CHAPTER 2 QUIZ 2 BASED Flashcards
Who is considered a Marginal Income Earner?
an individual whose business does not realized gross sales exceeding 100,000 in any 12-month period
Who is classified as an individual with fixed place of abode in the Ph but is not engaged in any business or profession?
Resident Alien
What do you call a Filipino citizen who earns income both from the Philippines and abroad but maintains a permanent home in the Philippines?
Resident Citizen
An individual who is a foreigner earns income from sources within the Philippines and stays in the country for more than 180 days within a taxable year
Non-Resident Alien Engaged in Trade or Business
The tax rate applicable to a taxpayer earning solely from self employment or practice of profession with gross sale below 3 million at their option
8% income tax rate
The threshold for VAT registration in the Philippines
P3,000,000
T OR F
Income of a non-resident alien not engaged in trade or business is tax at a flat rate of 25%
T
T OR F
A non-resident citizens income from outside the Philippines is taxable in the Philippines
F
List four allowable deduction for youtubers as business expenses under the NIRC
- filming expenses
- computer equipments
- subscription and software licensing fees
- internet and communication expenses
- home office expenses
- office supplies
- business expenses
- depreciation expense
- bank charges and shipping fees
List down some examples of Fringe benefits
- Housing
- Expense Account
- Vehicle of any kind
- Household personnel
- Interest on loan at less than market rate
- Membership fees
- Expenses for foreign travel
- Holiday and vacation expenses
- Education Assistance
- Life or health insurance
Enumerate the three types of non resident alien taxpayers in the Philippines
Non-resident alien engaged in trade or business in the Philippines
Non-resident alien not engaged in trade or business in the Philippines
Non-resident alien employed by:
- Regional or area headquarters and regional operating headquarters
- Offshore banking unit
- Petroleum contractors and sub-contractors
Law that provides tax incentives for barangay micro business enterprises
R.A. 9178
The due date for the first installment payment of estimated tax
April 15
The entity responsible for collecting taxes in the Philippines
Bureau of Internal Revenue
The percentage of business tax applicable to non vat taxpayer like night club owners
18%
T OR F
A non-resident citizen who has stayed abroad for over 183 days is exempt from income tax in the Philippines on foreign income
T
T OR F
GCC can opt for the 8% income tax rate on his business income since his gross receipts do not exceed the VAT result
T
T OR F
GBG would be subjected to a maximum tax rate of 24% on her YouTube earnings if she does not inform Google LLC of her residency in the Philippines
T
T OR F
Mixed income earners can avail the 8% income tax rate for both compensation and business income
F
T OR F
Non-operating income should be included in the computation of tax liabilities for businesses
T
T OR F
The 250,000 deduction applies to both compensation income and income from business for mixed income earners
F
T OR F
A taxpayer earning compensation income and owning a business with gross receipts exceeding 3 million is subject to vat
T
T OR F
Social media influencers are exempt from business tax if their income is below 250,000
F
First installment due date
April 15
Barangay micro business enterprise
Businesses exempt from income tax on operation
Second installment due date
August 15
Third installment due date
November 15
Senior citizens
Entitled to 20% vat discount on specified goods and services
What is the tax treatment for a non-resident alien earning income from sources within the Philippines
Taxed only on income from sources within the Philippines
Which of the following is a characteristic of a resident citizen
Permanently resides in the Philippines
A non-resident citizen is defined as
A citizen residing abroad with the intention to stay permanently
Which of the following best describes as resident alien
An individual whose residence is within the Philippines but is not a citizen
Non resident aliens are taxed only on income derived from
Sources within the Philippines
