No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Tax Miscellaneous Topics
Mobile
: 0927 283 8234
Telephone
: (043) 723 8412
Gmail
: www.icarecpareview@gmail.com
Tax 04-15
1. An individual’s income tax return is filed in either of the following manner, except
a. Manual Filing
b. Electronic Filing and Payment System
c. eBIR forms
d. Either of the foregoing as the case may be.
2. The following individuals are not required to file an annual income tax return, except
a. Earning purely compensation income whose annual taxable income does not exceed
Php250,000
b. Individual who satisfied the requisites of substituted filing
c. An individual whose income was already subjected to creditable withholding tax
d. A minimum wage earner with no other income.
3. An individual earning mixed income (busines and compensation) are required to file a quarterly
and annual income tax return. The following are the due dates, except
a. 1st Quarter – April 15 of the current calendar year
b. 2nd Quarter – August 15 of the current calendar year
c. 3rd Quarter – November 15 of the current calendar year
d. Annual ITR – April 15 of the following year
4. In case of estate or trust subject to income tax, the following are the persons who will file the
estate’s or trust’s income tax return, except:
a. Guardians
b. Trustor
c. Executor/Administrator
d. Receiver
e. Conservator
5. The following are required (mandated) to use the Electronic Filing and Payment System (EFPS) of
the BIR, except:
a. Large Taxpayers duly notified by the BIR
b. Top 20,000 Private Corporations duly notified by the BIR
c. Top 5,000 Individual Taxpayers duly notified by the BIR
d. Taxpayers who wishes to enter into contract with government offices
e. Corporations with paid-up capital stock of Ten Million Pesos
f. PEZA-registered entities and those located within Special Economic Zones
g. Government Offices, in so far as remittance of withheld VAT and business tax is concerned
h. None of the avbove
6. Government entities created by law, executive order, decree or other issuance, in charge of
promoting investments, granting and administering tax and non-tax incentives, and overseeing
the operations of economic zones and freeports in accordance with their respective special
laws.
a. Fiscal Incentives Review Board
b. Investment Promotion Agencies
c. Freeport zones
d. Export enterprise
7. It exercises policy making and oversight functions on the administration and grant of tax
incentives by the IPAs and other government agencies administering tax incentives.
a. Bureau of Internal Revenue
b. Department of Finance
c. Fiscal Incentives Review Board
d. Department of Trade and Industry
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AESCARTIN/TLOPEZ /JPAPA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile
: 0927 283 8234
Telephone
: (043) 723 8412
Gmail
: www.icarecpareview@gmail.com
8. It refers to any individual, partnership, corporation, Philippine branch of a foreign corporation,
or other entity organized and existing under Philippine laws and registered with an IPA Agency
excluding certain service enterprises.
a. Registered business enterprise
b. Domestic market enterprise
c. Export enterprise
d. Freeport zone
9. Which of the following service enterprises may be considered registered business enterprises
(RBEs)?
a. Customs brokerage
b. Janitorial services
c. Banking and other financial services
d. All of the above
10. It contains the priority projects or activities that are included in the Philippine Development Plan
or its equivalent, or other government programs, the scope and coverage of location and
industry tiers, and the terms and conditions on the grant of enhanced deductions, as set forth in
Section 300 of the Tax Code, as amended
a. Investment Priority Plan
b. Incentives Priority Plan
c. Strategic Investment Priority Plan
d. Special Incentives Priority Plan
11. Under CREATE, the following types of tax incentives may be granted to registered projects of
activities:
a. Income tax holiday (ITH)
b. Enhanced deductions
c. Special corporate income tax (SCIT) of 5% of gross income
d. All of the above
12. Enhanced deductions may be granted simultaneously with SCIT.
a. True
b. False
13. Under CREATE, net operating loss of a registered project or activity during the first ___ years
from the start of commercial operations may be carried over within the next ___ consecutive
taxable years immediately following the year of such loss.
a. Three, three
b. Three, five
c. Five, five
d. Five, three
14. The period of availment of a Registered Business Enterprise (RBE)
I.
Export enterprise: ITH of 4-7 years followed by SCIT
II.
Export enterprise: Regular Corporate Income Tax (RCIT) with enhanced deductions for
ten (10 years)
III.
Domestic Market Enterprise under the SIPP: ITH of 4-7 years followed by RCIT with
enhanced deductions for 5 years
a. I only
b. I and II
c. I and III
d. I, II and III
15. RBEs with incentives granted prior to the effectivity of the Act shall be subject to the following
rules, except
a. RBE with granted ITH are allowed to continue for the remaining period of the ITH
b. RBE with granted ITH and entitled to 5% Gross Income Tax (GIT) are allowed to avail of
the 5% GIT for a period of 10 years
c. RBE currently availing the 5% GIT is allowed to avail of the 5% GIT for a period of 10
years
d. None of the above
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AESCARTIN/TLOPEZ /JPAPA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile
: 0927 283 8234
Telephone
: (043) 723 8412
Gmail
: www.icarecpareview@gmail.com
16. Which of the following is not a fundamental principle of local government taxation?
a. It shall be uniform in each local government unit
b. It may prohibit or regulate trade.
c. It must be levied and collected only for public purposes
d. It must be based on the taxpayer’s ability to pay
17. The power to impose a tax, fee, or charge or to generate revenue under this Code shall be
exercised by the sanggunian of the local government unit concerned through ____.
a. An ordinance
b. A bill
c. A memorandum
d. An executive order
18. Taxing power of local government units shall not extend to the following taxes, except
a. Documentary stamp tax
b. Income tax on banks and other financial institutions
c. Taxes on business enterprises certified to by the Board of Investments
d. Excise taxes on articles enumerated under the National Internal Revenue Code.
19. What is the basis for the computation of local business tax?
a. Gross sales or receipts of the prior year
b. Gross sales or receipts of the current year
c. Net income of the current year
d. Net income of the prior year
20. The rates of taxes that the city may levy may exceed the maximum rates allowed for the
province or municipality by not more than _______ except the rates of professional and
amusement taxes.
a. 10%
b. 25%
c. 30%
d. 50%
21. Retiring businesses are taxed based on ______.
a. Gross sales or receipts of the prior year
b. Gross sales or receipts of the current year
c. Net income of the current year
d. Net income of the prior year
22. Which of the following is not exempt from community tax?
a. Diplomatic representatives
b. Transient visitors whose stay in the Philippines does not exceed 3 months
c. Consular representatives
d. Local government employees and officials
23. The civil remedies for the collection of local taxes, fees, or charges, and related surcharges and
interest resulting from delinquency shall be:
a. Administrative action thru distraint or levy;
b. Judicial action
c. Either (a) or (b)
d. Either (a) or (b) or both
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AESCARTIN/TLOPEZ /JPAPA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile
: 0927 283 8234
Telephone
: (043) 723 8412
Gmail
: www.icarecpareview@gmail.com
24. Which statement is correct?
I.
Local taxes, fees, or charges shall be assessed within three (3) years from the date they
became due.
II.
In case of fraud or intent to evade payment, the period shall be ten (10) years from
discovery.
III.
Local taxes, fees, or charges may be collected within five (5) years from the date of
assessment by administrative or judicial action.
a. I and II
b. I and III
c. II and III
d. I, II and III
25. Mr. A, an 18-year-old student earned P 5,000 from his internship where he rendered services for
half a month. How much is his community tax?
a. P 0
b. P 5.00
c. P 7.00
d. P 10.00
26. A Corporation, a non-resident foreign corporation, derived income amounting to P5,000,000
from the Philippines. How much is its community tax payable?
a. P 0
b. P 500
c. P 2,500
d. P 10,000
27. Which of the following is a fundamental principal of real property taxation?
a. Real property shall be classified for assessment purposes on the basis of its
intended use
b. Real property shall be appraised at its current and fair market value
c. The appraisal, assessment, levy and collection of real property tax may be
delegated to private persons
d. All of the above
28. It is the term used by the Local Government Code for the act or process of determining
the value of property as of a specified date for a specific purpose
a. Appraisal
b. Assessment
c. Reassessment
d. Valuation
29. It is the fair market value of the real property multiplied by the assessment level. It is synonymous
to taxable value
a. Depreciated value
b. Replacement or reproduction cost
c. Fair value
d. Assessment value
30. The following properties are exempt from real property taxes:
Real property actually, directly and exclusively used for hospitals, cultural, or scientific
I.
purposes,
Real property owned and used by local water districts, and government-owned or
II.
controlled corporations rendering essential public services in the supply and distribution
of water and/or generation and transmission of electric power
III.
Charitable institutions, churches, parsonages or convents appurtenant thereto,
mosques, non-profit or religious cemeteries and all lands, buildings, and improvements
actually, directly, and exclusively used for religious, charitable or educational purposes
IV.
All real property owned by duly registered cooperatives as provided for under R.A. No.
6938
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AESCARTIN/TLOPEZ /JPAPA
Commented [LT1]: Should be 5 years.
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
V.
a.
b.
c.
d.
Mobile
: 0927 283 8234
Telephone
: (043) 723 8412
Gmail
: www.icarecpareview@gmail.com
Machinery and equipment used for pollution control and environmental protection
I and II
II and III
III and IV
I, II, III and IV
31. A city or a municipality within the Metropolitan Manila Area may levy a real property tax at a rate
not exceeding
a. ½ of 1%
b. 1%
c. 1.5%
d. 2%
32. In addition to the basic real property tax, a province, city or municipality within the Metropolitan
Manila Area may levy an annual tax of ___ based on the assessed value of real property, the
proceeds of which shall accrue to the Special Education Fund (SEF), and an additional tax of ___
based on the assessed value of idle lands.
a. 1%, 2%
b. 2%, 1%
c. 1%, 5%
d. 2%, 5%
33. Which of the following may not be considered an ‘idle land’?
a. Lands which have become idle by reason of force majeure, civil disturbance, natural
calamity
b. Land actually used for grazing
c. Agricultural lands planted to permanent or perennial crops with at least fifty (50) trees
to a hectare
d. All of the above
34. Mr. A owns land in the province. The area of the parcel of land is 10 hectares and it is suitable
for agricultural use. However, only 3 hectares was utilized. The province may impose:
a. Basic real property tax only
b. Basic real property tax and an additional tax for the SEF
c. Tax on idle lands only
d. Basic real property tax, an additional tax for the SEF and tax on idle lands
35. When does real property tax accrue?
a. On the first day of January
b. On the last day of January
c. On the 20th day of January
d. On the 10th of January
36. Where the real property tax assessment is erroneous, the remedy of the property owner is:
a. To file a claim for refund in the Court of Tax Appeals if he has paid the tax, within thirty
(30) days from date of payment;
b. To file an appeal with the Provincial Board of Assessment Appeals within thirty (30) days
from receipt of the assessment;
c. To file an appeal with the Provincial Board of Assessment Appeals within sixty (60) days
from receipt of the assessment;
d. To file an appeal with the Provincial Board of Assessment Appeals within sixty (60) days
from receipt of the assessment and playing the assessed tax under protest.
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AESCARTIN/TLOPEZ /JPAPA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile
: 0927 283 8234
Telephone
: (043) 723 8412
Gmail
: www.icarecpareview@gmail.com
37. Which statement/s is/are correct?
I.
DST is paid by the person making, signing, issuing, accepting or transferring the
documents. However, whenever one party to the taxable documents enjoy exemption
from the tax, it is no longer subject to DST.
II.
The Tax Code provides that the DST return and the tax due shall be filed and paid within
10 days following the close of the month when the taxable document was signed,
issued, accepted and transferred.
a. True, True
b. True, False
c. False, False
d. False, True
38. Which of the following is exempt from DST?
a. Bank deposit accounts without a fixed term or maturity
b. Transfer of property pursuant to Section 40 (C) (2)
c. Sale, barter or exchange of shares of stock listed and traded through the local stock
exchange
d. All of the above
39. Failure to pay DST shall produce the following effects, except:
a. The contract cannot be notarized
b. The contract shall be invalidated
c. The contract shall be inadmissible in court
d. All of the above
40. Which is incorrect with respect to DST on original issue of shares of stock?
a. Par value stocks: P2.00 on every P200 or fractional part of the par value
b. No par value stocks: P2.00 on every P200 of the actual consideration
c. Stock dividends: Not subject to DST
d. None of the above
41. The DST on debt instruments
a. P0.75 on each P200 or fractional part of the issue price
b. P1.00 on each P200 or fractional part of the issue price
c. P1.50 on each P200 or fractional part of the issue price
d. P2.00 on each P200 or fractional part of the issue price
42. The DST on debt instruments shall be computed without regard to its term.
a. True
b. False
43. Which statement is incorrect with respect to DST on deeds of sale, conveyance and donation of
real property?
a. The DST shall be based on the contract price or the fair market value, whichever is
higher.
b. When one of the contracting parties is the Government, DST shall be based on actual
consideration.
c. A transfer of real property may be exempt from donor’s tax but not DST
d. The DST shall be P15.00 if the value or consideration does not exceed P1,000 and P15.00
for each additional P1,000 or fractional part thereof, in excess of P1,000
44. In general, double tax agreements (tax treaties) are applicable to
a. Value-added tax
b. Income tax
c. Documentary stamps tax
d. All of the above
45. Which is not an advantage of double tax agreements?
a. Prevents international double taxation
b. Prevents tax evasion
c. Promotes investments
d. None of the above
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AESCARTIN/TLOPEZ /JPAPA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile
: 0927 283 8234
Telephone
: (043) 723 8412
Gmail
: www.icarecpareview@gmail.com
46. It refers to a fixed place of business through which the business of an enterprise is wholly or
partially carried on.
a. Branch
b. Domicile
c. Permanent establishment
d. Temporary establishment
47. As stipulated in a double tax agreement, which of the following may be exempt from income tax
in one contracting state?
a. Business profits
b. Dividends
c. Interests
d. Royalties
48. First Statement- A taxpayer may already avail of the treaty exemption or lower treaty rate
provided a Request for Confirmation (RFC) of the propriety of the exemption or lower treaty
rate is lodged not later than the last day of the fourth month of the year following the year
when withholding were made
Second Statement – A taxpayer may apply the withholding tax prescribed in the Tax Code and
file a Tax Treaty Relief application (RFC), with simultaneous claim for refund, not later than the
last day of the fourth month of the year following the year when the withholding tax was paid.
a. True, True
b. True, False
c. False, False
d. False, True
49. Excise tax is imposed on the production, sale or consumption of a commodity in the Philippines.
It is imposed on the following, except:
a. Manufactured or produced in the Philippines of excisable goods
b. Importation into the Philippines of excisable goods
c. Sale of service, particularly invasive cosmetic surgery
d. Sale in the Philippines of excisable goods
50. Doctor Victor Beldrom performed emergency constructive cosmetic surgery to Andrew Nose
when the latter’s nose was obliterated when he fell, face first, from the stage while
singing/rapping, Bagong Mutha. Doctor Beldrom was paid Php750,000 for the aforesaid cosmetic
surgery. The Excise Tax Due is:
a. Php37,500
b. Php0
c. Php75,000
d. Php90,000
51. The following are allowed to register as business as a Barangay Micro Business Enterprise,
except
a. Corporation engaging in manufacturing hand made dolls
b. Individual (sole proprietor) operating a vulcanizing shop
c. Partnership engaged in selling cooked meals
d. Partnership engaged in exercise of profession, e.g., Accounting Firm
52. The following are the incentives for registration as a BMBE.
a. Exemption from income tax
b. Exemption from the coverage of the minimum wage law
c. Assistance in the technology transfer, production and management training and
marketing assistance
d. All of the above
That in all things, God will be glorified
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AESCARTIN/TLOPEZ /JPAPA