1.

A business tax that is based on a given ratio between the gross sales or receipts and
the burden imposed upon the taxpayer which is based on a set ratio between the
volume of sales and the amount of the tax.
a. a) Percentage tax c) Donor’s tax
b. b) Income Tax d) Documentary stamp tax

2. First statement: Other percentage taxes are indirect taxes that can be passed on by
person required to pay to another person who shall bear the burden of the tax.
3. Second Statement: Persons and transactions that are subject to the other percentage
taxes are no longer subject to the value-added tax but maybe subject to excise tax.
a. a) Both statements are correct. b) Both statements are incorrect.
b. c) Only the first statement is correct. d) Only the second statement is
correct.

4. A seller of goods is not VAT registered. His annual gross sales amount to P3,000,000
(VAT Threshold amount.) To what business tax is he liable?
a. a) 1% tax on VAT-exempt persons b) 12% value-added tax
b. c) 3% common carrier’s tax d) Not subject to any percentage
tax

5. First statement: Persons whose transactions are exempt from value-added tax
under Section 109 (b) because their sales or receipts do not exceed the VAT
threshold amount may voluntarily apply for registration under the VAT system.

6. Second statement: a VAT-registered person whose gross sales or receipts for two
(2) consecutive years did not exceed the VAT Threshold amount may apply for
cancellation of VAT registration and revert back to being VAT-exempt under Section
109 (x0.
a. a) Both statements are correct. b) Both statements are incorrect.
b. c) Only the first statement is correct. d) Only the second statement is
correct.

7. 5. Which of the ff is not subject to the 3% common carrier’s tax?

a) Cars for rent or hire driven by the lessee
b) Transportation contractors, including persons who transport
passengers for hire.
c) Domestic carriers by air for the transport of passengers
d) Keepers of garage

8. 6. International carriers doing business in the Philippines is subject to the:

 a) 3% percentage tax on gross receipts derived from the transport of
cargo and/or mail from the Philippines to another country.
b) 3% percentage tax on gross receipts derived from the transport
cargo, mail and passenger from the Philippines to another
country.
c) 12% value-added tax on their gross receipts derived from the
transport of cargo from the Philippines to another country.
d) 0% percent value-added tax on their gross receipts derived from the
transport of cargo and passenger from the Philippines to
another country.

9. 7. Which of the ff franchise grantees is subject to the 2% percentage tax on

franchise?
a) Franchise on radio and/or television broadcasting companies the
gross annual receipts in the preceding year do not exceed
P10,000,000.
b) Franchise on gas and water utilities
c) Franchise on toll road operations
d) PAGCOR and its licensees and franchisees.

10. 8. How much tax shall be collected upon every overseas dispatch, message or
conversation transmitted from the Philippines by telephone, telegraph, telewriter
exchange, wireless and other communication equipment service?
a. a) 3% on gross receipts c) 10% on the amount paid for the
services
b. b) 5% on gross receipts d) 12% on the amount paid for the
services.

11. 9. One of the ff statements is incorrect:

a) Overseas communications tax is imposed on overseas
communications originating from the Philippines.
b) The person liable to overseas communications tax may or may not
be engaged in any trade or business.
c) The overseas communication tax is imposed whether the overseas
communications are made in the course of trade or business or
not.
d) The overseas communications tax is imposed on the owners of the
communications facilities used to make overseas
communications.
12. 10. When is the tax on overseas dispatch, message or conversation originating from
the Philippines paid?
a) Thirty (30) days after the end of the month.
b) Twenty (20) days after the end of the month.
c) Twenty (20) days after the end of the quarter.
d) Five (5) days after the end of the quarter.