Module 4

Question 1

THE 2 DIFFERENT TYPES OF TAXPAYERS

Answer 1

Individuals and Corporation

Question 2

in common law, is the net worth of a person at any
point in time alive or dead. It is the sum of a person’s assets –
legal rights, interests, and entitlements to property of any kind
– less all liabilities at that time. The issue is of special legal
significance on a question

Answer 2

Estate

Question 3

is a three-party fiduciary relationship in which the first
party, it transfers (“settles”) a property
(often but not necessarily a sum of money) upon the second
party for the benefit of the third party, the beneficiary

Answer 3

Trust

Question 4

4 Classification of Individuals

Answer 4

• Resident Citizen
• Non Resident Citizen
• Resident Alien
• Non Resident Alien
  a. ETB
  b. NETB

Question 5

A Filipino citizen residing in the Philippines.

Answer 5

Resident Citizen

Question 6

A Filipino citizen residing in the Philippines.

Answer 6

Resident Citizen

Question 7

A Filipino citizen residing abroad.

Answer 7

Non-resident Citizen

Question 8

a person who does not reside in the Philippines and not a citizen.

Answer 8

Non-resident Alien

Question 9

a person who resides in the Philippines but is not a citizen.
Thereof, the intention is material for the determination.

Answer 9

Resident Alien

Question 10

An alien who stays in the Philippines for
more than ______ is considered a resident.

Answer 10

1 year

Question 11

This individual who stays in the Philippines for
more than 1 year is considered a resident.

Answer 11

Resident Alien

Question 12

Filipinos living abroad but without intention of residing
there permanently

Answer 12

Citizens of the Philippines

Question 13

Residents of the Philippines [Secs. 23 (A) and 24 (A)]

Answer 13

Citizens of the Philippines

Question 14

Not Residents of the Philippines [Secs. 23 (B) and 24 (A)] - One
has intention to reside permanently abroad

Answer 14

Citizens of the Philippines

Question 15

engaged in trade and business in the
Philippines.

Answer 15

Non-resident aliens

Question 16

engaged in trade or business in the
Philippines.

Answer 16

Non- resident aliens

Question 17

employed by multinational companies, offshore banking
units, and petroleum contractors and subcontractors.

Answer 17

Aliens

Question 18

employed by multinational companies, offshore banking
units, and petroleum contractors and subcontractors.

Answer 18

Aliens

Question 19

Stays for more than 180 days during the taxable
year.

Answer 19

Non-resident Alien – ETB

Question 20

Stays 180 days at most during the taxable year.

Answer 20

Non-resident Alien – NETB

Question 21

3 Classification lf Corporations

Answer 21

Domestic Corporations
Foreign Corporations
One Person Corporation

Question 22

A corporation created and organized under the law of the
Philippines;

Answer 22

Domestic Corporation

Question 23

2 Types of Domestic Corporation

Answer 23

Stock and Non Stock Corporation

Question 24

are organized for profit to be enjoyed by stockholders.

Answer 24

Stock Corporation

Question 25

are organized for purposes other than profit.

Answer 25

Non Stock Corporation

Question 26

may be formed or organized for charitable, religious or
educational, professional, cultural, fraternal, literary, scientific, social, civic
service, or similar purposes, like trade, industry, agricultural and like chambers,
or any combination thereof.

Answer 26

Non Stock Corporation