CIT Flashcards
T OR F Generally, non-resident foreign corporations are subject to 25% final tax on Philippine gross income
TRUE
Aside from the regular income tax of 25%, what other tax(es) may be imposed on corporations under Philippine income tax laws
a. Minimum Corporate Income Tax
b. Final tax
c. Capital gains tax
d. All of the above
D
T OR F: The term “corporation” includes profit-oriented and non-profit institutions such as charitable institutions, cooperatives, government agencies and instrumentalities, associations, leagues, civic or religious and other organizations.
T
T OR F: Excess MCIT can be used only as a tax credit against RCIT tax due in any of the four (4) subsequent years.
F (only three)
It is a corporation that is organized in accordance with Philippine laws.
a. Resident foreign corporation
b. Domestic corporation
c. Non-resident foreign corporation
d. None of the above
B
A corporate taxpayer with fiscal year ending May 31, 2023 must file its annual income tax return not later than
a. August 15, 2023
b. September 15, 2023
c. October 15, 2023
d. All of the above
B (15th day after 4 months)
T OR F: foreign corporation that transacts business with residents through a resident branch is taxable on such transactions as a non-resident foreign corporation through its branch.
F
T OR F: A lower 20% proportional tax on taxable income is imposed on domestic and foreign micro-, small-, and medium-sized enterprises (MSMEs) with not more than P100 Million assets, excluding land, and not more than P5 Million taxable income
F
Which of the following special non-resident foreign corporations is subject to 4.5% final tax?
a. Non-resident owner or lessor of aircraft, machineries, and other equipment.
b. Non-resident lessor of vessels, chartered by Philippine nationals
c. Non-resident cinematographic film owner, lessor or distributor
d. None of the above
B
T OR F: Income tax exemption relates only to income from related activities of the exempt corporations.
T
The branch profit remittance tax is a final tax which is required to be withheld by the head office abroad.
F
Which of the following is taxable based on income from all sources, within and without.
a. Domestic corporations
b. Resident foreign corporations
c. Non-resident foreign corporations
d. All of the above
A
The available accounting period for corporate taxpayers is/are:
a. Calendar year period
b. Fiscal year period
c. Both a and b
d. None of the above
C
The following are treated as corporations except:
a. Joint-stock companies
b. Associations
c. General Professional Partnerships
d. None of the above
C
T OR F: The Minimum Corporate Income Tax (MCIT) is applicable to every corporation taxable to the regular corporate income tax. Hence it can be applied to domestic and resident foreign corporations.
F
