1. Hazel signed a deed of donation of a car to Ashley on March 3, 2025.

The donation was accepted, and the deed was signed by Ashley, done,
on March 5 which acceptance was made known to Hazel on March 6.
Physical possession of the car was transferred to Ashley on March 7.
The counting of the 30-day period for filing of donor’s tax return and
payment of tax shall commence on
a. March 7
b. March 6
c. March 5
d. March 3
2. Decedent Jose Dela Cruz, had the following data:
 Value of the property at the time of sale, 1,200,000
 Value of consideration when sold 1,000,000
 Value of property at the time of death 1,500,000

The amount of includible in the gross estate is

a. 200,000
b. 300,000
c. 1,500,000
d. 500,000
3. Given the following establishments:
1. Cebu Pacific Air
2. Pegasus Nightclub
3. Camarines Sur III Electric Cooperative
4. Banco de Oro (Unibank)

Which of the above establishments is/are not subject to Other

Percentage Tax?

a. I only
b. I and III only
c. II and IV
d. III and IV

4. Mr. Joshua, a lessor, rents his 3 commercial and 10 residential units

for a monthly rent of P50,000 and 14,000 per unit, respectively. During the
taxable year, his accumulated gross sales amounted to P3,480,000
(P1,800,000) from commercial units and P1,680,000 from residential units.
Which statement is true?

a. The P1,680,000 accumulated sales from residential units is

not subject to percentage tax.
 b. The P1,800,000 from commercial units is subject to VAT because the
units are commercial.

c. Mr. Joshua is subject to VAT.

d. The P1,800,000 from commercial units is not subject to 3%

percentage tax, while the P1,680,000 million from residential units is
subject to 3% percentage tax.

5. Orion San, a Japanese residing in the Philippine bought garments from

Raycel Corporation, a domestic corporation, and exported the same to Japan.
Total value of export is P100,000. VAT (output tax) due on the transaction is

a. None, because 0% applies

b. None, because the sale is exempt from VAT

c. P5,000

d. P10,000

6. Statement 1: Transport of passengers and cargo by domestic air or sea

vessels from Mindanao to Luzon and Visayas, vice versa, is subject to VAT at
a rate of 12%.

Statement 2: Transport of passengers and cargo by domestic air or sea

vessels from the Philippines to a foreign country is subject to VAT at a rate of
3%. (dapat 0%)

a. False, True

b. True, True

c. True, False

d. False, True

7. Which of the following documents can be validly used in claiming the

Input Tax Credit? (official receipt)

a. Sales invoice issued by non-VAT seller

b. Invoice issued by VAT seller

c. Delivery receipt

d. Acknowledgment receipt

8. Statement 1: The exporter sells the goods to foreign buyers. (zero rated)
Statement 2: The food processor transforms the food products into
processed foods and sells to a wholesaler/exporter. (vat)

Statement 3: An agricultural food producer sells his products in their original

state to a food processor who also buys packaging materials and containers
from a manufacturer/supplier. (vat exempt)

*walang tanong dito kaya di ko alam sagot 😊

a. Statement 1

b. Statement 2

c. Statement 3

d. None of the above

9. Which statement is false? Shares of stocks shall be valued

a. if unlisted common shares-using adjusted net asset method

b. if unlisted preferred shares-par value

c. if unlisted common shares-book value

d. if listed shares-arithmetic mean of highway and lowest quoted prices

in the stock exchange on the valuation date

10. Quasi-banking activities shall refer to the borrowing of funds from:

a. more than twenty corporate lenders at any one time.

b. more than twenty personal or corporate lenders at any one time.

c. more than twenty corporate lenders at any one time.

d. twenty or more personal or corporate lenders at any one

time.

11. Which of the following statements is correct?

1. A VAT-registered telephone company that provides services for

domestic and overseas calls is subject to value-added tax only.

2. Amounts paid for messages transmitted by an embassy and

consular offices of a foreign government are not subject to 10% overseas
communication tax.

a. 1 only
 b. 2 only

c. Both 1 and 2

d. Neither 1 nor 2

12. Under Section 119 – Franchises, which of the following statements is

incorrect?

1. Radio, and/or television broadcasting companies are subject to

value-added tax if their annual gross sales in the preceding year exceed
P10,000,000.

2. Franchise on toll road operations is subject to value-added tax.

3. Franchise grantees of city gas and water utilities are subject to the
3% percentage tax.

a. 1 only

b. 1 and 2 only

c. 2 and 3 only

d. 3 only

13. Which amount the following is subject to zero percent vat?

1. Sale, importation or lease of passenger or cargo vessel and aircraft

including engine, equipment, and spare parts thereof for domestic or
international transport operations.

2. Transport of passengers and cargo by a domestic carrier (air or sea)

from the Philippines to a foreign country.

a. 1 only

b. 2 only

c. Both 1 and 2

d. Neither 1 nor 2

14. Reciprocity clause is applied to?

1. Non-resident alien donating real property

2. A donation of tangible property by a non-resident alien

3. When a resident alien donates intangible property

 4. A donation by a non-resident alien of intangible property

a. 1 only

b. 2 only

c. 3 only

d. 4 only

15. di ko napicturan hehe :3

16. Determine whether the following properties under the Absolute

Community of Property (ACoP) regime are classified as common or exclusive.

1. Property acquired by gift before marriage

2. Property owned before marriage for personal and exclusive use of

the decedent

3. Real property acquired during marriage with the decedent’s own

income

a. Exclusive, Exclusive, Community

b. Exclusive, Exclusive, Exclusive

c. Community, Community, Community

d. Community, Exclusive, Exclusive

17. Statement 1: The power of the decedent-transferor to revolve terms

may be exercised just once.

Statement 2: In a revocable transfer, the decedent during his lifetime

may revoke, after, amend, or terminate the terms of enjoyment or ownership
of the property.

a. True, False

b. False, True

c. False, False

d. True, True

18. Statement 1: Under the law on legitime, if the only survivor is the
widow or widower, she or he shall be entitled to one half of the hereditary
estate of the deceased spouse, and the testator may freely dispose of the
remaining.
 Statement 2: A free portion of the state could be transferred to
compulsory heirs by virtue of a will.

a. True, False

b. False, True

c. True, True

d. False, False

19. Statement 1: Inheritance refers to all the property, rights, and

obligations of a person which are not extinguished by death and all which
have accrued thereto since the opening of succession.

Statement 2: Heir who inherits real property by will is known as devisee.

Statement 3: A person appointed by the testator to carry out the

provisions of the will is called executor.

a. True, True, False

b. False, True, True

c. False, False, False

d. True, True, True

20. Statement 1: A donation on which the donor’s us not paid is a valid

donation.

Statement 2: Reciprocity clause is applied to non-resident alien donating

real property.

a. True, True

b. False, False

c. True, False

d. False, True

21. Who is not an inestate heir?

a. Collateral relatives within the 6th degree

b. State

c. Legitimate children/decendants

d. Legitimate parents/ascendants
 22. Pedro, a citizen of the Philippines and resident of Baliwag City, died
testate on May 10, 2020. Among his gross estate are properties inherited
from his deceased father who died April 4, 2017. What percentage of
deduction will be used in computing the amount of vanishing deduction?

a. 20% of the value taken as basis for vanishing deduction

b. 40% of the value taken as basis for vanishing deduction

c. 60% of the value taken as basis for vanishing deduction

d. 80% of the value taken as basis for vanishing deduction

23. In 2024, Jose gave cash of P80,000 as a birthday gift to his son, John.
Jose has not given any other gifts or donation in 2024 but made a donation
to his daughter in the same amount in 2025. Base on the above information
in 2024, Jose is

a. Liable to pay donor’s tax

b. Liable to pay donee’s teax

c. Exempted from paying donee’s tax

d. Exempted from paying donor’s tax

24. One of the following is not a community property of the spouses

a. Fruits of property inherited before marriage

b. Fruits of property inherited during marriage

c. Winning in gambling

d. Property inherited by the husband before marriage

25. Exemption from VAT is limited to the following, except

a. raw agricultural food

b. health

c. agricultural non-food

d. education