Which of the following corporations shall pay a tax ABC Company and DEF Company formed a joint

equal to thirty percent (30%) of the gross income venture. They agreed to share profit or loss in the
received during each taxable year from all sources ratio of 70% and 30%, respectively. The results of
within the Philippines? operations of the joint ventures well as the co-
Nonresident foreign corporation venturers are as follows:
Joint Venture ABC Co. DEF Co.
Statement 1: Joint ventures, regardless of the Gross Income P5,000,000 3,000,000 2,000,000
purpose by which they were created, are generally OPEX 3,000,000 2,000,000 1,500,000
exempt from corporate income tax. The income tax payable of the joint venture is:
Statement 2: The share of a co-venturer corporation 500,000
in the net income of tax exempt joint venture or
consortium is subject to corporate income tax. Garcia, Ramos, Toribio and Co., CPAS (GRT & Co.),
Only statement 2 is correct. are partners of an accounting firm. The 2020
financial records of the firm disclosed the following:
Which of the following does not have the benefit of Service Revenue P4,490,000
claiming deductions in computing income tax? Cost of Services 1,610,000
Non-resident Foreign Corporations Operating Expenses 800,000
Rental Income 500,000
Statement 1: A Partner of a GPP is not required to Interest Income from bank
200,000
include in his personal gross income in his share in deposit
the distributable income of the GPP. Interest income from FCDS
280,000
Statement 2: Corporations may form a taxable deposit
partnership but not a GPP. Ramos is also engaged in business with the
Statements 1 &2 are false. following data for the year:
Gross Sales P2,500,000
During the 2018, a domestic corporation derived the Cost of Sales 1,250,000
following items of revenues: Operating Expenses 550,000
A. Gross receipts from a trading business, P500,000 How much is the distributable income of the GPP?
B. Interests from money placements in the banks, 2,978,000
P30,000
C. Dividends from its stock investments in domestic Le Bron Corporation has the following information for
corporations, P20,000 the current taxable year:
D. Gains from stock transactions through the RCIT MCIT CWT
st
Philippine Stock Exchange, P50,000 1 Quarter 200,000 160,000 40,000
nd
E. Proceeds under an insurance policy on the lost of 2 Quarter 240,000 500,000 60,000
goods, P100,000 3rd Quarter 500,000 150,000 80,000
th
How much should the corporation report as taxable 4 Quarter 300,000 200,000 70.000
income? Additional information:
P500,000 MCIT carry-over from prior year amounts to
P60,000. Excess tax credits from prior year
As a rule, there is no income tax if there is no amounts to P20,000.
income. Which of the following is the exception? How much was the income tax payable for the
Capital Gains Tax on sale of land and/or second quarter?
building 460,000

Which of the following statements is wrong? The term applies to a foreign corporation engaged in
A general partnership in trade is not taxable as trade or business in the Philippines.
a corporation. Resident foreign corporation

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 TGT & Co. is a general partnership in trade and in For purposes of taxation, partnership is
its fifth year of operations. During the current taxable I. Classified into two major categories, partnership in
year, it had a gross profit from sales and business trade and general professional partnership.
expenses of P2,000,000 and P1,000,000, II. Partnership in trade is treated as corporate
respectively. T, G, and T share equally in the profits taxpayer.
and losses of the partnership. The income tax due of III. General professional partnership is exempt from
the partnership is: income tax.
P300,000 I, II and III

Garcia, Ramos, Toribio and Co., CPAS (GRT & Co.), Statement 1: Corporations exempt from income tax
are partners of an accounting firm. The 2020 are not subject to income tax on incomes received
financial records of the firm disclosed the following: which are incidental or necessarily connected with
Service Revenue P4,490,000 the purposes to which they were organized and
Cost of Services 1,610,000 operating.
Operating Expenses 800,000 Statement 2: Corporations exempt from income tax
Rental Income 500,000 are subject to income tax on income of whatever
Interest Income from bank kind and character from any of their properties (real
200,000
deposit or personal) or from any other activity conducted for
Interest income from FCDS profit, regardless of the disposition of such income.
280,000
deposit Both statements are correct.
Ramos is also engaged in business with the
following data for the year: Garcia, Ramos, Toribio and Co., CPAS (GRT & Co.),
Gross Sales P2,500,000 are partners of an accounting firm. The 2020
Cost of Sales 1,250,000 financial records of the firm disclosed the following:
Operating Expenses 550,000 Service Revenue P4,490,000
How much is the distributive share of each partner in Cost of Services 1,610,000
the total income of the GPP? Operating Expenses 800,000
992,667 Rental Income 500,000
Interest Income from bank
200,000
Which of the following statements is correct? deposit
I. The term "domestic", when applied to a Interest income from FCDS
280,000
corporation, means created or organized in the deposit
Philippines or under the laws of a foreign country as Ramos is also engaged in business with the
long as it maintains a Philippine branch. following data for the year:
II. A corporation which is not domestic may be a Gross Sales P2,500,000
resident (engaged in business in the Philippines) or Cost of Sales 1,250,000
nonresident corporation (not engaged in business in Operating Expenses 550,000
the Philippines). How much is the taxable income of Ramos during
III. Resident foreign corporations are subject to the year?
income tax based on net income from sources within 1,560,000
the Philippines.
II and II only A taxable partnership may be subject to the following
taxes:
I. Minimum corporate income tax
II. Regular corporate income tax
III. Improperly accumulated earnings tax
I and II only

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 Le Bron Corporation has the following information for
the current taxable year:
RCIT MCIT CWT
st
1 Quarter 200,000 160,000 40,000
nd
2 Quarter 240,000 500,000 60,000
3rd Quarter 500,000 150,000 80,000
th
4 Quarter 300,000 200,000 70.000
Additional information:
MCIT carry-over from prior year amounts to
P60,000. Excess tax credits from prior year
amounts to P20,000.
How much was the income tax payable for the first
quarter?
80,000

Le Bron Corporation has the following information for

the current taxable year:
RCIT MCIT CWT
st
1 Quarter 200,000 160,000 40,000
2nd Quarter 240,000 500,000 60,000
rd
3 Quarter 500,000 150,000 80,000
4th Quarter 300,000 200,000 70.000
Additional information:
MCIT carry-over from prior year amounts to
P60,000. Excess tax credits from prior year
amounts to P20,000.
How much was the annual income tax payable?
230,000

If the property is located abroad, what type of income

tax will apply on the transaction?
Basic income tax

Statement 1: Under RA10963, an individual partner

of a GPP applying optional deduction is not allowed
for any deduction on his distributive shares.
Statement 2: Under RA10963, an individual partner
of a GPP may avail of 80% tax on his distributive
share, in lieu of graduated tax rate.
Only statement 1 is correct.

Which of the following is taxable based on income

from all sources, within and without?
Domestic Corporations

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