National Taxation

Question 1

National Internal Revenue Code
Tax Code of 1997

Answer 1

RA 8424

Question 2

Tax Reform for Acceleration and Inclusion (TRAIN) Law

Answer 2

RA 10963

Question 3

Corporate Recovery and Tax Incentives for Enterprises (CREATE) 2021

Answer 3

RA 11534

Question 4

Ease of Paying Taxes Act

Answer 4

RA 11976

Question 5

_______ is a pivotal reform aimed at boosting economic recovery and enhancing the country’s attractiveness to investors. Reduced Corporate Income Tax for 30% - 20% for small businesses and 25% for others

Answer 5

CREATE - Corporate Recovery and Tax Incentives for Enterprises
RA 11534

Question 6

______ amended the NIRC to modernize tax system. Revised VAT threshold for RE sales and leases

Answer 6

Tax Reform for Acceleration and Inclusion (TRAIN) Law
RA 10963

Question 7

____ is the foundational framwerokd for all national taxes

Answer 7

NIRC - National Internal Revenue Code
Tax Code of 1997
RA 8424

Question 8

Tax levied on person’s income
Graduated is ______% depending in taxable income
Or ____% flat rate on gross receipts

Answer 8

Income Tax
0-35%
8%

Question 9

Tax imposed on persons as per Sections 116-127 of NIRC.
Levied on gross receipts for business activities
3% per quarter

Answer 9

Percentage Tax

Question 10

Income Tax Form

Answer 10

1701Q (Quarterly IT for Self-employed and Professionals) May 15, Aug 15, Nov 15
1701 (Annual IT…) April 15 the ff year

Question 11

Percentage Tax Form and when is it due

Answer 11

2551Q
Due on Apr 25, July 25, Oct 25, Jan 25

Question 12

It is an indirect tax - meaning it is passed on to the buyer, transferee, or lessee of the goods and services.
It is a consumption-based tax imposed on the sale, barter, ….as well as importation of goods.
P3M annual gross sales

Answer 12

VAT
12%

Question 13

VAT Form and when due.

Answer 13

2550Q (Quarterly VAT Return)
April 25, July 25, Oct 25, Jan 25

25000M (monthly)

Question 14

VAT due on the SALE or LEASE … By any VAT registered person

Answer 14

Output Tax

Question 15

VAT due from or PAID by a VAT registered person

Answer 15

Input VAT

Question 16

VAT Payable

Answer 16

Output VAT - Input VAT

Question 17

VAT Formula

Amount is INCLUSIVE of VAT

Answer 17

VAT = (Price / 1.12) * 0.12

Question 18

VAT Formula

Amount is Exclusive of VAT

Answer 18

VAT = Price * 0.12

Question 19

Taxpayers may opt to deduct a fix 40% of gross sales or receipts

Answer 19

Optional Standard Deduction (OSD)

Question 20

Is a type of income tax withheld at source by the withholding agent. The withheld amount is a creditable tax, meaning it can be applied to the total income tax due of the payee at the end of the taxable year

Answer 20

Expanded Withholding Tax (EWT)

Question 21

EWT Form

Answer 21

BIR Form 2307
Certificate of Creditable Tax Withheld at Source
** Filed together with Income Tax quarterly and annually
**Deadline same with income tax deadlines

Question 22

BIR Form 0619E

Answer 22

Monthly Remittance Form for Creditable Income Taxes Withheld
**Due on the 10th of the ff month for monthly remittance
**c/o withholding agents like developer

Question 23

Tax on the privilege of transmitting the decedent’s estate to lawful heirs and beneficiaries at the time of death. Not a property tax but a tax on the transfer of property.

Answer 23

Estate Tax

Question 24

Estate Tax Form

Answer 24

BIR Form 1801
**Deadline : 1 year from the decedents death
**RDO where the decedent was domiciled at the time of death
***Installment payment allowed for 2 years

Question 25

Estate Tax allowable deductions

Answer 25

Family Home - 10M, in excess is subject to ET. If conjugal property only half can be deductible Standard Deduction - 5M

Question 26

Allowable estate tax deduction for non-resident aliens

Answer 26

P500,000

Question 27

RA 11956

Answer 27

Tax Amnesty ***Lapsed into law Aug 5,2023 *** Extended until June 14, 2025

Question 28

Is a tax imposed on the gratuitous transfer of property between living individuals

Answer 28

Donor's Tax

Question 29

Donor's Tax Form

Answer 29

BIR Form 1800 ***Deadline: 30 days after execution and acceptance of Deed of Donation *** RDO where the donor is domiciled ***6% on gifts exceeding P250,000

Question 30

____ as property used in the ordinary course of trade or business

Answer 30

Ordinary Assets DIVE - DST -Income Tax -VAT -EWT

Question 31

___ property held by the taxpayer, whether on not connected with the trade or business, but excludes ordinary assets

Answer 31

Capital Assets CD - CGT -DST

Question 32

CGT Rate

Answer 32

1.5% - 500K or less 3% - 500K but not more than 2M 5% - more than 2M 6%- not habitually engaged in RE biz

Question 33

Formula for DST Documentary Stamp Tax

Answer 33

P15 for every P1000

Question 34

VAT for residential lot

Answer 34

12% regardless of the value

Question 35

VAT rate for H&L and other dwellings

Answer 35

Y 2021-2023 : 3,199,200 Y 2024 : 3.6M

Question 36

BIR Forms and Deadline CGT

Answer 36

Form 1706 Within 30 days from the date of sale or transfer

Question 37

BIR Forms and Deadline DST Documentary Stamp Tax

Answer 37

BIR Form 2000 Within 5 days after the close of the month the sale was made

Question 38

DST applies to wide range of documents, including but not limited to

Answer 38

Loan agreements or promissory notes Deeds of Sale or conveyances of RP Lease agreements Insurance policies Power of attorney, proxies or trust agreements

Question 39

DST Form

Answer 39

Form 2000 for regular periodic filing Form 200-OT for one-time transactions, such as sale of RP

Question 40

DST for Power of Attorney

Answer 40

P10 each document / per Power of Attorney

Question 41

DST for Mortgage or Deed of Trust

Answer 41

First P5000, P40 then P20 on each P5000 or fraction thereof

Question 42

DST on Leases

Answer 42

First P2000, P6 then for every P1000 or fraction thereof P2

Question 43

DST on Deed of Sale, Deed of Donations

Answer 43

First P1000, P15. For add't P1000 or fraction thereof P15