1st statement: An income tax is levied on income from property or an occupation.

It is a direct
tax upon the thing called income.

2nd statement: An income tax is imposed upon person within the jurisdiction of the state to raise
revenue for the support of the government.
Both are true

It is imposed on the right or privilege of a person to receive or earn income. It is not a personal
tax or a property tax. It is one of the characteristics of Philippine Income Tax. This refers to
Excise Tax

Which of the following is not considered income?

Return of capital

Which of the following is not necessary for income to be taxed?

The gain must be paid in cash

All of the following is an example of constructive receipt of income, except?

Interest credited on savings bank deposit // Dividends applied by the corporation against
the indebtedness of a stockholder

Which of the following ascribed to the place wherein the income is earned?
All of these

Which of the following is a constructive receipt of income?

Receipt of payment from customers on account

All of the following except one are considered constructive receipts for income tax purposes.
Which is the exception?
Property borrowed by the taxpayer

I. All wealth that flows to the taxpayer's hands are income

II. The cancellation of a taxpayer's indebtedness is an income unless such cancellation of

indebtedness is a gift.
Both statements are incorrect // 2nd statement is correct

Although not yet distributed, a partner's share in the profit of the general professional
partnership is regard as income.
Both statements are correct // 1st statement is correct

If an individual performs services for a creditor who in consideration thereof cancels the debt,
the cancellation of indebtedness may amount to
a payment of income
In general, which of the following is a valuation basis of compensation income received in the
form of cash?
Face value of compensation received

Which of the following instances does not constitute taxable income?

Cancellation or forgiveness of debt of an individual debtor by a corporate creditor where
such individual is a stockholder of said corporate creditor // Condonation of debt by the
creditor in favor of the debtor without onerous consideration

As a general rule, pure stock dividends are not subject to tax, except when:
All of the above

Which of the following interest income is subject to basic tax?

Interest income earned by resident citizens from dollar deposit in US Banks // Interest
income earned by resident citizens from dollar deposit in Philippine banks

Income tax is generally regarded

as an excise tax // a tax on persons

An income tax is a tax

On the yearly profits arising from employment, property, professions, trades and offices

Global system of income taxation" means

All types of income, except those subject to final tax, are added together to arrive at
taxable income

It is important to know the source of income for income tax purposes, i.e. from within or without
the Philippines because
Some taxpayers are taxed on their worldwide income while others are taxable only upon
income from sources within the Philippines

A resident citizen who, at the start of the year, departs from the Philippines to work abroad Non-
resident citizen

A non-resident citizen who, at the start of the year, returns to reside in the Philippines
Resident citizen

An alien who shall have stayed in the Philippines for more than 180 days
Non-resident alien engaged in business in the Philippines

An alien who shall have stayed in the Philippines for more than one year
Resident alien
A citizen who stayed outside the Philippines for 180 days
Resident citizen

On May 31, 2021, Angie, non-resident citizen, returned to reside permanently in the Philippines.
His income for the year shows:

1. Which of the following is wrong?

C. He is considered resident citizen from January 1, 2021 to December 31, 2021

2. Which is not taxable?

C. The USA income of $50,000

3. Assuming that he is a resident citizen who left the Philippines to reside in USA, which is not
taxable?
D. The USA income of $20,000

Who among the following is a non-resident alien not engaged in business?

An alien who comes to the Philippines for a definite purpose which in nature may be
promptly accomplished

The following is/are subject to 25% final tax on their gross income in the Philippines
Non-resident alien individual not doing business in the Philippines

Taxpayer received the following income in 2021:

1. If the taxpayer is a resident citizen, his returnable gross income is

B. P85,000

2. If the taxpayer is a non-resident citizen, his returnable gross income is

A. P18,000

3. If the taxpayer is a resident alien, his returnable gross income is

A. P18,000

4. If the taxpayer is a non-resident alien ETB, his returnable gross income is

A. P18,000

5. If the taxpayer is a non-resident alien NETB, his returnable gross income is

C. P103,000

Guyito had the following data for taxable year 2021:

1. If the taxpayer is a resident of the Philippines who is married, his taxable income is
B. P248,387.51
2. If the taxpayer is a resident of the Philippines with residence in the United States who is
married, the taxable income is
B. P248,387.51

3. If the taxpayer is a resident alien who is married, his taxable income is

B. P186,331.25

4. If the taxpayer is a non-resident alien engaged in the business in the Philippines who is
married and the law of his country allows full reciprocity, the taxable income under the CREATE
Law is
B. P186,331.25

5. If the taxpayer is a non-resident alien not engaged in the business in the Philippines who is
married, the taxable income is.
B. P380,600.28

1. Substituted filing of income tax return means that the individual compensation income earner
does not have to file an income tax at the end of the year

II. The annual information return on income taxes withheld on compensation income filed by the
employer is the substituted filing of income tax return by the employee

Group of answer choices

c
a
d
B

The income tax return of a parent includes the income of unmarried child
If the child is minor and the income was derived from the property received as gift from a
living parent, where the donor's tax was not paid

Kuya Jervs, a 6'5-footer American basketball coach was initially assigned as a consultant by ine
of the professional basketball teams in the Philippine Basketball Association for the 2nd
conference only Of 2018 season. Subsequently, he was signed as the coach of the Pakitang-
Gilas Pilipinas national basketball team. Thus, his stay is extended indefinitely. What kind of
individual taxpayer is he?
Resident Alien

Which of the following is not taxable in the Philippines?

Personal property purchased within, sold without // Personal property purchased within,
sold within
Which of the following is/are not a test in determining whether income is earned for income tax
purposes?
None of the choices

Any person required to file a tax return, statement or document shall be registered and assigned
a TIN. What does TIN mean?
Taxpayer Identification Number