Individual Taxpayers

Question 1

% Interest (in general) - RC

Answer 1

20%

Question 2

% Interest (Foreign Currency Deposit System) - RC

Answer 2

15%

Question 3

% Interest (long term deposits/investment) -RC

Answer 3

More than 5 years - Exempt
4 years to less than 5 years - 5%
3 years to less than 4 years - 12%
Less than 3 years - 20%

Question 4

% Royalties (in general) -RC

Answer 4

20%

Question 5

% Royalties on books, as well as other literary works

and musical compositions

Answer 5

10%

Question 6

% Winnings and prizes (in general) - RC

Answer 6

20%

Question 7

% Winnings and prizes (10k or less) - RC

Answer 7

Graduated Rates

Question 8

% PCSO & Lotto Winnings (more than 10k) - RC

Answer 8

20% FT

Question 9

%Dividends – RC

Answer 9

10% FT

Question 10

% Fringe benefits granted to Filipino employees occupying the
same position as those held by alien employees of regional or
area held by the alien employees of regional or area
headquarters of a multinational company

Answer 10

15%

Question 11

To be considered as NRC

Answer 11

OUTSIDE for more than or equal to 183 days

Question 12

To be considered as NRA (ETB)

Answer 12

INSIDE for more than 180 days

Question 13

To be considered as NRA (NETB)

Answer 13

INSIDE for less than or equal to 180 day

Question 14

A foreign firm or entity engaged in international
trade with affiliates or subsidiaries or branch
offices in the Asia-Pacific Region and other
foreign markets

Answer 14

Multinational Company

Question 15

A branch established in the 
Philippines by multinational 
companies and which 
headquarters do not earn or derive  
income   from  the Philippines  and 
which act as supervisory, 
communications and  coordinating 
center for their  affiliates,  
subsidiaries, or  branches in the  
Asia-Pacific Region and other 
foreign markets [

Answer 15

Regional or Area Headquarters

Question 16

A branch established in the Philippines by multinational
companies which are engaged in any of the following
services:
 General administrative and planning;
 Business planning and coordination;
 Sourcing and procurement of raw material
and components;
 Corporate finance advisory services;
 Marketing control and sales promotion
 Training and personnel management;
 Logistic services;
 Research and development services and
product development;
 Technical support and maintenance;
 Data processing and communication; and
 Business development

Answer 16

Regional Operating Headquarters

Question 17

A  branch, subsidiary or affiliate of a foreign 
banking corporation which is duly 
authorized by  the BSP to conduct 
banking transactions in  foreign
currency involving  the  receipt 
of  funds from external  sources 
and  the  utilization  of  such funds
as  provided  by  the  enacting  law

Answer 17

Offshore Banking Units

Question 18

T or F

Based on RR 11-2018, an MWE wiill not enjoy the privilege of being a MWE if he/she receives an income aside from salary, holiday pay, night differential pay, hazard pay, and overtime pay

Answer 18

F