QUIZ 9

Question 1

113. A foreign corporation could either be resident or non-resident

True
False

Answer 1

True

Question 2

114. A foreign corporation is subject to tax only on income from Philippine sources.

True
False

Answer 2

True

Question 3

115. In general, net income from all sources of domestic corporations is taxable at 30%.

True
False

Answer 3

False

Question 4

116. Resident foreign corporations are taxed in the same manner as domestic corporations.

True
False

Answer 4

True

Question 5

117. Government owned or controlled which are exempted from income taxes includes Social Security System (SSS).

True
False

Answer 5

True

Question 6

118. Gross Philippine Billing of International Air Carrier means gross revenue whether for passenger, cargo or mail originating from the Philippines up to final destination, regardless of the place of sale or payments of the passage or freight documents.

True
False

Answer 6

False

Question 7

119. Resident foreign corporation which is an international carrier is taxable with its gross
     Philippine billings at:

*
2.5%
7.5%
10%
0%
15%
5%
Other:

Answer 7

2.5%

Question 8

120. It is a foreign corporate entity engaged in trade or business in the Philippines which is taxed as domestic corporation.

• non-resident foreign corporation
• resident foreign corporation
• domestic corporation
• All of the choices
• Other:

Answer 8

• resident foreign corporation

Question 9

121. It is a foreign corporation in the Philippines that is allowed by SEC to do business in the Philippines in such activities it normally does in its home country.

• Branch
• regional or area headquarters
• representative office
• regional operating headquarters
• Other:

Answer 9

Branch

Question 10

122. CREATE Act is short term for:

• Corporate Recovery and Tax Incentives for Enterprises
• Corporate Resiliency and Tax Incentives for Enterprises
• Corporate Recovery and Tax Incentives for Entities
• Corporate Recovery and Tax Income for Enterprises
• Corporate Resiliency and Tax Income for Enterprises
  Other:

Answer 10

• Corporate Recovery and Tax Incentives for Enterprises

Question 11

123. It is subject to tax on its worldwide income.

• resident foreign corporation
• non-resident foreign corporation
• All of the choices
• domestic corporation
• Other:

Answer 11

• domestic corporation

Question 12

124. It is a foreign corporation required to make an annual inward remittance of capitalization amounting to $200,000.00.

**
- regional operating headquarters
- representative office
- Branch
- regional or area headquarters
- Other:

Answer 12

• regional operating headquarters

Question 13

125. EXEMPT ORGANIZATIONS may not include:

**
- Farmers, fruit growers, or like association organized and operated as a sales agent for the purpose of marketing the products of its members and turning back to them the proceeds of sales, less the necessary selling expenses on the basis of quantity of procedure finished by them.

• Labor, agricultural or horticultural organization not organized principally for profit
• Nonstock and nonprofit educational institution
• Mutual savings bank not having a capital stock represented by shares, and cooperative bank without capital stock organized and operated for mutual purposes and without profit.
• Proprietary educational institution
• Other:

Answer 13

• Proprietary educational institution

Question 14

126. Interest Income derived by the depository bank under the expanded foreign currency deposit system from foreign currency transaction of the following is exempt, except for:

**
- Resident

• Offshore banking units in the - Philippines
• Local commercial banks
• Non-residents
• Branches of foreign banks
• Other:

Answer 14

Resident

Question 15

127. It derives income from extending foreign loans earning interest.

**
- non-resident foreign corporation
- domestic corporation
- All of the choices
- resident foreign corporation
- Other:

Answer 15

• non-resident foreign corporation

Question 16

128. It is a foreign corporation required to make an annual inward remittance of not less than $30,000 to cover operating expenses.

• regional or area headquarters
• regional operating headquarters
• representative office
• Branch
• Other:

Answer 16

• representative office

Question 17

129. The following constitute accumulation if earnings for the reasonable needs of the
     business:

• Earnings reserved for building, plants or equipment acquisition as approved by the Board of Directors or equivalent body;
• Earning reserved for definite corporate expansion project or program requiring considerable capital expenditure as approved by the Board of Directors or equivalent body;
• All of the choices
• Earnings reserved for compliance with any loan covenant or pre-existing obligation established under a legitimate business agreement;
• In the case of subsidiaries of foreign corporations in the Philippines, all undistributed earnings intended or reserved for investments within the Philippines as can be proven by corporate records and/or relevant documentary evidence
• None of the choices
• Earnings required by the law or applicable regulations to be retained by the corporation or in respect of which there is a legal prohibition against its distribution;
• Other:

Answer 17

• All of the choices

Question 18

130. It is a foreign corporate entity with physical presence in the Philippines.

**
non-resident foreign corporation
domestic corporation
resident foreign corporation
All of the choices
Other:

Answer 18

resident foreign corporation

Question 19

131. MCIT may be suspended due to the following reasons:

All of the choices
B Legitimate business
Prolonged labor dispute
None of the choices
Force majeure
Other:

Answer 19

All of the choices

Question 20

132. It is a foreign corporation licensed to do business in the Philippines to deal directly
     with the clients of its parent company abroad.

**

regional or area headquarters
Branch
regional operating headquarters
representative office
Other:

Answer 20

representative office

Question 21

133. Government owned or controlled which are exempted from income taxes does not
     include:

• All of the choices
• None of the choices
• Philippine Health Insurance Corporation (PHIC)
• Social Security System (SSS)
• Philippine Amusement and Gaming Corporation (PAGCOR)
• Government Service and Insurance System (GSIS)
• Other:

Answer 21

Philippine Amusement and Gaming Corporation (PAGCOR)

Question 22

134. Interest on currency bank deposit of ordinary domestic corporation is taxable at:

25%
7.5%
20%
10%
0%
30%
Other:

Answer 22

20%

Question 23

135. Dividends received of ordinary domestic corporation from another domestic corporation is taxable at:

20%
30%
10%
7.5%
0%
25%
Other:

Answer 23

0%

Question 24

136. It is a foreign corporation with main operation to act as supervisory, communications or coordinating center for its affiliates, subsidiaries and branches in the region.

• representative office
• Branch
• regional or area headquarters

-regional operating headquarters

• Other:

Answer 24

• regional or area headquarters

Question 25

137. Corporation may not include:

**
Partnerships

Joint stock companies

Insurance companies

Joint venture undertaking

construction projects

Other:

Answer 25

Joint venture undertaking