QUIZ 5

Question 1

26. A citizen of the Philippines who works and derives income from abroad and whose employment thereat requires him to be physically present abroad most of the time during the taxable year.

Overseas contract worker

Resident Citizen

Resident Alien

Nonresident Citizen

Non-resident Alien

Answer 1

Nonresident Citizen

Question 2

27. Which of the following does not describe resident alien?

• An alien an individual who is not a citizen of the Philippines and whose residence is not within the Philippines.
• A person who comes to the Philippines for a definite purpose which in its nature may be promptly accomplished is a transient.
• An alien, who comes to the Philippines for a definite purpose, which, by its nature, would require an extended stay making his home temporarily in the Philippines
• An alien actually present in the Philippines who is NOT a mere transient or sojourner

Answer 2

• An alien an individual who is not a citizen of the Philippines and whose residence is not within the Philippines.

Question 3

28. It is an individual who is not a citizen of the Philippines but whose residence is within the Philippines.

• Resident Alien
• Non-resident Alien
• Resident Citizen
• Nonresident Citizen

Answer 3

• Resident Alien

Question 4

29. A nonresident alien is deemed engaged in trade or business in the Philippines if he/she has stayed in the Philippines for an aggregate period of more than ______ during any calendar year.

• 180 days
• 120 days
• 140 days
• 160 days

Answer 4

• 180 days

Question 5

30. It refers to Filipino citizen employed in foreign countries, commonly referred to as Overseas Filipino Workers (OFW), who are physically present in a foreign country as a consequence of their employment thereat.

• Overseas contract worker
• Nonresident Citizen
• Non-resident Alien
• Resident Alien
• Resident Citizen

Answer 5

• Overseas contract worker

Question 6

31. Which of the following is a resident citizen?

– A citizen of the Philippines who works and derives income from abroad and whose employment thereat requires him to be physically present abroad most of the time during the taxable year

• A citizen of the Philippines who leaves the Philippines during the taxable year to reside abroad, either as an immigrant or for employment on a permanent basis
• A citizen of the Philippines who establishes to the satisfaction of the Commissioner of the fact of his physical presence abroad with a definite intention to reside therein.
• A citizen of the Philippines who has a permanent home or place of abode in the Philippines to which he/she intends to return whenever he/she is absent for business or pleasure.

Answer 6

• A citizen of the Philippines who has a permanent home or place of abode in the Philippines to which he/she intends to return whenever he/she is absent for business or pleasure.

Question 7

32. Which of the following does not describe final withholding tax?

• It is constituted as full and final payment of the income tax liability
• The income subject to this tax is no longer subject to basic income tax.
• It cannot be credited or deducted from the basic income tax due to the BIR.\
• It is the payee (income earner) who has the responsibility to file the return and pay the applicable tax.

Answer 7

• It is the payee (income earner) who has the responsibility to file the return and pay the applicable tax.

Question 8

33. All income received by this person is subject to 25% final withholding tax with certain exceptions.

– Non-resident alien engaged in
trade or business

• Resident Alien
• Resident Citizen
• Non-resident alien not engaged in
  trade or business

Answer 8

• Non-resident alien not engaged in
  trade or business

Question 9

34. Income which cannot be definitely attributed to or identified as income exclusively earned or realization by either of the spouses, the same shall be equally divided between the spouses for purposes of determining their taxable income.True
    False

Answer 9

True

Question 10

35. The liability for the payment of the final withholding tax is primarily on the payee as the withholding agent.True
    False

Answer 10

False

Question 11

36. Income subject to basic tax is reflected in the income tax return of the taxpayer.True
    False

Answer 11

True

Question 12

37. Nonresident alien engaged in trade or business in the Philippines is taxed similarly as a resident citizen on incomes from sources within the Philippines.

    True
    False

Answer 12

True

Question 13

38. Married individuals (i.e., husband and wife) are required by law to file a consolidated income tax return, but they shall compute separately their individual income tax.True
    False

Answer 13

True

Question 14

39. Non-resident citizens and aliens, whether or not resident in the Philippines, are taxed onlyTrue
    False

Answer 14

True

Question 15

40. Minimum Wage Earners are exempt from income tax on their business income.True
    False

Answer 15

False

Question 16

41. Minimum Wage Earners are not exempt from income tax on their minimum wage.True
    False

Answer 16

False

**Except

Question 17

42. The Philippines taxes its resident citizens on their worldwide income.

• True
  False

Answer 17

True

Question 18

43. The salaries and wages of overseas contract worker are paid by an employer abroad and is not borne by any entity or person in the Philippines.True
    False

Answer 18

True

Question 19

44. Business expenses can be claimed by purely compensation income earner.

*
True
False

Answer 19

False

cannot be claimed by individuals who earn purely compensation income

Question 20

45. Statutory minimum wage earners are exempted from income tax, and the employer shall not withhold tax on compensation.

*
True
False

Answer 20

True

Question 21

46. An alien who has acquired residence in the Philippines retains his status as a resident until he abandons the same and actually depart from the Philippines.

.*
True
False

Answer 21

True

Question 22

47. The income subject to final withholding tax is no longer subject to basic income tax.True
    False

Answer 22

False

Remove no**

Question 23

48. NET INCOME includes all income not subject to final withholding tax and not considered exempt under the law.

• True
  False

Answer 23

False

Remove not*

Question 24

49. It is the payee (income earner) who has the responsibility to file the return and pay the applicable tax.True
    False

Answer 24

True

Question 25

50. Non-resident alien may claim optional standard deduction.True
    False

Answer 25

False