Real Estate Laws And Taxation

Question 1

Is the inherent power of the sovereign State to raise money or revenue necessary to finance the functions and operations of the government.

Answer 1

Taxation

Question 2

Constitutional Basis: Each local government unit shall have the power to create its own sources of revenues and to levy taxes, fees and charges subject to such guidelines and limitations as the COngress may provide, consistent with basic policy of local autonomy. Such TFC - taxes, fees and charges shall accrue exclusively to the local governments.

Answer 2

Section 5, Article X, 1987 Constitution

Question 3

National Internal RRevenue Code of 1997, amended

Answer 3

RA 8424
Jan 1, 1998

Question 4

TRAIN

Answer 4

Tax Reform for Acceleration and Inclusion

Question 5

RA 10963

Answer 5

TRAIN
Jan 1, 2018

Question 6

CREATE Law

Answer 6

Corporate Recovery And Tax Incentives for Enterprises

Question 7

CREATE is RA_____

Answer 7

RA 11534
Apr 11, 2021

Question 8

Ease of Paying Taxes

Answer 8

RA 11976
Jan 22, 2024

Question 9

Taxes are essential and indispensable to the continued subsistence of the gov’t.

Answer 9

The Lifeblood Doctrine [in Taxation].

Question 10

Situs in place of Taxation

Answer 10

Business Tax situs - where biz is conducted
Income tax situs on services - service fees are taxed where they are rendered
Income tax situs on sale of goods - in place of sale
Property tax situs - taxable in their location
Personal tax situs - in their place of residence

Question 11

Interpretation of Tax Laws. When the language of the law is clear and categorical, there is no room for interpretation. There is only room for application. However, when taxation laws are vague, the _____________ is observed.

Answer 11

Doctrine of strict legal construction

Question 12

Refers to any act or trick that tends to illegally reduce or avoid the payment of tax

Answer 12

Tax evasion / Tax dodging

Question 13

Refers to any act that reduces or totally excapes taxes by any legally permissible means

Answer 13

Tax avoidance / Tax minimization

Question 14

Modes of Transferring REal Property

Answer 14

Sale
Donation
Inheritance

Question 15

Sale of property hwere the initial payments of which in the year of sale EXCEEDS 25% of the gross selling price. Considered as Cash Sale.

Answer 15

Deferred Payment

Question 16

Sale of RP where the initial payments of which in the year of sale DO NOT EXCEED 25% of the gross selling price.

Answer 16

Installment plan

Question 17

Examples of ordinary assets

Answer 17

• RP included in inventory for sale to customers
  -RP acquired by banks thru foreclosures
  -RP used in trade or business of TP

Question 18

Properties shall AUTOMATICALLY be converted into CAPITAL ASSETS upon showing proof that the same have not been used in business for _____ years prior to consummation of the taxable transactions involving said properties

Answer 18

2 years

Question 19

National Taxes in Sale of RP in Ordinary Assets

Answer 19

VAT
EWT
IT
DST

Question 20

National Taxes in Sale of RP in Capital Assets

Answer 20

CGT
DST

Question 21

Is a tax on consumption levied on the sale, barter exchange or lease of goods or properties…..

Answer 21

VAT

Question 22

BIR Form for VAT

Answer 22

2550Q

Question 23

VAT Rate

Answer 23

12% for good and services

Question 24

When is the filing of VAT

Answer 24

25 days ff close of each taxable quarter or Apr25,July25,Oct25,Jan25

Question 25

Vat due on the sale of lease of taxable good or properties by any VAT registered person

Answer 25

Output Tax

Question 26

VAT Payable

Answer 26

Output Tax (the VAT due on the SALE by any registered person) - Input Tax ( Vat due from or PAID by a VAT registered person)