1. D.

Hospital under health services whether it is a private, non-profit or government hospital are not
subjected to business tax. Services rendered by the professionals and pharmaceuticals are only
subjected to VAT.
2. A. Purely employed professional is not subjected to business tax because employment is not a
business and compensation income is exempt from business tax.
3. D. Employee is not subjected to business tax as I mentioned in number 2 employment is not a
business and compensation income is exempted in business tax. What is included in business tax is
their professional fees.
4. A. Regional operating headquarters are operating in the Philippines which are assumed to have
profit hence subjected to business tax.
5. D Only hospital services are exempt from medical service. Services in practice of their
professionalism are subjected to VAT.
6. A Medicines are part of pharmaceuticals and sale of drugs are vatable hence subjected to business
tax.
7. D Education is a necessity for every individual. Whether the school is a private, public or non-profit
they are exempted from business tax giving considerations of the government requirements.
8. D Rent income is not necessarily part of education hence part of business tax.
9. C Sale of ballpen and notebooks is part of earning profit hence it is vatable. Other than the choices,
they are necessities so exempt from business tax.
10. B DOH is not an accrediting agency of school so is not part of exempting from business tax.
11. D All of the choices are part of the activities related to books which are exempted from business
tax. Printing, sale and publication is related to education which are exempted to business tax.
12. B General rule sales by persons not engaged in business is not subject to business tax.
13. C Property held for use may not be subject to business tax when they are not engaged in
businesses.
14. C Realty dealers, developers or lessors are usually registered as vat taxpayers because they are
normally engage in the real estate business.
15. A Properties classified as ordinary assets is vatable for the property is used in business which
made the dealer a VAT taxpayer.
16. D All of the following are exempt under certain price condition as they are all necessity to
individual and used in residential properties.
17. D Motels is not part of necessity so it does not apply on the rent limit on residential dwellings.
18. B International carrier is exempted in business tax because of the territoriality concept.
19. A International carrier is involved only in air carriers and sea carriers, it does not apply in land
transport for non-traffic purposes.
20. B International carrier is owned by a foreign corporation which they are doing business here in the
Philippines. They are shipping goods or services here in our country.