derived from sources
a.
b.
c.
d.
Within the Philippines
Without the Philippines
Partly within and partly without
Within and without the Philippines
6. Which is a function of the BIR?
a) Collection of tax
b) Levy of real property when taxpayer is delinquent
c) Distraint of personal property when taxpayer is delinquent
d) All of the above
7. Kyra Montalbo, Filipino, resident of Makati, working as an accountant in SGV in Makati, was granted a
scholarship to study in Stanford University in the United States. She left the Philippines on
September 1, 2018, lived in Palo Alto, California, USA until she graduated on May 15, 2020. She
originally wanted to return to the Philippines after graduation, but was immediately hired by KPMG in
New York. She began working in New York on May 16, 2020. For tax purposes, Sabrina in 2020 is
classified as a:
a) Resident citizen
b) Non-resident citizen
c) Dual citizen
d) None of the above.
8. For taxable year 2020, does Kyra need to file an income tax return with the BIR?
a) No, if the salary from KPMG (New York) is her only income in 2020.
b) Yes, if she has other income in the Philippines not subject to final taxes.
c) All of the above.
d) None of the above.
9. Daryl Calatong, a 25-year old Filipino model residing in Paco, Manila vacationed in Vienna, Austria in
2019. While in Vienna, he was awarded a cash prize worth $1.0 Million for being voted by the
Ministry of Tourism as the most handsome tourist in Vienna in 2019. He opened a bank account with
Citibank (Vienna). Which among the following shall be included in his income tax return?
a) Only the interest income from his bank account in Vienna.
b) Only the cash prize won in Vienna.
c) Both.
d) None.
10.
Geo, resident citizen from Bulacan with 12 dependent children, has the following data (in ₱) for the
current taxable year:
Gross income from business, Philippines
Gross income from business, Singapore
₱
2,350,000
3,200,000
Business expenses, Philippines
1,000,000
Business expenses, Singapore
750,000
Interest income from ₱ deposit in BPI (Manila)
150,000
Interest income from $ bank deposit in BPI (Manila)
25,000
Interest income from $ deposit in BankAmerica (New York)
55,000
Dividend income from Jollibee Foods Corporation
65,000
Dividend income from Microsoft Corporation
119,000
What is the net taxable income of this taxpayer in his ITR of the current taxable year?
11.
12.
a) ₱5,724,000
c) ₱3,974,000
b) ₱5,274,000
d) ₱3,794,000
If Creditable Withholding Tax of ₱300,000 were withheld from his gross income in the Philippines,
what would be his tax payable reflected in the ITR?
a) ₱812,680
c) ₱65,000
b) ₱821,680
d) ₱1,231,520
What is his total income subject to final taxes in the current taxable year?
a) ₱240,000
c) ₱414,000
b) ₱175,000
d) None of the above.