Philippine Economic Zone Authority

1. It is the government agency tasked to promote investments, extend assistance, register, grant incentives to and
facilitate the business operations of investors in export-oriented manufacturing and service facilities inside
selected areas throughout the country which are proclaimed as special economic zones.
A. CEZA C. SBMA
B. PEZA D. BOI

2. The Philippine Economic Zone Authority is an attached agency under the

A. Department of Finance
B. Department of Trade and Industry
C. Board of Investments
D. Department of Budget and Management

3. Which of the following fiscal incentives may be given to qualified entities under the PEZA Law?
A. VAT zero-rating on their local purchases of goods and services
B. Income tax holiday
C. 5% gross income tax in lieu of all taxes
D. All of the above

4. An enterprise registered with the PEZA on a pioneer status may be entitled to an income tax holiday of
A. Three years C. Five years
B. Four years D. Six years

5. An enterprise registered with the PEZA on a non-pioneer status may be entitled to an income tax holiday of
A. Three years C. Five years
B. Four years D. Six years

6. The income tax holiday of PEZA registered enterprises may be extended for up to
A. Three years C. Five years
B. Four years D. Six years

7. After the lapse of the income tax holiday incentive, in lieu of all taxes, a PEZA-registered enterprise is subject to
A. 30% regular corporation income tax
B. 15% gross income tax
C. 10% preferential net income tax
D. 5% gross income tax

8. In general, a PEZA-registered enterprise enjoying income tax holiday is still subject to

A. VAT on local purchases
B. Minimum corporate income tax
C. Local business tax
D. Real property tax

9. A PEZA-registered enterprise that is subject to 5% gross income tax is exempt from

A. Improperly accumulated earnings tax on its excess retained earnings
B. Final withholding tax on the dividends it paid to its stockholders
C. Expanded withholding tax on its payments to local suppliers of goods and services
D. All of the above

10. Alunan Corporation is a PEZA-registered export enterprise and enjoys tax incentives pursuant to the PEZA Law. It
had the following profit and loss data for 2018, the year when the expiration of its income tax holiday incentive as
a pioneer enterprise took effect:

Export sale of PEZA-registered products 120,000,000

Other income – gain on sale of delivery vehicles 5,000,000
Cost of goods sold 65,000,000
Administrative and operating expenses 45,000,000

What is the total amount of taxes that Alunan should remit to the Bureau of Internal Revenue?
A. 4,500,000 C. 3,150,000
B. 4,250,000 D. 1,500,000

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