PREFERENTIAL TAXATION QUIZZER
Senior Citizens and PWDs:
1. Statement 1: Alcoholic beverages served in buckets/cases/bulk are not subject to
the 20% discount.
Statement 2: The 15% final withholding tax on interest income from any currency
bank deposits.
a. Statement 1 is true
b. Statement 2 is true
c. Both statements are true
d. Both statements are false
2. Statement 1: Toll fees are subject to the 20% discount.
Statement 2: Senior citizens and Persons with disabilities are exempt from VAT
on all of their purchases.
a. Statement 1 is false
b. Statement 2 is false
c. Both statements are true
d. Both statements are false
3. Statement 1: The 20% discount and VAT exemption shall also apply to purchases
of goods and services made by a senior citizen through credit card payments.
Statement 2: Senior citizens and Persons with disabilities are entitled to 20%
discount on certain purchases.
a. Statement 1 is true
b. Statement 2 is true
c. Both statements are true
d. Both statements are false
4. Statement 1: Private entities that will employ senior citizens as employees shall
be entitled to an additional deduction from their gross income, equivalent to 15%
Statement 2: Private entities that will employ disabled persons who meet the
required skills or qualifications, either as regular employee, apprentice or learner,
shall be entitled to an additional deduction from their gross income equivalent to
25% of the total amount paid as salaries and wages to disabled persons
a. Statement 1 is false
b. Statement 2 is false
c. Both statements are true
d. Both statements are false
5. Statement 1: The input tax attributable to the vat exempt sale is considered as
cost or an expense account by business establishments and shall not be allowed
as input tax credit.
Statement 2: They are entitled to a 5% discount on their purchase of primary and
basic commodities.
a. Statement 1 is true
b. Statement 2 is true
c. Both statements are true
d. Both statements are false
BMBEs:
6. Complete the statement: In availing incentives, once the Certificate/s of
_________ is/are secured, the applicant must submit the same to the BIR and
apply for Income Tax Exemption.
`
a. Permit
b. Authority
c. Operation
d. All of the above
7. I. A BMBE is defined as any business enterprise engaged in production,
processing, or manufacturing of products, including agro-processing, as well as
trade as trading and services, with assets not exceeding 3 million.
II. Assets arising from loans are excluded in the calculation of aggregate assets,
however the land on which the plant, property, and equipment is included.
a. Only Statement I is true.
b. Only Statement II is true.
c. Both statements are true.
d. Neither of the statements are true.
8. The following are institutions that contribute to the technological advancements
of BMBEs except:
a. Cooperative Development Authority (CDA)
b. Privatization and Management Office (PMO)
c. Technology and Livelihood Resource Center (TLRC)
d. Technical Education and Skills Development Authority (TESDA)
9. I. Operations in relation to the BMBEs may not be confined within the territorial
jurisdiction of the municipality or LGU in which its principal place of business is
situated.
II. A business transaction operating with the influence of large-scale industries
can still be classified as a BMBE.
a. Only Statement I is true.
b. Only Statement II is true.
c. Both statements are true.
d. Neither of the statements are true.
10. I. BMBEs are not exempt from business tax as stated in the law.
II. Cessation or suspension of BMBE operations for one year revokes its tax
exemptions.
a. Only Statement I is true.
b. Only Statement II is true.
c. Both statements are true.
d. Neither of the statements are true.
PEZA:
11. Are selected areas that has the potential to be developed into agro-industrial,
industrial tourist, commercial, banking investment, and financial centers.
a. Ecosystem
b. Ecozing
c. Ecozones
d. Ecotones
12. Refers to a tract of land subdivided and developed according to a comprehensive
plan under a unified continuous management and with provisions for basic
infrastructure and utilities, with or without pre-built standard factory buildings and
community facilities for the use of the community of industries.
a. Free Trade Zones
b. Industrial Estates
c. Facilities Enterprise
d. Tourism Enterprise
13. It is Philippine government agency tasked to promote investment, extend
assistance, register, grant incentives and facilitate the business operations of
investors in exportation
a. PEZA
b. BOI
c. Commissioner of Immigration and Deportation
d. DTI
14. PEZA issued working visas are renewable every ____.
a. Quarter
b. six months
c. two years
d. five years
15. When was the Republic Act (RA) No. 7916 (as amended by RA No. 8748), or
the Special Economic Zone Act of 1995 approved?
a. February 25, 1999
b. February 22, 1995
c. February 24, 1995
d. February 29, 1999
BOI:
16. Below are the fiscal incentives of a BOI registered company, except:
a. Tax Credits
b. Income Tax Holiday
c. Unrestricted use of consigned equipment
d. Additional deduction from taxable gross income
17. The primary agency tasked by the government to promote investments in the
Philippines.
a. PEZA
b. BOI
c. SEC
d. IPA
18. I. PEZA requires all business transactions to be located in the corresponding
PEZA ecozones.
II. BOI also places restrictions on business locations.
a. Only Statement I is true.
b. Only Statement II is true.
c. Both statements are true.
d. Neither of the statements are true.
19. Income Tax Holiday (ITH) for BOI registered enterprises presupposes that it shall
be exempt from the payment of income taxes reckoned from the scheduled start
of commercial operations until the period given by the BOI has lapsed. Which of
the following is correct?
I. Six (6) years for new projects with pioneer status
II. Four (4) years for new projects with non-pioneer status
III. Three (3) years for expansion projects
a. I and II only
b. II and III only
c. I and III only
d. I. II, and III
20. Which of the following is/are a non-fiscal incentive(s) granted to BOI registered
enterprises?
I. Employment of foreign nationals
II. Simplification of customs procedure
III. Use of consigned equipment and multiple entry visa
a. I only
b. I and II only
c. II and III only
d. I, II, and III
Tax Incentives:
21. A tax incentive specified in the amended Tax Code's new title, known as the
CREATE Act which entails a temporary halt on paying national income taxes.
a. Customs Deputy Exemption
b. Income Tax Holiday
c. Enhanced Deduction
d. None of the Above
22. How many percent can manufacturing businesses can deduct of their reinvested
profits from their taxable income for five years if they invest in projects on the
strategic investment priority plan?
a. 50%
b. 100%
c. 20%
d. 30%
23. Income from unregistered projects/activities are taxable. The strategic investment
priority plan is valid for __ years and reviewed every __ years unless a
supervening event occurs.
a. 1;5
b. 4;2
c. 2;4
d. 3;3
24. How many years is the maximum amount of time that the President may provide
incentives to its recipients?
a. 20 years
b. 30 years
c. 40 years
d. 50 years
25. Statement 1: The importation of COVID-19 vaccines by BE shall be exempt from
import duties, taxes and other fees, subject to the approval or licenses issued by
the Department of Health (DOH) or the Food and Drug Administration (FDA).
Statement 2: All registered businesses must pay regular tax rates after receiving
incentives for a registered project or activity.
a. Both statements are true
b. Both statements are false
c. Only statement 1 is true
d. Only statement 2 is false
DOUBLE TAXATION AGREEMENT:
26. Which statement is correct?
a. Double taxation is the multiple imposition of tax burden on the same object or
subject.
b. Direct Double Taxation is prohibited
c. Indirect double taxation is not prohibited.
d. All of the above
27. Residence rule provides that income is to be taxed in the country:
a. Where the recipient of income is a resident
b. Where it originates
c. Both A and B
d. None of the above
28. Which of the following methods used to eliminate or mitigate the effect of indirect
double taxation?
a. Tax exemption (i.e. based on treaties)
b. Tax Credit (i.e. deductible from tax due)
c. Deduction from the tax base
d. All of the above
29. In order to claim DTAA relief, non-resident is required to furnish
a. Tax Residency Certificate
b. Form 10F
c. PAN
d. Both A and B
30. When was the fifth (5th) published update of the OECD Model Tax Convention?
a. 2002
b. 2001
c. 2000
d. 1999