KMA - CGGIRDDAPPP

Question 1

🟢 SITUS INCOME 🟢

Let’s say for example, call center agent, ang client nimu foreigners. You are paid in dollars but since diri ka sa Pilipinas, work from home ka nagrender sa service nimu

what is the situs of income?

Answer 1

Here, you are supposed to pay income tax on the amount that you receive from your foreign clients to the Philippine government because the situs is here.

it is irrelevant who is the one who paid or the contract, what is relevant is where the SERVICE is render

Question 2

where is the situs of income for a sale of personal property

Answer 2

mobilia sequuntur the law that governs the movable is the person’s domicile

Question 3

where is the situs of REAL property

Answer 3

Lex rei sitae, where the property is situated, that is the law that governs it

Question 4

in what instances is the situs of income irrelevant?

[b] in what instances DOES it matter?

Answer 4

for RC & DC because they are taxed within & without of the philippines

[b]
NRC or FC

Question 5

🟢INTEREST INCOME 🟢

Mr. X is a resident citizen, nagpautang kay Mr. Y, US citizen. Out of that utang, nakaearn si Mr. X ug income.

[a] Taxable ba in the Philippines?

b. since Y is US, and interest income is the residence of the D/borrower, when does that apply

Answer 5

A
- yes, simply because X is a RC therefore taxable within & without

B
- basing residence applies when Creditor is a NRC

Question 6

Sister companies or business affiliates. Kana btaw si Foreign Corpo has a subsidiary in Philippines

scenario: FC (extended a loan) to the Subsidiary sa Pilipinas.

a. Asa ang situs in that case

There is income interest. Subsidiary then pays the loan to the FC parent

b. what is the tax to be applied

Answer 6

a subsidiary in Phil. is still a DC and thus the situs is in the Phil

[b]
- withholding tax of 25% because the situs of income is the Phil. & Debtor is a resident in Phil
(apply those when it is NRC or FC)

Question 7

🟢 RENT INCOME 🟢