Professional Documents
Culture Documents
1
The amount of P90,000 under "other benefits" which are excluded from gross income shall.
I. Not be applicable to self employed individuals
II. Not be applicable to income generated from the conduct of trade or business.
III. Shall be applicable to all types of income
CHOICES:
a. I and II only
b. None of the given statements
3. I only
4. I, II, and III
No. 2
Which of the following statements is correct?
CHOICES
a. National legislation is exercised by the lower and upper house
b. Interpretation of tax laws is solely done by the judicial branch of the government not sure
c. The national and local government units exercise the inherent power to tax
d. Local government units could exercise the power of taxation through legislated delegation
No. 3
Statement 1: Monetized value of unused sick leave credits not exceeding 10 days to DLSUD employees is a tax exempt benefit.
Statement 2: Monetized value of unused sick leave credits exceeding 10 days to PhilHealth employees is a tax exempt benefit.
CHOICES
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are incorrect
d. Both statements are correct
No. 4
DLSUD granted a scholarship abroad to John, one of the regular faculty members. The management of DLSUD believed that the
university will be able to improve its accountancy program through the scholarship grant. Nonetheless, no written contract was
executed between DLSUD and John requiring the latter to remain in the employ of the employer for a certain period of time. The
scholarship grant is:
CHOICES
a. None of the statements provided
b. De minimis benefits, hence, tax-exempt regardless of rank
c. Subject to basic income tax or fringe benefit tax depending on the rank of John
d. The benefit was provided for the benefit of the employer, hence, non-taxable on the part of the employee
No. 5
Which of the following statements is correct?
CHOICES
a. Interest income on time deposit with maturity of at least five (5) years is exempt in income tax.
b. Interest income on treasury bills with maturity period at least five (5) years is exempt in final tax
c. The tax exemption on long term bank deposit or investment extends to all types of taxpayers.
d. Both "a" and "b"
e. Both "b" and "c"
f. Statements "a", "b" and "c"
No. 6
The income tax due of a mixed income earner who opted to be taxed at 8% income tax rate shall be:
CHOICES
a. The tax due from compensation, computed using the graduated tax rate.
b. The tax due from self-employment and/or practice of profession, resulting from the multiplication of the 8% income tax rate with
the total of the gross sales/receipts and other non-operating income.
c. Either "a" and "b", at the option of the self-employed and/or professional
d. The combination of "a" and "b"
No. 7
Which of the following conditions is required in order that expenses insurred or paid by an employee but which are paid or
reimbursed by his employer will be exempt from income tax?
I. The expenditures are duly receipted and in the name of the employer
II. The expenditures are not of a nature of a personal expenses attributable to the employee
CHOICES
a. I only
b. II only
c. Both I and II
d. Any of I and II
No. 8
Statement 1: If an employee had two employers consecutively within the year, an income tax return must be filed at the end of the year
Statement 2: If an employee had three employers, on succession, for each of the past 3 years, substituted filing of return is not allowed
CHOICES
a. Statement 1 is true but statement 2 is false
b. Statements 1 and 2 are true
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are false
No. 9
Statement 1: Meal allowance and lodging furnished by the employer to the employees are exempt from tax if furnished for the
"advantage and convenience of the employer"
Statement 2: Tax exempt meal allowance hould be furnished within the premises of the employer.
CHOICES
a. Only statement 2 is correct
b. Both statements are correct
c. Both statements are incorrect
d. Only statement 1 is correct.
No. 10
Which of the following statements is/are true?
I. All housing benefits provided by employer to managerial employees, whether assignment or with transfer of ownership, are
subject to fringe benefit tax
II. Fringe benefits are forms of incentives to managerial employees.
III. Fringe benefits include only salaries and services, or similar benefits given by employer to a managerial employee.
CHOICES
a. III only
b. II and III
c. I only
d. II only
e. I and II
f. I, II and III
No. 11
The determination of the fringe benefit tax would entail the following except:
CHOICES
a. Determination of the percentage of the benefit subject to the fringe benefit tax.
b. Determination of the manner by which the fringe benefit has been utilized by the employee.
c. Determination of the grossed-up monetary value of the fringe benefit.
d. Valuation of the fringe benefit.
No. 12
Statement 1: The provision of the Tax Code, as amended, which allows an 8% income tax rate on gross sales/receipts and other
non-operating income in excess of P250,000 is available only to purely self-employed and/or professional
Statement 1: The provision of the Tax Code, as amended, which allows an 8% income tax rate on gross sales/receipts and other
non-operating income in excess of P250,000 is available only to purely self-employed and/or professional
Statement 2: The P250,000 mentioned in the 1st statement is not applicable to mixed income earners since it is already
incorporated in the first tier of the graduated income tax rates applicable to compensation income.
CHOICES
a. Both statements are correct
b. Only statement 1 is correct
c. Only statement 2 is correct
d. Both statements are incorrect
No. 13
Statement 1: A "fringe benefit" benefit is any goods, service or other benefits furnisihed or granted by an employer in cash or in
kind in addition to basic salaries to individual employee.
Statement 2: The term "compensation income" means all remuneration for services performed by an employee for his employer
under an employee-employer relationship, unless specifically excluded
CHOICES
a. Both statements are correct.
b. Only statement 2 is correct.
c. Both statements are incorrect.
d. Only statement 1 is correct.
No. 14
Which of the following is subject to fringe benefit tax?
A B C D
Compensation income of managerial employees Yes No No Yes
Taxable fringe benefits of managerial employees Yes Yes Yes Yes
De minisis benefits of managerial employees Yes No Yes No
CHOICES
C
B
D
A
No. 15
There is no taxable income until such income is recognized. Taxable income is recognized when:
CHOICES
a. Transaction that is the source of income is consummated
b. Income has been actually received in money or its equivalent
c. Income has been received, either actually or constructively
d. Taxpayer fails to include the income in his income tax return
No. 16
Statement 1: Grossed-up monetary value is reflected in the books of accounts as fringe benefit expenses and fringe benefit tax expense.
Statement 2: Any amount not withheld by the employer on employee's salary is the liability of the employee.
CHOICES
a. Both statements are correct.
b. Both statements are incorrect.
c. Only statement 2 is correct.
d. Only statement 1 is correct.
No. 17
Which of the following is most likely to be subjected to income tax?
CHOICES
a. Income tax paid by the employer in behalf of the employee.
b. Fringe benefit required by the nature of or necessary to trade business or profession of the employer.
c. Those granted for the convenience of the employer.
d. De minimis benefits and other benefits.
No. 18
Which of the following statement is correct?
I. Fringe benefit is a form of pay which may be in the form of property, services, cash or cash equivalents to supplement a stated
pay for the performance of services under an employee-employer relationship
II. Fringe benefits subject to fringe benefit tax cover only those fringe benefits given or furnished to a managerial employee.
III. FBT is a final tax imposed on the employee withheld by the employer, computed based on the monetary value of the fringe benefit.
IV. FBT is an income tax. Accordingly, the one liable under the law to pay the fringe benefit tax is the employee.
V. Fringe benefits subject to FBT shall be included in the income tax return of the employee.
CHOICES
a. All of the statements
b. I, III and IV only
c. None of the statements
d. I and II only try lang
e. I, II and V only **
No. 19
Which of the following statements regarding grossed-up monetary value is correct?
I. The grossed-up monetary value of the fringe benefit is simply a figure meanth to represent the entire income earned by the employee
II. The grossed-up monetary value includes the net amount of money received, the net monetary value of any property received, and the
III. The grossed monetary value of the fringe beenfit is determined by dividing the monetary value of the fringe benefit by the grossed m
IV. The grossed-up monetary value of the benefit is generally the total allowable deduction of the employer from his gross income
CHOICES
a. I only
b. I and II only
c. I, II and III
d. All of the statements
No. 20
The amount of de minimis benefits conforming to the ceiling of de minimis benefits shall be:
I. Exempt from income tax only if employee is rank-and-file
II. Not be considered in determining the P90,000 ceiling of other benefits excluded from gross income under the Tax Code, as ame
CHOICES
a. I only
b. II only
c. Both I and II
d. Neither I nor II
No. 21
To spread the burden of taxation, the corresponding estimated tax is collected at once every payroll period so that at the end of the
taxable year, the amount of tax withheld will be equal or approximate to the actual tax for the year. This taxation system of
collection at source is based on what principle?
CHOICES
a. Theoretical justice
b. Due process of law
c. Fiscal adequacy
d. Administrative feasibility
No. 22
Reasonable business expenses which are paid for by the employer for foreign travel of his employee for the purpose of attending
business meetings or conventions shall not be treated as taxable fringe benefits, except:
CHOICES
a. 30% of the cost of first class airplaine ticket
b. Cost of economy and business class plane ticket
c. Inland travel expenses such as food, beverages and local transportation
d. Lodging cost amounting to an average of USD300 or less per day
No. 23
Which of the following statement is not correct?
A. Fringe benefit of a managerial employee is subject to final income tax
B. Fringe benefit tax is creditable tax
C. Fringe benefit tax rate varies with different taxpayers
D. Fringe benefit tax is an income tax
No. 24
Which of the following royalties earned in Malaysia is not subject to 10% final withholding tax?
CHOICES
a. Royalties fromc omputer software
b. Royalties from books
c. Royalties fom musical compositions
d. All of the above
No. 25
Statement 1: Representation and transportation allowance given regularly on a monthly basis are not taxable fringe benefits but
taxable as compensation income subject to basic tax.
Statement 2: Expenses in connection with attending business meeting or convention in the Philippines such as food, beverages,
and transportation are non-taxable benefits of the employee.
CHOICES
a. Only statement 1 is correct.
b. Only statement 2 is correct.
c. Both statements are correct.
d. Both statements are incorrect.
No. 26
No law granting any tax exemption shall be passed without the concurrence of -
CHOICES
a. 2/3 vote of all members off the Congress
b. Unanimous vote of all members of the Congress
c. Majority of all members of the Congress
d. 3/4 vote of all members of the Congress
No. 27
Which of the following statements is/are correct?
I. The fringe benefit tax is a final tax of the employer.
II. The grossed -up monetary value is the benefit expense of the employer.
III. Fringe benefit tax shall be treated as a final income tax on the employee that shall be withheld and paid by the employer on a
monthly basis.
IV. The liability of the employer is to withhold the corresponding income tax from the fringe benefit earned by the employee.
CHOICES
a. I and IV
b. I, III and IV
c. I and II
d. II and III
e. I and III
f. III and IV
g. I, II and IV
h. II and IV
No. 28
Which of the following statements is correct?
I. Beginning January 1, 2018 but prior to the effectivity of the CREATE Law, PCSo winning of not more than P10,000 received by
citizens, residents and nonresidents aliens engaged in trade or business are exempt from income tax
II. Beginning January 1, 2018 but prior to the effectivity of the CREATE LAW, PCSO winnings of more than P10,000 received by
citizens, residents and nonresident aliens engaged in trade or business are subject to 20% FWT
III. PCSO winnings of more than P10,000 received by nonresident aliens not engaged in trade or business are exempt from income
IV. PCSO winnings of more than P10,000 received by non resident aliens not engaged in trade or business are exempt from
income tax.
CHOICES:
a. I only
b. I and IV only
c. I and II only
d. All the statements are correct
No. 29
A domestic corporation provides fixed daily meal allowance to all its regular employee. The meal allowance is:
CHOICES
a. Subject to basic tax
b. Subject to fringe benefit tax if the recipient is a rank-and-file employee
c. Exempt from basic income tax
d. Subject to fringe benefit tax if the recipient is a managerial employee
No. 30
The basis or test of exemption of real properties owned by religious, or charitable entities from real property taxes is:
CHOICES
a. Location of the real property
b. Use of the real property
c. Ownership of the real property
d. Ownership or location of real property at the option of the government.
No. 31
Which of the following income derived from within the Philippines by a resident individual is not subject to the rates of Section 24(A)
CHOICES
a. Salary received by a managing partner of a general professional partnership.
b. A passive income in the for of a prize won in a raffle amounting to P8,000.
c. A gain from sale of a motor vehcile as another income of a taxpayer who is a compensation income earner.
d. A gain on sale of a real property for private use of the family of the taxpayer.
e. Items A and B
f. Items C and D
g. Items A, B and C
No. 32
Which of the following statements are incorrect?
a. Lotto winnings of a nonresident citizen is exempted under CREATE Act
b. To be subject to final tax, passive income must be from Philippine sources
c. Lotto winnings of an OFW in United States are exempt from income tax in Philippines not sure
d. An income which is subject to final tax is excluded from the computation of income subject to graduated tax rate
No. 33
On January 1, 2021, Andy purchased 1,000 bonds at P50 face value of Ayala Corporation, a domestic corporation. The bonds
were dated January 1, 2020 and mature on January 1, 2031 The bonds pay annual interest every December 31. Andy said the
investment directly to Benny on December 31, 2021, at P54 Which of the following statements is true?
CHOICES:
a. The gain on sale is subject to final withholding tax of 20%
b. The interest income from the investment is subject to final withholding tax of 5%
c. The interest income from the investment is subject to final withholding tax of 12%.
d. The gain on sale is subject to basic income tax
No. 34
The cost of educational assistance extended by an employer to the dependents of an employee shall be treated as taxable fringe benefits, unle
I. The education or study involved is directly connected with the parent's employer's business or profession
II. There is a written contract between the parents and the employer that the former is under obligation to remain in
the employ of the latter for a period of time they have mutually agreed upon.
III. The assistance was provided through a competitive scheme under the scholarship program of the employer
CHOICES
a. II and III
b. II only
c. I only
d. I and III
e. I and II
f. III only try
yees is a tax exempt benefit.
ees is a tax exempt benefit.
agerial employee.
y an employer in cash or in
anagerial employee. /
ary value of the fringe benefit. X
final
Attempt Attempt:
3,661,538.00 90462
376923 43077
538,462 try 91538
COMPUTATION: COMPUTATION:
Tax dec 6800000 Tax dec
Lower consideration 5800000
Monetary Value 1000000
Divide by 65%
GUMV 1538461.538 Monetary Value
x FBT tax rate 35% Divide by
Fringe benefit tax 538461.5385 GUMV
x FBT tax rate
Fringe benefit tax
Zonal Value 6500000
Lower consideration 5800000
Monetary Value 700000
Divide by 65%
GUMV 1076923.077
x FBT tax rate 35%
Fringe benefit tax 376923.0769
elta Corporation bought a condominium unit on installment for the use of its Delta Corporation bought a condominium unit on
utive. The acquisition cost inclusive of interest is P6,720,000. The FMV of property will be transferred to the executive. The
roperty per Tax Declaration is P6,800,000 while the zonal value is P6,720,000. The FMV of the property per Tax De
00,000. How much is the fringe benefit tax? value is P6,500,000. How much is the fringe ben
TE: INSTALLMENT FOR THE USE OF ITS EXECUTIVE *NOTE: INSTALLMENT AND THE OWNERSHIP
attempt
3661538
91538
try 3618462
MPUTATION: COMPUTATION:
6800000 Acquisition cost inclusive interest
5%
340000 Monetary Value
50% Divide by
170000 GUMV
65% x FBT tax rate
261538.4615 Fringe benefit tax
35%
e benefit tax 91538.46154
Corporation bought a condominium unit on installment and the ownership over the
3. Dexter Ramos, VP for Finance of HG Gro
erty will be transferred to the executive. The acquisition cost inclusive of interest is
20,000. The FMV of the property per Tax Declaration is P6,800,000 while the zonal for the taxable year 20213.
is P6,500,000. How much is the fringe benefit tax?
TE: INSTALLMENT AND THE OWNERSHIP IS TRANSFERRED Salaries at P75,000,000 per month
13th month pay
Gas allowance subj to liquidation
Allowances not subj to liquidation
Cash gift for 5 years in service
try Uniform allowance at P4,000 per sem
Medical allowance to dependents
Productivity incentive covered by a CBA
MPUTATION: Monetized unused vacation for 11 days
isition cost inclusive interest 6720000 Monetized unused sick leave for 4 days
100% Actual medical assistance
6720000
65%
10338461.54
35% REQUIREMENTS:
e benefit tax 3618461.538 How much is amount on exempt de minimis
How much is the amount de minimis and oth
How much is the monetary value of the fringe
How much is the total fringe benefit tax?
How much is the income tax payable of Dexte
SOLUTION
Salaries at P75,000,000 per month
13th month pay
Gas allowance subj to liquidation
Allowances not subj to liquidation
Cash gift for 5 years in service
Uniform allowance at P4,000 per sem
Medical allowance to dependents
Productivity incentive covered by a CBA
Monetized unused vacation for 11 days
Monetized unused sick leave for 4 days
Actual medical assistance
First
Excess
Income Tax Payable
Fringe
Gross
FBT
r Ramos, VP for Finance of HG Group Holdings Corporation, provided the following data
xable year 20213.
130,000.00
52,800.00
182,800.00
55,250.00
0.65
85,000.00
0.35
29,750.00 not sure - alliah
Omega corporation purchased a motor vehicle for the use of its executive. It was
registered under the name of the executive although it was agreed that it shall be
used partly for the benefit of the company. The cost of the vehicle P910,000. The
amount of fringe benefit tax is
CHOICES
0
318500
49000
490000
COMPUTATION:
Monetary Value 910000
Divide by 65%
GUMV 1400000
x FBT tax rate 35%
Fringe benefit tax 490000
Emanuel Andrada, Department Head of Municipal Treasury, provided the following
data for the taxable year:
During the taxable year, Emanuel pursues his Masters Degree in Public Administration
and was for the account of his employer. Total school fees for his education assistance
costs P117,000.
REQUIREMENTS
How much is the amount of exempt de minimis benefits? 94,600.00
How much is the amount of de minimis and other benefits subject to 93,900.00
basic tax?
How much is the monetary value of the fringe benefits? 169,000.00
How much is the total fringe benefit tax? 91,000.00
How much is the income tax payable of Emanuel? (58,200.00)
First 130,000.00
Excess 112,170.00
Less: CWT -300,370
Income Tax Paya (58,200.00)
Fringe 52,000.00
0.65
Gross 80,000.00
0.35
FBT 28,000.00
attempt: 4/6
4/6
Computation
1. Motor Vehicle
Monetary Value 45,500
Divide by 65%
GUMV 70000
x FBT rate 35%
Fringe benefit tax 24500
Fringe
1,080,000.00 2. Residential property 1040000
5%
50%
Monetary Value 26000
52,000.00 Divide by 65%
GUMV 40000
x FBT rate 35%
Fringe benefit tax 14000
3. Car 200000
4500000
52,000.00 1,080,000.00 AC 4700000
93,900.00 Monetary Value 940000
1,173,900.00 Divide by 65%
GUMV 1446153.846
x FBT rate 35%
Fringe benefit tax 506153.8462
OR
3. Down Payment
Add: Installment
Year 1 180000
not sure - alliah Year 2 180000
Year 3 180000
Acquisition cost
Monetary Value
Divide by
GUMV
x FBT rate
Fringe Benefit tax
OR
3. Down Payment
Add: Installment
Year 1 180000
Year 2 180000
Year 3 180000
Acquisition cost
Acquisition cost
inclusive interest
Monetary Value
Divide by
GUMV
x FBT rate
Fringe Benefit tax
Francis Dela Cruz, accounting manager of Modern Solutions Inc., provide
ceived by a managerial employee from his taxable year:
f. Fringe benefit tax 22,028 During the taxable year, Dela Cruz purchased a vehicle under the name of
36012 cost of P1,300,000.
REQUIREMENTS
How much is the amount of exempt de minimis benefits?
How much is the amount of de minimis and other benefits subject to basic ta
How much is the monetary value of the fringe benefit?
How much is the total fringe benefit tax?
How much is the income tax payable of Francis?
SOLUTION
Salaries at P120,000 per month
Allowances subject to liquidation
Allowances not subject to liquidation
Rice allowance at P3,000 per month
Christmas gift/bonus
13th month pay and mid-year bonus
Monetized unused sick leave for 5 days
Medical allowance to dependents
Actual medical benefits
Purchase of vehicle
TRY LANG
First 130,000.00
Excess 246,000.00
Less: CWT -397,150
Income Tax Payable (21,150.00)
200000
540000
740000
740000
65%
1138461.538
35%
398461.5385
200000
540000
740000
740000
12%
88800
740000
88800
651200
65%
1001846.154
35%
350646.1538
manager of Modern Solutions Inc., provided the following data for the
bt P1,440,000
- 50,000
fbt 60,000
2k per month exempt dm 36,000
ob 30,000
ob 240,000
exempt dm 27,500
exempt dm 3,000
exempt dm 10,000
ompensation income 397,150
60,000.00
24,000.00
30,000.00
240,000.00
27,500.00
3,000.00
10,000.00
1,300,000.00
64,500.00 270,000.00 1,360,000.00 1,440,000.00
(90,000.00) 65% 180,000.00
180,000.00 2,092,307.69 1,620,000.00
35%
732,307.69
250000
Computation:
CHOICES
a. P1,441,765
b. P1,000,000
c. P529,412
d. P1,615,385
Computation
Monetary value 3,000,000
GMVF 0.75
GMV 4,000,000.00
FBT rate 0.25
Fringe Benefit Tax 1,000,000.00
Adrian, a supervisory employee of Tierra de Paraiso Corp. borrowed P50,000
from the company payable in 4 months thru salary deduction. If the corporation is
charging 4% interest per annum on the loan, the fringe benefit tax expense is
Attempt:
26,923
COMPUTATION: di pa to sure
Interest at 12% (50000 x 12%) 6000
Interest at 4% (50000 x 4%) 2000
Difference (annual) 8000
1. Apartment rented by the company for P156,000 for a year and granted the same to be
used by the employee for free.
2. House and lot wherein ownership is transferred to the employee, FMV: P3,900,000;
Cost: P2,800,000.
3. Life insurance of employee and his dependent amounting to P10,700; Car insurance of
the employee amounting to P8,000; SSS Contribution to employee amounting to P5,000;
Health insurance for the family of the employee amounting to P6,000; and Group
Insurance for the employee and his family amounting to P7,500.
COMPUTATION:
1) Apartment (yr) 156000
50%
Monetary Value 78000
Divide by 65%
GUMV 120000
x FBT rate 35%
Fringe benefit tax 42000
Attempt:
To check:
Frances Corporation had the following journal entry on fringe benefit tax
Kape Puro Manufacturing Corporation opera
Economic Zone (a PEZA) registered econom
Fringe benefit expense P250,000 the conduct of audit and performance evalua
Fringe benefit tax expense 77,350 last for a period of 2-3 months. He was provi
Cash P250,000 duration of the audit in one of the prominent
value of the property is P32M while is fair ma
FBT withholding tax payable 77,350 Real Property Tax Declaration amounts to P
expense and fringe benefit tax expense, resp
Fringe benefit given to the employees are as follows:
P0; P0
Employees FB FBT P625,000; P294,118
Rank-and-file employees P29,000 None P800,000; P376,470
Managerial employees ? P27,300 P32,000,000; P15,058,824
Supervisory employees ? ?
Based on the above accounting entry and information, how much is the
fringe benefit given to supervisory employees?
Attempt:
41,650
22050
managerial supervisory
27,300 FBT 50,050
35% 35%
78,000 143,000
65% 65%
50,700 Fringe Benefit 92,950
To check:
40000
Computation:
Fringe benefit tax expense 17,500.00
Divided by 35%
50,000.00
Multiply by 65%
Fringe benefit expense 32,500.00
(managerial employees) In preparation for the 2021 year-end audit, Ramos was given a free housing f
to December, Monthly rental on the residence provided by HG Group is P16,2
First 130,000.00
Excess 34,800.00
Less: CWT
Income Tax Payable
Fringe 55,250.00
0.65
Gross 85,000.00
0.35
FBT 29,750.00
On January 1, 2018, Adel invested P1,000,0
Holdings Corporation, provided the following data for the name of a domestic corporation. The long-te
In need of cash, Adel pre_x0002_terminated
due in 2021
bt 900,000.00
ob 75,000.00 Answer:
- 60,000.00 10,000
fbt 55,250.00
ob 10,000.00
6k exemt dm 8,000.00
3k exempt dm 4,500.00
exempt dm 10,000.00
10 days exempt 27,500.00
exempt dm 10,000.00
10k exempt 25,000.00
(exempt ba sa
fbt kasi 2 mons
amos was given a free housing for the months of November lang?
e provided by HG Group is P16,250.
64,000.00
er benefits subject to basic t 16,000.00
55,250.00
29,750.00
55,250.00
10,000.00
2,000.00
1,500.00
2,500.00
15,000.00
106,000.00 55,250.00 900,000.00
(90,000.00) 16,000.00
16,000.00 916,000.00
REQUIREMENTS:
Compute for the CGT of Zyrah
Compute for the FWT of Zyrah
Compute for the income tax payable of Zyrah
Try compu
Gross Income from business, net P24,000 CWT 884,000.00
Business Expenses (20% nondeductible) 336,000.00
548,000.00
Taxable Income 548,000.00
First 400k 30000
Excess 29600
Total 59600 w/o CWT
Less: CWT 24000
Tax due and payable 35600
FWT RA
Interest income from long term
deposit in BDO, pre-terminated
on the 4th year 42,000.00 5% 2,100.00
Royalty on mining company, net 76000 20% 15,200.00
Prize won in raffle draw 25,000.00 20% 5,000.00
Stock dividends on Domestic
corporation 12,000.00 10% 1,200.00
23,500.00
CGT
Ara, a resident citizen, provided the following data for the current taxable year:
*in peso
Gross income from business (gross of P12,000 CWT) 700,000
Business expenses 300,000
Royalty from publication, US 78,000
Royalty from musical composition, Philippines 40,000
Prize won in a raffle draw 7,500
Share in the net income of joint venture, net of tax 14,850
Interest income from a long-term deposit in treasury bills, pre- 12,000
terminated on the 4th year
Gain on direct sale to buyer of shares of stock of a domestic 70,000
corporation held as capital asset
Loss on sale of land in Makati held as capital asset with cost 500,000
P1,500,000, Zonal Value: P1,200,000
REQUIREMENTS:
Compute for the CGT of Ara
Compute for the FWT of Ara
Compute for the income tax payable of Ara
REQUIREMENTS:
Compute for the capital gains tax of Aron
Compute for the final withholding tax of Aron
Compute for the income tax payable of Aron
COMPUTATION:
1) CGT of Aron
On March 21, Johnson sold the following stock of a foreign corporation which he
y a Supervisor at Century bought for investment purposes:
Listed and Traded - Selling Price, P250,000; Cost: P118,000
* in peso Not Listed and Traded - Selling Price: P140,000; Cost: P80,000
2,350,000.00
155,000.00 How much is the capital gains tax?
45,000.00 CHOICES
712,500.00 P0
3,800,000.00 P6000
2,000,000.00 P12000
1,200,000.00 P3000
24,000.00
50,000.00
60,000.00
500,000.00
85,000.00
800,000.00
60,000.00
eign corporation which he
Anj sold 10,000 shares in Axtra Corporation, a closely-held domestic corporation,
on June 30, 2021 for P1,250,000. The shares were acquired by Anj a year ago for
P1,000,000. The book value per share based on 2020 audited financial
statements of the Company was P200. How much is the capital gains tax?
CHOICES
P20,000
P30,000
P0
P37,500
Computation:
Selling price 1250000
Cost 1000000
Capital gain 250000
CGT rate 15%
CGT 37500
On January 1, 2018, Adel invested P1,000,000 to BDO's 5-year long-term deposit
held domestic corporation, for and in the name of a domestic corporation. The long-term deposit pays 10%
quired by Anj a year ago for annual interest every January 1. In need of cash, Adel pre-terminated his
audited financial investment on July 1, 2021. How much is the tax due in 2021?
he capital gains tax?
CHOICES
P6,000
P12,000
P10,000
P42,000 try
COMPUTATION:
1,000,000 x 10% x 3.5 x 12% 42000
REQUIREMENTS:
Compute for the CGT of Jona
Compute for the FWT of Jona
Compute for the income tax payable assuming Jona opted to be taxed at 8%