CHAPTER 3 Flashcards
TAXATION OF CORPORATION
Enumerate the 3 classifications of Income Taxpayer
- Corporations
- General Professional Partnership
- Estates & Trust
Those created or organized under and by virtue of Philippine laws
Domestic
Those organized in accordance with laws of their respective countries
Foreign
It is an artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence
Corporation
It allows any person, partnership, association or corporation, singly or jointly with others but not more than 15 in number, may organize a corporation for any lawful purpose(s).
Section 10 of the RCCP
It includes one-person corporations, partnerships, no matter how created or organized, joint-stock companies, joint accounts, associations, or insurance companies, but does not include general professional partnerships and a joint venture or consortium formed for the purpose of undertaking construction projects or engaging in petroleum, coal, geothermal and other energy operations pursuant to an operating or consortium agreement under a service contract with the Government
Corporation
It states that a joint venture or consortium formed for the purpose of undertaking construction projects not taxable as corporation under Sec. 22 of the NIRC of 1997
Section 3 of RR 10-2012
Formed for the purpose of undertaking construction projects pursuant to an operating or consortium agreement is not subjected to the regular corporate income tax
Joint venture or Consortium
They are separately subject to the regular corporate income tax under Section 27(A) of the Tax Code on their taxable income during each taxable year respectively derived by them from the Join Venture
Co-venturers
It means created or organized in the Philippines or under its laws
Domestic
It is a new type of corporation under the Revised Corporation Code of the Philippines (effective March 8, 2019).
One Person Corporation
It is a corporation with a single stockholder, who may be a natural person, a trust or an estate.
One Person Corporation
It may incorporate two or more OPCs.
One Person
It means a corporation which is not domestic.
Foreign
Applies to a foreign corporation engaged in trade or business within the Philippines.
Resident Foreign Corporation
Applies to a foreign corporation not engaged in trade or business within the Philippines.
Non-Resident Foreign Corporation
It must obtain a license and a certificate from the appropriate government agency before it can transact business in the Philippines.
Foreign corporation
It provides than it cannot maintain any action or proceeding before Philippine courts.
Section 133
States that “doing business” shall include “soliciting orders, service contracts, opening offices, whether called ‘liaison’ offices or branches
RA 7042 or Foreign Investment Act of 1991
Partnership formed by persons for the sole purpose of exercising their common profession, no part of the income of which is derived from engaging in any trade or business
General Professional Partnership
All corporations, agencies, or instrumentalities owned or controlled by the Government
Government-owned or Controlled Corporations (GOCCs), Agencies or Instrumentalities
Dividends received from non-resident foreign corporations
Foreign-sourced dividends
Enumerate the Sources of Income
- Domestic Corporations
- Foreign Corporations
A source of income which are taxable on income from sources within and without the Philippines
Domestic Corporations