CHAPTER 2- INCOME TAX FOR INDIVIDUALS Flashcards
Pedro, an OFW, returned in the Philippines for good on May 2023. He shall be classified for 2023 taxable year as:
January to April 2023-nonresident citizen
From May 2023 onwards-resident citizen
Ana, a resident citizen, left the Philippines on July 1, 2023 to reside permanently in U.S. together with her family. She shall be classified for 2023 taxable year as:
January to June 2023 - resident citizen
From July 2023 onwards - nonresident citizen
Determine the correct classification of the taxpayer: Allan is a natural bom Filipino citizen. His family migrated in U.S. fifteen (15) years ago. For personal reasons, he decided to return and reside permanently in the Philippines on March 1, 2023.
From Jan. to Feb. 2023: Allan is classified as NRC. From March 1, 2023 onwards: Allan is classified as RC.
Determine the correct classification of the taxpayer: G.I. Joe is an American information technology expert. He was signed by Doon Telecom, a local telecommunication company, from January to March of 2023 to improve its wireless services. Due to the anticipated entry of competitors from other countries, Doon Telecom decided to extend indefinitely the services of G.I. Joe.
He is a resident alien. An alien who comes to the Philippines for the purpose that requires extended stay for its accomplishment, so he makes his home temporarily in the Philippines, is a resident, regardless of his intention to return to his residence abroad.
Determine the correct classification of the taxpayer: Michael Malone, head coach of the Denver Nuggets in the NBA is in the Philippines for a month-long NBA promotional tour. He also expressed his intention to regularly visit the Philippines.
Michael Malone is classified as NRA-NETB
Determine the correct classification of the taxpayer: Michael Malone, head coach of the Denver Nuggets in the NBA is in the Philippines for a month-long NBA promotional tour. He also expressed his intention to regularly visit the Philippines. Assume that Michael Malone invested in shares of stocks of various domestic corporations during his recent stay in the Philippines.
Michael Malone is NRA-NETB. Passive income such as dividend income is not considered as income derived from trade or business.
Determine the correct classification of the taxpayer: Nicola Jokic “The Joker” is an NBA Champion and NBA Finals MVP. He is a resident citizen of Serbia. Assuming Nicola Jokic owns a restaurant in Malate, he should be classified as:
NRA-ETB. He is engaged in actual conduct of trade or business in the Philippines but is nonresident.
An instrument with a maturity period of ten (10) years was held by Juan (resident citizen) for two (2) years and was transferred to Smith (resident alien), who, in turn, held it for eight (8) years. What are the final withholding tax?
Juan 20% final tax
Smith exempt
An instrument with a maturity period of ten (10) years was held by Juan (nonresident citizen) for three (3) years and transferred it to Smith, a resident alien. Smith held it for two (2) years before subsequently transferring it to Pedro (resident citizen) who held it until the day of maturity or for a period of five (5) years. What are the final withholding tax?
Juan 12% final tax
Smith 20% final tax
Pedro Exempt
An instrument with a maturity period of ten (10) years was held by Smith (nonresident alien engage in trade or business) for three (3) years and transferred it to Juan, a resident citizen. Juan held it for two (2) years before subsequently transferring it to James (resident alien) who pre-terminated it after four (4) years.What are the final withholding tax?
Smith 12% final tax
Juan 20% final tax
James 5% final tax
Classify:
Manny, a Filipino businessman, went on a business trip abroad and stayed there most of the time during the year.
RC
Classify:
Kyla, a Filipino professional singer, held a series of concerts in various countries around the world during the current taxable year. She stayed abroad most of the time during the year.
RC
Classify:
Efren, a Filipino “cue” artist went to Canada during the taxable year to train and participate in the world cup of pool. He stayed there most of the time during the year
RC
Classify:
Mr. Song Joong Ki, a Korean and a resident of Seoul, Korea, stayed in the Philippines from June 10 to 20, 2021 to watch the 2021 FIBA Asia Cup in Clark, Pampanga. During his stay, he bought equity investments from Alpha and Delta Corporations (domestic corporations). He likewise invested in a mutual fund of Banko de Isla de Pilipinas, a local bank.
NRA-NETB
Classify:
Due to his expertise, Engr.. Pedro D. Magiba (a freelancer) was hired by a foreign petroleum contractor in Thailand to provide technical assistance for two months from February to March. He was hired again for the months of June-July and October-December of the same taxable year.
NRC
Classify:
On January 2021, Mr. Bald Nha, an American basketball coach was hired as a team consultant by one of the teams in the University Athletic Association of the Philippines (UAAP) for a period of not more than three (3) months. His coming to the Philippines was for a definite purpose. However, he was subsequently chosen to coach Gilas, the Philippine national basketball team and lead the country’s campaign for the FIBA Olympic Qualifying Tournament, the 2021 FIBA Asia Cup in August and the 2023 FIBA World Cup. The American mentor intends to leave the Philippines as soon as his job is finished.
RA
Tax type:
Interest from peso bank deposit, BDO, Makati
Final Withholding Tax
Tax type:
Interest from US dollar bank deposit, BPI-Manila
Final Withholding Tax
Tax type:
Interest from Money Market Placement, Philippines
Final Withholding Tax
Tax type:
Interest from foreign currency deposit Japan
Basic Tax
