Tolentino, John Carlo C.

BSMA-2A
BUSINESS TAX

Multiple Choices – Problems: Part 2

1. B. P 9,000
P 300,000 x 3% = P 9,000

2. A. P 0
The transaction is not subject to percentage tax as its purpose is to transport mails which are vatable
or subject to VAT. Also, it is mentioned it is a mail courier company and not indicated whether non-VAT
taxpayer therefore, the assumption is it is not subject to percentage tax but to VAT.

3. B. P 150,000
P 5,000,000 x 3% = P 150,000

4. A. P 0
The company is a domestic airliner which indicates that the transaction is vatable or subject to VAT
and not to percentage tax.

5. B. P 54,000
P 1,800,000 x 3% = P 54,000

6. B. P 51,000
P 1,700,000 X 3% = P 51,000

7. B. P 24,000
1,200,000 x 2% = P 24,000

8. B. P 110,000
P 1,200,000 x 5% = P 60,000
P 800,000 x 5% = P 40,000
P 600,000 x 1% = P 6,000
P 400,000 x 1% = P 4,000
P 110,000

9. C. P 180,000
P 2,000,000 x 5% = P 100,000
P 1,000,000 x 1% = P 10,000
P 800,000 x 7% = P 56,000
P 200,000 x 7% = P 14,000
P 180,000

10. B. P 40,000
P 800,000 x 5% = P 40,000

11. D. P 250,000
P 2,500,000 x 10% = P 250,000
12. D. P 133,200
P 200,000
P 240,000
P 300,000
P 740,000 x 18% = P 133,200

13. A. P 0
The issuing shares are mentioned as additional therefore, it must be treated as follow-through
offering which is no longer subject to IPO tax since this tax is only applicable on the initial listing.

14. C. P 4,584
P 40,000 – (20 x 100) = P 38,000 x 10% = P 3,800
P 20,000 – (2 x 200) = P 19,600 x 4% = P 784
P 4,584

15. C. 1,400,000
P 1,000,000 x 100/40 = P 2,500,000
P 700,000/P 2,500,000 x 100% = 28%, which means subject to 32% IPO tax.
P 700,000 x P100 x 2% = P 1,400,000

16. A. P 162,000
P 300,000 x 90 x .6 x .01 = P 162,000

17. C. P 120,000
P 2,000,000/P 6,000,000 x 100% = 33.33%, which means it is subject to 2% IPO tax.
P 2,000,000 x P 3 x 2% = P 120,000

18. D. P 4,500
(P 142,500/95%) x 3% = P 4,500

19. D. P 6,000
200,000 x 3% = P 6,000