Chapter 9 Flashcards
Are fringe benefits of managerial or supervisory employees compensation income?
No
PEZA meaning
Philippine Economi Zone authority
How much s the tax of PEZA registered enterprises?
5%
Which kind of interest income is included in gross income?
Those other than passive interest income subject to final tax
This is the opportunity cost of money
Imputed interest income
Is interest income earned by landowners pursuant to the Comprehensive Agrarian Reform law taxable?
No
Is imputed interest income taxable?
No
What are the special considerations on rent?
290
What kind of royalties are subject to RIT?
Active royalty income and royalties earned outside the Philippines
Which kind of dividends are taxable on RIT?
Foreigns sourced dividends
Are stock dividends exempt from tax? (GR and XPTN)
GR: Yes
XPTN: When stock dividends are subsequently redeemed such that it amounts to payment of cash dividend, the fair market value of the stock dividends is taxable
Are liquidating dividends include din gross income?
No they are not income
Generally, foreign sourced dividends received by domestic corporations are subject to RIT. When can they be exempted? (3)
293
Which annuities are taxable?
Those in excess of annuity payments over premium paid
Are GPPs taxable on income?
No. They are pass through entities meaning the parties are the ones to individually pay tax. Their share in net income is included in taxable income
Are recoveries of past deductions taxable?
Yes if they resulted in tax benefit to the taxpayer
What are the ways a taxpayer may benefit from a deduction?
299
If the cancellation of debt is due to
a. in consideration of service or goods
b. as an act of gratuity
c. as capital transaction
Is it taxable?
a. yes
b. no
c. treated as dividend income
