Corporate

Income Tax
Questions

1. Discuss the classification and taxability of the Corporate Taxpayers

(i.e. Domestic Corporation, Resident Foreign Corporation, Non-
resident Foreign Corporations)

2. Distinguish an Ordinary Corporation and Special Corporations

3. What are the exempt organization not subject to Corporate Income

Tax
Questions

4. What are the passive income and the corresponding tax rates
under the classification of the corporations?

5. What are the allowable deductions under the Tax Code?

6. What are the deductions subject to ceilings or limitations?

Questions

7. What is the concept of the Minimum Corporate Income Tax

(MCIT)?

8. What is the concept of the Improperly Accumulated Earning Tax

(IAET)?

9. What is the concept of the Branch Profit Remittances Tax (BPRT)

Short Case
ABC Corporation has the following data for the 2020 taxable year -

Gross Income, Phils 1,000,000

Gross Income, USA 500,000
Gross Income, Japan 500,000
Expenses, Phils 300,000
Expenses, USA 200,000
Expenses, Japan 100,000

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Short Case
ABC Corporation has the following data for the 2020 taxable year -

Dividend from San Miguel Corp. 70,000

Dividend from Ford Motors, USA 120,000
Gain on sale of San Miguel shares directly to buyers 150,000
Royalties, Phils. 50,000
Royalties, USA 100,000
Interest receivable in the Philippines 60,000
Rent Income, land in USA 250,000
Rent Income, Building in the Philippines 100,000

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Short Case

ABC Company also sold a condominium classified as capital asset for

P2,000,000. The cost of the condominium is P1,000,000 while its Zonal
Value is P3,000,000.

Page 3 of 4
Short Case

Questions
A. Compute for the income tax if ABC is a Domestic Corporation.
B. Compute for the income tax if ABC is Resident Foreign Corporation
C. Compute for the income tax if ABC is a Non-Resident Foreign
Corporation
D. Compute for those income subject to final tax if ABC is a Domestic
Corporation

Page 4 of 4
General Instruction

1. Answers should be presented in the ppt.

2. Last slide will be a group picture.
3. The ppt should be emailed at rribarra@pup.edu.ph
4. The prescribed format is: Year&Section_Group No_CIT Basic