OTHER PERCENTAGE TAX (OPT)

Question 1

1. Which of the following is subject to 1% (3% under TRAIN) percentage tax?
   a. Establishments whose annual gross sales or receipts exceed P3,000,000 and who are VAT
   registered
   b. Establishments whose annual gross sales or receipts do not exceed P3,000,000 and who
   are not VAT registered
   c. Businesses whose annual gross sales or receipts exceed P3,000,000 and who are not VAT
   registered
   d. VAT registered establishments whose annual gross receipts do not exceed P3,000,000

Answer 1

B

Question 2

2. Statement I: Other percentage taxes (OPT) are indirect taxes that can be passed on by person
   required to pay to another person who shall bear the burden of paying the tax.
   Statement II: Persons or transactions which are subject to OPT may still be subject to income
   tax.
   Statement III: Persons and transactions that are subject to OPT are no longer subject to VAT
   and excise tax.
   Statement IV: All VAT-exempt taxpayers shall be subject to OPT.
   a. Only one (1) of the above statements is true
   b. Two (2) of the above statements are true
   c. Three (3) of the above statements are true
   d. All of the above statements are true

Answer 2

B

Question 3

3. Which of the following entities are subject to Other Percentage Tax (OPT)?
   I. Philippine Airlines (PAL)
   II. Batangas II Electric Cooperative
   III. Soriano Nightclub
   IV. Bank of the Philippine Islands (BPI)
   a. I and II
   c. III and IV
   b. II and III
   d. II and IV

Answer 3

C

Question 4

4. Which of the following is not considered as a percentage tax?
   a. 15% tax on shares not traded through the local stock exchange
   b. 10% overseas communications tax
   c. 3% tax on common carriers and keepers of garage
   d. 6/10 of 1% stock transaction tax on shares traded through the local stock exchange

Answer 4

A

Question 5

5. Statement I: A radio broadcasting company whose gross annual receipts do not exceed
   P10,000,000 shall not be subject to VAT even if it decides to be subject to VAT.
   Statement II: A franchise on gas and water utilities whose gross annual receipts exceed
   P10,000,000 shall automatically be subject to VAT.
   Statement III: Radio and/or television broadcasting whose gross receipts in the preceding year
   did not exceed P10,000,000 shall have an option to be registered as VAT taxpayer.
   a. Only one (1) of the above statements is true
   b. Two (2) of the above statements are true
   c. Three (3) of the above statements are true
   d. All of the above statements are true

Answer 5

A

Question 6

6. Which of the following is subject to percentage tax?
   a. Telephone bill on a call by a daughter in the Philippines to her father in the Japan
   b. Telephone call by a brother in Korea to his friend in Cebu
   c. Monthly telephone bill from Globe
   d. Mobile call by a son from Quezon City to his mother in Baguio City

Answer 6

A

Question 7

7. Statement I: A non-VAT registered transportation contractor engaged in the transport of
   passengers, goods and cargoes is liable to 1% on VAT-exempt persons on gross receipts from
   transport of goods and cargoes and 3% common carrier’s tax on gross receipts from transport of
   passengers.
   Statement II: A VAT registered transportation contractor engaged in the transport of passengers,
   goods and cargoes is liable to 12% VAT on gross receipts from transport of goods and cargoes and
   3% common carrier’s tax on gross receipt from transport of passengers.
   Statement III: A non-VAT registered domestic carrier by land engaged in the transport of goods,
   whose annual gross receipts do not exceed P3,000,000 is liable to 1% OPT under Section 116.
   Statement IV: A non-VAT registered domestic carrier by land engaged in the transport of goods,
   whose annual gross receipts exceed P3,000,000 is liable to 12% VAT.
   a. Only one (1) of the above statements is true
   b. Two (2) of the above statements are true
   c. Three (3) of the above statements are true
   d. All of the above statements are true

Answer 7

D

Question 8

8. Statement I: A non-VAT registered domestic carrier by sea engaged in the transport of passenger,
   goods and cargoes, whose annual gross receipts do not exceed P3,000,000 is liable to 1% OPT
   under Section 116.
   Statement II: A non-VAT registered domestic carrier by sea engaged in the transport of passenger,
   goods and cargoes, whose annual gross receipts exceed P3,000,000 is liable to 12% VAT.
   Statement III: A non-VAT registered domestic carrier by land engaged in the transport of
   passengers, whose annual gross receipts do not exceed P3,000,000 is liable to 3% common
   carrier’s tax under Section 117.
   Statement IV: A non-VAT registered domestic carrier by land engaged in the transport of
   passengers, whose annual gross receipts do not exceed P3,000,000 is liable to 3% common
   carrier’s tax under Section 117.
   a. Only one (1) of the above statements is true
   b. Two (2) of the above statements are true
   c. Three (3) of the above statements are true
   d. All of the above statements are true

Answer 8

D

Question 9

9. An international air carrier doing business in the Philippines shall be subject to
   a. 3% percentage tax on gross receipts in the Philippines only
   b. 2 ½% income tax on Gross Philippine billings only
   c. Both the 2 ½% income tax on Gross Philippine Billings (GPB) and 3% percentage tax on
   gross receipts in the Philippines
   d. Both the 2 ½% income tax on Gross Philippine billings and VAT on gross receipts in the
   Philippines

Answer 9

C

Question 10

10. Statement I: Under RMC 70-2015, transport network vehicle services (TNVS), such as but not limited to the like of GRAB and its Partners and similar arrangements, which are holders of a valid and current Certificate of Public Convenience for the transport of passengers by land, shall be
    subject to 3% common carriers tax under Sec. 117.
    Statement II: The 3% common carrier’s tax is based on the actual quarterly gross receipts or minimum quarterly receipt whichever is lower.
    Statement III: Domestic common carries are subject to 0% on its flight originating from abroad to Philippines.
    Statement IV: Resident international carriers are subject to 0% VAT on its gross Philippine billings on flight originating from the Philippines to a foreign destination.
    a. Only one (1) of the above statements is true
    b. Two (2) of the above statements are true
    c. Three (3) of the above statements are true
    d. All of the above statements are true

Answer 10

A

Question 11

11. One of the following is subject to common carrier’s tax
    a. Owners of banca
    b. Owners of animal-drawn two wheeled vehicles
    c. Common carriers by land for transport of goods or cargoes
    d. Common carriers by land for transport of passengers

Answer 11

D

Question 12

12. Statement I: Banks are subject to VAT on its interest income, commissions, and discounts from
    lending activities and financial leasing.
    Statement II: Financing companies, pawnshops and duly registered credit cooperatives are subject
    to other percentage taxes.
    Statement III: Pawnshops and money changers are exempt from 12% VAT and OPT.
    a. Only one (1) of the above statements is true
    b. Two (2) of the above statements are true
    c. Three (3) of the above statements are true
    d. None of the above statements are true

Answer 12

D

Question 13

13. Statement I: A person engaged in non-life insurance business is subject to VAT.
    Statement II: The tax on life insurance premiums is based upon the total premiums collected
    whether such premiums are paid in money, notes, credits, or any substitute for money.
    Statement III: The tax on agents of foreign insurance companies is 4% based upon the total
    premiums collected.
    Statement IV: All insurance premium collected by life insurance company is subject to 2% gross
    receipts.
    Statement V: A life insurance premium refunded within six(6) months is not subject to a 2%
    percentage tax.
    a. Only one (1) of the above statements is true
    b. Two (2) of the above statements are true
    c. Three (3) of the above statements are true
    d. All of the above statements are true

Answer 13

D

Question 14

14. Who shall be liable to the amusement taxes under Section 125?
    a. Patrons of amusement places
    b. Lessors of amusement places
    c. Proprietor, lessees, or operator of amusement places
    d. None of the choices

Answer 14

C

Question 15

15. Statement I: The 10% tax on winnings is based on actual amount paid to the winner.
    Statement II: The rate of tax on winnings in case of double, forecast, quinella and trifecta shall be
    four percent (4%).
    Statement III: All boxing exhibitions held in the Philippines shall be subject to amusement tax.
    Statement IV: Gross receipts from amusement tax shall include income from television, radio and
    motion picture rights.
    Statement V: Gross receipts from amusement tax shall include income from sale of food and
    refreshments within and outside the amusement place.
    a. Only one (1) of the above statements is true
    b. Two (2) of the above statements are true
    c. Three (3) of the above statements are true
    d. All of the above statements are true

Answer 15

C

Question 16

16. One of the following is not subject to amusement tax on gross receipts
    a. Disco houses
    c. Professional basketball
    b. Cockpits
    d. Bowling alleys

Answer 16

D

Question 17

17. Boxing exhibitions shall be exempt from amusement tax when the following conditions are
    present:
    a. Involves World or Oriental championships in any division
    b. One of the contenders is a citizen of the Philippines
    c. Promoted by citizens of the Philippines or by a corporation or association at least 60% of
    the capital is owned by Filipino citizens
    d. All of the conditions above must be met

Answer 17

D

Question 18

18. Statement I: Primary offering of shares by the issuing corporation during IPO shall be subject to
    percentage on IPO of 4%, 2%, 1% based on gross selling price or gross value in money.
    Statement II: Secondary offering of stock held as investment when sold during IPO period shall be
    subject to percentage on IPO of 4%, 2%, 1% based on gross selling price or gross value in money.
    Statement III: Follow on, follow-through issuance of shares by the issuing corporation after IPO
    shall not be subject to business tax but subject to documentary stamp tax (DST).
    Statement IV: Shares of stock held as investment when sold through the local stock exchange shall
    be subject to percentage tax of 6/10 of 1% based on gross selling price or gross value in money.
    Statement V: Shares of stock held as investment when sold directly to a buyer shall be subject to
    capital gains tax of 15% of capital gain.
    a. Only one (1) of the above statements is true
    b. Two (2) of the above statements are true
    c. Three (3) of the above statements are true
    d. All of the above statements are true

Answer 18

D

Question 19

19. Statement I: Sale by a stock dealer of shares of stocks through the local stock exchange is subject
    to the stock transaction tax.
    Statement II: Sale by a stock dealer of shares of stocks directly to a buyer is subject to the capital
    gains tax.
    Statement III: The corporate issuer is the taxpayer as far as the IPO in the local stock exchange of
    closely held corporation is concerned .
    a. Only one (1) of the above statements is true
    b. Two (2) of the above statements are true
    c. Three (3) of the above statements are true
    d. All of the above statements are true

Answer 19

A