Stratax Quiz Compilation q1-q3

 Question 1
2 out of 2 points
Claims for tax credit shall be given due course only when it is shown that the income payment
has been declared as part of the gross income and the fact of withholding is established by a
copy of the withholding tax statement duly issued by the payor to the payee showing the
amount paid and the amount of tax withheld therefrom
Selected Answer:
True
Answers:
True
False
 Question 2
2 out of 2 points
The Summary List of Sales/Purchases are required to be filed:
Selected Answer:

Quarterly
Answers: Monthly

Quarterly
Annually
None of the
choices
 Question 3
0 out of 2 points
Mr. X earned gross sales of P1,000,000 from his own business and costs and expenses
amounting to P200,000. For the year 2022, he opted to avail of the 40% Optional Standard
Deduction. How much will be his taxable income?
Selected Answer:

P480,000
Answers: P800,000
P680,000

P600,000
P480,000
 Question 4
2 out of 2 points
The 2nd quarter Income Tax Return of a corporation under the calendar year basis of
accounting is due for filing when?
Selected Answer:

August 29
Answers: June 30

August 29
August 30
August 31
 Question 5
2 out of 2 points
The rate of the Optional Standard Deduction is:
Selected Answer:

40%
Answers: 10%
20%
30%

40%
 Question 6
2 out of 2 points
In this type of income, itemized deductions or the optional standard deduction may be claimed:
Selected Answer:

Income from the Practice of
Profession
Answers: Compensation Income
Passive Income

Income from the Practice of
Profession
All of the choices
 Question 7
2 out of 2 points
The share of Partners of a General Professional Partnership in the GPPâ s distributable income
may be subject to the withholding tax rate of:
Selected Answer:

10 or 15%
Answers: 1 or 2%
5 or 10%

10 or 15%
15 or 20%
 Question 8
2 out of 2 points
The rate of withholding tax applicable to rental payments:
Selected Answer:

5%
Answers: 1%
2%

5%
10%
 Question 9
2 out of 2 points
The amount of creditable tax withheld shall be allowed as a tax credit against the income tax
liability of the payee in the quarter of the taxable year in which income was earned or received
Selected Answer:
True
Answers:
True
False
 Question 10
2 out of 2 points
Which of the following are exempt from income tax and thus, exempt from the withholding tax:
Selected Answer:

All of the choices
Answers: HLURB-registered corporations engaged in socialized housing
PEZA/BOI-registered enterprises under the Income Tax Holiday regime

Cooperatives upon presentation of proof of exemption

All of the choices
 Question 11
2 out of 2 points
The proper supporting document for withholding VAT on services rendered non-residents:
Selected Answer:

BIR Form No. 1600
Answers: VAT Official Receipt
VAT Invoice

BIR Form No. 1600
Statement of Account
 Question 12
2 out of 2 points
A purchase of goods must be supported by a VAT Official Receipt
Selected Answer:
False
Answers: True
False
 Question 13
2 out of 2 points
Failure to secure a tax exemption ruling will operate to divest the qualified entities of their tax
exemption.
Selected Answer:
False
Answers: True
False
 Question 14
2 out of 2 points
The following are constituted as withholding agents, except:
Selected Answer:

An individual whether engaged in business or not
Answers: A juridical person, whether engaged in business or not

An individual whether engaged in business or not
All government offices including GOCCs as well as Local Government

Units
None of the choices is an exception
 Question 15
2 out of 2 points
Installment recognition of income for sale of personal property will be allowed if the price:
Selected Answer:

Exceeds P1,000
Answers: Is at least P1,000

Exceeds P1,000
Is at least P5,000
Exceeds P5,000
 Question 16
2 out of 2 points
The following are characteristics of the Philippine Income Tax for corporations, except:
Selected Answer:

Progressive as to rate
Answers: National tax as to taxing

authority
General tax as to purpose
Excise as to subject matter

Progressive as to rate
 Question 17
2 out of 2 points
Mr. X, a car dealer, sold a vehicle amounting to P1,000,000 payable in installments. How much
income should be recognized by Mr. X in the year of sale?
Selected Answer:

The gross profit pertaining to the installment payments made
Answers: The entire gross profit for the sale

The gross profit pertaining to the installment payments made
None, only after the cost has been covered can income be
recognized
The entire selling price of the car
 Question 18
2 out of 2 points
The Tax Exemption Ruling of the which of the following is valid until it is revoked as opposed to
the usual 3 year effectivity?
Selected Answer:

Non-stock, non-profit educational institution
Answers: Civic league or organization
Cemetery Company owned and operated exclusively for the benefit of its
members
Mutual savings bank and cooperative

Non-stock, non-profit educational institution
 Question 19
2 out of 2 points
The income of the following are not subject to withholding taxes, except:
Selected Answer:

Answers: National Government
Government Instrumentality
General Professional Partnership

 Question 20
2 out of 2 points
For the taxable year 2022, Mr. X earned P500,000 from his own profession and incurred
expenses of P100,000. The property he owns with his wife, Mrs. X, earned P300,000 during the
same taxable year, while the sale of their conjugal vehicle resulted in a gain of P100,000. How
much is Mr. Xâ s taxable income for the year 2022?
Selected Answer:

P600,000
Answers: P400,000
P550,000

P600,000
P700,000
 Question 21
2 out of 2 points
X Corporation follows the calendar year for its accounting period. It applied for, and the BIR
approved, a change of accounting period to fiscal year ending June 30. For this purpose,
Selected

Answer:
A short-term return will be prepared from January 1 to June 30
Answers: No short-term return will be prepared.
A short-term return will be prepared from July 1 to December 31

A short-term return will be prepared from January 1 to June 30
A short-term return will be prepared from December 31 to December 30 of

the following year
 Question 22
2 out of 2 points
The Annual Income Tax Return of an individual engaged in the practice of his profession is the
BIR Form No. ____ to be filed not later than ___________.
Selected Answer:

1701; April 15
Answers: 1700; April 15

1701; April 15
1700; 15 days of the fourth month following the close of the taxable year
1701; 15 days of the fourth month following the close of the taxable year
 Question 23
2 out of 2 points
In order for the exemption to attach, no part of the income of the institution must inure to the
benefit of any member or specific person. The following constitutes â inurement,â except:
Selected Answer:

Answers: Payment of compensation to trustees or organizers
Payment of exorbitant compensation to employees
Donation to any person or entity whose purpose/s is not similar to its own

 Question 24
2 out of 2 points
In domestic purchases of service, the proper supporting document is:
Selected Answer:

VAT Official Receipt
Answers: VAT Invoice

VAT Official Receipt
BIR Form No. 1600
Import Entry Declaration and Bureau of Customs OR
 Question 25
2 out of 2 points
The quarterly VAT return is ______ and should be filed not later than _______:
Selected Answer:

BIR Form No. 2550Q; 25th day following the close of the quarter
Answers: BIR Form No. 2551Q; 20th day following the close of the quarter

 Question 26
0 out of 2 points
Installment recognition of income will be allowed in the following cases, except:
Selected Answer:

Sale of real property classified as ordinary asset
Answers: Sale of personal property by dealers
Sale of real property classified as ordinary asset
Sale of real property classified as capital asset

 Question 27
2 out of 2 points
On November 2, 2022, XYZ Company, a real estate developer, sold a condominium unit to Mr. A
for P10,000,000, where Mr. A is required to pay a downpayment of P1,000,000 and monthly
installment of P250,000, the first installment of which is due on November 30, 2022. How much
will be the sales/revenue to be reported in 2022?
Selected Answer:

P1,500,000
Answers: P10,000,000

P1,500,000
P1,250,000
P1,000,000
 Question 28
2 out of 2 points
The monthly remittance form used for the expanded withholding tax is:
Selected Answer:

BIR Form No. 0619-E
Answers:

BIR Form No. 0619-E
BIR Form No. 0619-F
BIR Form No. 1601EQ
BIR Form No. 1601FQ
 Question 29
2 out of 2 points
The timing of withholding shall be:
Selected

Answer:
The time the income payment becomes payable, or the time the expense/asset
is recorded or accrued, or the time of payment whichever is earliest
Answers: The time of payment
The time the income payment becomes payable or the time of payment
whichever is earlier
The time the expense/asset is recorded or accrued or the time of payment

whichever is earlier

The time the income payment becomes payable, or the time the expense/asset
is recorded or accrued, or the time of payment whichever is earliest
 Question 30
2 out of 2 points
This type of withholding tax constitutes the full and final settlement of the tax due on the
income item:
Selected Answer:

Final Withholding Tax
Answers: Withholding Tax on Compensation

Final Withholding Tax
Creditable Withholding Tax
Expanded Withholding Tax
 Question 31
2 out of 2 points
On December 31, 2022, Jessica Day rented a room in the apartment of Nick Miller for a monthly
rental of P10,000. She paid 3 months deposit and 2 months advance rental. How much is the
income to be reported by Nick Miller in 2022, if any?
Selected Answer:

P20,000
Answers: P50,000
P40,000

P20,000
P0
 Question 32
2 out of 2 points
The following are nature of the withholding tax, except:
Selected Answer:

It is a different kind of income tax
Answers:

It is a different kind of income tax
Method or tool for collection of taxes
Considered as trust funds until they are remitted to the government
 Question 33
2 out of 2 points
Failure of the taxpayer to file a required information return shall be subject to the penalty of:
Selected

Answer:
P1,000 for each information return not submitted but the aggregate cannot
exceed P25,000 in a taxable year
Answers: P1,000 for each information return not submitted
P5,000 for each information return not submitted

 Question 34
2 out of 2 points
A consolidated alphabetical list of withholding agents from whom income was earned or
received and subjected to withholding tax to be submitted by the payee- recipient of income.
Selected

Answer:
Summary Alphabetical List of Withholding Agents of Income Payments
Subjected to Creditable Withholding Tax
Answers: Quarterly Alphabetical List of Payees

Summary Alphabetical List of Withholding Agents of Income Payments Not

Subjected to Final Withholding Tax
 Question 35
2 out of 2 points
ABC Company purchased goods from XYZ Company and withheld 1% on the said purchase. ABC
Company is then required to issue BIR Form No. ___ as proof of withholding to XYZ Company:
Selected Answer:

2307
Answers: 2306

2307
2316
None of the
choices
 Question 36
2 out of 2 points
Mr. X purchased goods from ABC Corporation on March 15, 2022. The same is payable after 30
days, or April 15, 2022. The goods were delivered on March 28, 2022, and were recorded as
purchases in the books of Mr. X on March 31, 2022. Mr. X then paid for the goods on April 30,
2022. When should the withholding tax be recorded or recognized?
Selected Answer:

March 31, 2021
Answers: March 28, 2021

March 31, 2021
April 15, 2021
April 30, 2021
 Question 37
2 out of 2 points
The installment payment of income tax for individuals shall be allowed if the tax due is in excess
of:
Selected Answer:

P2,000
Answers: P1,000

P2,000
P5,000
P10,000
 Question 38
2 out of 2 points
Which of the following may not fall within the category of â professionalsâ for purposes of
income tax?
Selected Answer:

None of the
choices
Answers: CPAs
Artists
Lawyers

None of the
choices
 Question 39
2 out of 2 points
X Company retained the services of ABC and Co, CPAs, for an annual retainer fee of P1,000,000.
For the services rendered in 2021, ABC and Co., CPAs failed to provide the bill until January 15,
2022. X Company then paid for the services on January 31, 2022. X Company claimed the
retainer fees as expenses in 2022 which the BIR eventually disallowed on the ground that the
services were rendered in 2021. X Company, on the other hand, argued that the amount was
not yet determinable in 2021 since the bill was received only on Jan. 15, 2022. In this case,
Selected

Answer:
X Company should have claimed the expenses in 2021 since the amount can
be reasonably determined already
Answers: X Company can rightfully claim the expenses in 2022 when the expense was
paid

X Company should have claimed the expenses in 2021 since the amount can
be reasonably determined already
X Company can claim the expense either in 2021 or 2022 as a management

prerogative
X Company can rightfully claim the expenses in 2022 since this is when the
amount of expense became certain
 Question 40
2 out of 2 points
In case of non-withholding on a particular expense item:
Selected

Answer:
The taxpayer may still claim the expense as a deduction provided the
withholding tax is paid prior to or during the audit
Answers: Shall subject the taxpayer only to administrative liabilities
The taxpayer may not claim as a deduction the expense not subjected to
withholding
withholding tax is paid prior to the audit

withholding tax is paid prior to or during the audit
 Question 41
2 out of 2 points
Income payments to certain contractors shall be subject to what rate of withholding tax?
Selected Answer:

2%
Answers: 1%

2%
5%
10%
 Question 42
2 out of 2 points
If an individual recipient of professional fees have sales/receipts not exceeding P3,000,000 and
such fact is provided in a sworn certification, signifying as well his intention to avail of the 8%
flat rate of income tax, submitted to the income payor together with his/her certificate of
registration, the applicable withholding tax shall be:
Selected Answer:

5%
Answers: 2%

5%
10%
15%
 Question 43
2 out of 2 points
The basis of computing Optional Standard Deduction for corporations is:
Selected Answer:

Gross Income
Answers: Gross Sales/Receipts

Gross Income
Taxable Income
None of the choices
 Question 44
2 out of 2 points
The Quarterly Alphabetical List of Payees or the QAP for income payments subjected to the
expanded withholding tax shall be filed together with the:
Selected Answer:

BIR Form No. 1601EQ
Answers: BIR Form No. 0619-E
BIR Form No. 0619-F

BIR Form No. 1601EQ
BIR Form No. 1601FQ
 Question 45
2 out of 2 points
The following are information required to be indicated in the supporting document for VAT
purposes, except:
Selected

Answer:
Answers: That the seller is a VAT registered taxpayer together with the Tax
Identification Number
The total amount to be paid and that the same is inclusive of VAT
The amount of VAT separately shown

 Question 46
2 out of 2 points
Under this accounting method, expenses and income are recognized when they are incurred or
earned, respectively, not when paid or received.
Selected Answer:

Accrual Method
Answers:

Accrual Method
Cash Method
Both Accrual and Cash Method
Neither Accrual nor Cash Method
 Question 47
2 out of 2 points
In case the EWT credits exceed the income tax due, the taxpayer may:
Selected

Answer:
Both choices
Answers: File for a tax credit certificate or refund of the excess credits
Carry-over and apply the excess credits against the income tax liability of the
succeeding quarters of the succeeding taxable years

Both choices
Neither of the choices
 Question 48
2 out of 2 points
LR, the lessor, entered into a contract of lease with LEE, the lessee for a monthly rental payment
of P100,000, exclusive of VAT, subject to 5% withholding tax and the 12% VAT. For purposes of
determining the correct amount of withholding tax, what will be the basis?
Selected Answer:

P100,000
Answers: P112,000
P105,000

P100,000
P88,000
 Question 49
2 out of 2 points
Withholding agents with income payments to exempt entities who failed to secure a ruling shall
be required to subject the income payment to withholding taxes.
Selected Answer:
True
Answers:
True
False
 Question 50
2 out of 2 points
These are income generated by assets without any active conduct or pursuit of business or
trade.
Selected Answer:

Passive Income
Answers: Compensation Income
Business Income

Passive Income
Gain from Disposition of Assets
 Question 1
2 out of 2 points
This refers to exemptions granted by the Constitution, statutes, treaties, franchises or similar
legislative acts.
Selected Answer:

Express exemptions
Answers:

Express exemptions
Implied exemptions
Constitutional exemptions
Contractual exemptions
 Question 2
2 out of 2 points
The Taxpayer Identification Number of an individual will automatically extend to his/her Estate
at the moment of death.
Selected Answer:
False
Answers: True
False
 Question 3
2 out of 2 points
An employee who is at the same time engaged in business must secure a secondary Tax
Identification Number with a proper branch code.
Selected Answer:
False
Answers: True
False
 Question 4
2 out of 2 points
Deductions from income tax purposes partake of the nature of tax exemptions, therefore
should also be construed liberally in favor of the government.
Selected Answer:
True
Answers:
True
False
 Question 5
2 out of 2 points
The following persons are required to register as a VAT person, except:
Selected

Answer:
Any person in the course of trade or business, imports goods from suppliers
outside the Philippines
Answers: Any person who, in the course of trade or business, sells, barters or exchanges
goods or properties or engages in the sale or exchange of services whose gross
sales or receipts for the past 12 months (other than exempt transactions) have
exceeded P3,000,000.00
Any person who, in the course of trade or business, sells, barters or exchanges
goods or properties or engages in the sale or exchange of services and there are
reasonable grounds to believe that his gross sales or receipts for the next 12
months (other than those exempt transactions) will exceed P3,000,000.00

Any person in the course of trade or business, imports goods from suppliers
outside the Philippines
None of the choices
 Question 6
2 out of 2 points
Individuals earning purely compensation income, whether local or alien employee, must
register as a taxpayer with the Bureau of Internal Revenue:
Selected Answer:

Within ten (10) days from the date of employment.
Answers:

Within ten (10) days from the date of employment.
Upon reaching the age of majority.
For alien employees, upon approval of his/her alien employment

permit.
All of the choices.
 Question 7
2 out of 2 points
Tax laws must be clear and concise, and capable of effective and efficient enforcement. This
refers to which principle of a tax sound system?
Selected Answer:

Administrative feasibility
Answers: Equality or theoretical justice
Fiscal adequacy

Rule of apportionment
 Question 8
2 out of 2 points
The following taxpayers are required to secure a Certificate of Registration from the Bureau of
Internal Revenue, except:
Selected Answer:

Purely compensation income earners
Answers: Non-taxable Corporations
Partnerships

Purely compensation income earners
Self-employed professional
 Question 9
0 out of 2 points
For business taxpayers, submission of a Mayorâ s Permit (or duly received Application for
Mayorâ s Business Permit, if the former is still in process with the LGU) prior to registration with
the Bureau of Internal Revenue is mandatory.
Selected Answer:
True
Answers: True
False
 Question 10
2 out of 2 points
The following are the nature of taxation, except:
Selected Answer:

Subject to the approval of the people
Answers: Inherent and sovereignty
Essentially a legislative function
Subject to inherent and constitutional

limitations

Subject to the approval of the people
 Question 11
2 out of 2 points
The following taxpayers are required to pay the annual registration fee upon registration and
on or before January 31 of every year thereafter, except:
Selected Answer:

One-time taxpayers
Answers: Self-employed professional

Non-resident alien engaged in trade or
business
Corporations and partnerships

One-time taxpayers
 Question 12
2 out of 2 points
BIR Forms 1901, 1902, 1903, 1904, and 1905 are generally used by taxpayers, depending on
their classification, for their primary registration with the Bureau of Internal Revenue.
Selected Answer:
False
Answers: True
False
 Question 13
2 out of 2 points
Minors are not required to register with the Bureau of Internal Revenue and secure a Taxpayer
Identification Number, unless they are already earning.
Selected Answer:
True
Answers:
True
False
 Question 14
2 out of 2 points
It is a tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs
and beneficiaries at the time of death and on certain transfers which are made by law as
equivalent to testamentary disposition.
Selected Answer:

Estate tax
Answers: Local transfer tax

Estate tax
Donorâ s tax
Death tax
 Question 15
2 out of 2 points
This refers to a grant of general reprieve to tax evaders who wish to come clean by giving them
an opportunity to straighten out their records.
Selected Answer:

Amnesty
Answers: Compromise
Abatement

Amnesty
Pardon
 Question 16
2 out of 2 points
Income tax is
Selected Answer:

A tax on the yearly profits arising from property, professionals, trade and
offices
Answers: An excise tax directly imposed on the person earning the income
A tax levied upon the transfer of property by succession mortis causa
A tax levied upon the transfer or property by succession inter vivos

A tax on the yearly profits arising from property, professionals, trade and
offices
 Question 17
2 out of 2 points
Employees, ONETT taxpayers, and/or persons who have secured a TIN under EO 98, series of
1998 with the BIR shall not be issued a COR.
Selected Answer:
True
Answers:
True
False
 Question 18
2 out of 2 points
Double taxation may be eliminated through the following modes, except:
Selected Answer:

Tax refund
Answers: Tax deduction

Tax credit
Double tax agreements

Tax refund
 Question 19
2 out of 2 points
Double taxation in the broad sense is prohibited for it violates the equal protection clause of
the constitution.
Selected Answer:
False
Answers: True
False
 Question 20
2 out of 2 points
One-time taxpayer involving a sale of real property transaction must register with the Revenue
District Office:
Selected Answer:

having jurisdiction where the property is located
Answers: having jurisdiction over the residence of the seller
having jurisdiction over the residence of the buyer

having jurisdiction where the property is located
any RDO as long as a Taxpayer Identification Number is secured
 Question 21
2 out of 2 points
In this form of escape from taxation, the burden of payment is transferred from the statutory
taxpayer to another without violating the law.
Selected Answer:

Shifting
Answers: Capitalization
Transformation

Shifting
Compromise
 Question 22
2 out of 2 points
Business taxpayers shall register each type of internal revenue tax for which he/it is obligated to
file a return or pay taxes due thereon, and he/it shall not be liable for any internal revenue tax
that is not part of his/its registered tax types.
Selected Answer:
False
Answers: True
False
 Question 23
2 out of 2 points
This refers to the use of a taxpayer of illegal or fraudulent means to defeat or lessen the
payment of tax.
Selected Answer:

Tax dodging
Answers: Tax exemption
Tax avoidance
Tax shifting

Tax dodging
 Question 24
2 out of 2 points
It is a tax on a donation or gift, and is imposed on the gratuitous transfer of property between
two or more persons who are living at the time of the transfer.
Selected Answer:

Donorâ s tax
Answers: Local transfer tax
Estate tax

Donorâ s tax
Income tax
 Question 25
2 out of 2 points
Tax laws must take into consideration the taxpayerâ s ability to pay. Non-observance of this
principle of a sound tax system is a violation of the Constitution.
Selected Answer:

Equality or theoretical justice
Answers:

Equality or theoretical justice
Fiscal adequacy
 Question 26
2 out of 2 points
It has reference to all wealth that flows into the taxpayer which includes return of capital.
Selected Answer:

Receipts
Answers: Capital
Revenue

Receipts
Income
 Question 27
2 out of 2 points
Double taxation means taxing the same person for the same tax period and the same activity
twice, by different taxing authorities within the same jurisdiction.
Selected Answer:
False
Answers: True
False
 Question 28
2 out of 2 points
One-time taxpayer involving a donation must register with the Revenue District Office:
Selected Answer:

having jurisdiction over the residence of the donor
Answers:

having jurisdiction over the residence of the donor
having jurisdiction over the residence of the donee
having jurisdiction where the property donated is located
any RDO as long as a Taxpayer Identification Number is secured
 Question 29
2 out of 2 points
It is a business tax imposed and collected from the seller in the course of trade or business on
every sale of properties (real or personal) lease of goods or properties (real or personal) or
vendors of services.
Selected Answer:

Value-added tax
Answers: Import duties

Value-added tax
Excise tax
Percentage tax
 Question 30
2 out of 2 points
Who among the following individual taxpayers is taxable on income from within and without
the Philippines:
Selected

Answer:
Juan, a Filipino, who was sent by his employer to the United States for 5
months
Answers: Amber, native of Bacolod, working as overseas contract worker in Dubai
Tracy, a resident of Manila and citizen of Australia who has been working in the
Philippines for the past 10 years
Manual, a resident and citizen of Puerto Rico, sent to the Philippines as an

employee of a local brewery for 5 months

Juan, a Filipino, who was sent by his employer to the United States for 5
months
 Question 31
2 out of 2 points
Which of the following statements is incorrect?
Selected

Answer:
Taxes are the revenues raised in the exercise of the police power of the State.
Answers:

Taxes are the revenues raised in the exercise of the police power of the State.
One of the special characteristics of tax is it is unlimited in amount.
The three fundamental powers of the State are inherent in the state and may
be exercised without the need of any constitutional grant.
All of the answers.
 Question 32
2 out of 2 points
This sets out the respective rights to tax of the state of source (situs) and the state of residence
with regard to certain cases, an exclusive right to tax is conferred on one of the contracting
states:
Selected Answer:

Tax treaty
Answers:

Tax treaty
Tax convention
Trade agreement
None of the
choices
 Question 33
2 out of 2 points
Corporations, companies, partnerships, or persons whose gross annual sales, earnings,
receipts, or output exceed P1,500,000.00 shall have their books of accounts audited and
examined yearly by independent Certified Public Accountants.
Selected Answer:
False
Answers: True
False
 Question 34
2 out of 2 points
Franchise grantees of radio and television broadcasting, whose gross annual receipt for the
preceding calendar year exceeded P10,000,000.00, shall register as VAT taxpayer within thirty
(30) days from the end of the taxable year.
Selected Answer:
True
Answers:
True
False
 Question 35
2 out of 2 points
This refers to a tax withheld that constitutes the full and final payment of the Income Tax due
from the payee on a particular income.
Selected Answer:

Final withholding tax
Answers: Withholding tax on

compensation
Withholding value-added tax
Expanded withholding tax

Final withholding tax
 Question 36
2 out of 2 points
Which of the following is not a source of tax laws:
Selected Answer:

Local Tax Resolutions
Answers:

Local Tax Resolutions
Special Laws
National Internal Revenue

Code
Decisions of the Supreme

Court
 Question 37
2 out of 2 points
In every case of doubt, tax statutes are construed
Selected Answer:

Strictly against the government and liberally in favor of the taxpayer
Answers: Strictly against the government and the taxpayer
Liberally in favor of the government and the taxpayer

Strictly against the government and liberally in favor of the taxpayer
Liberally in favor of the government and strictly against the

taxpayer
 Question 38
2 out of 2 points
The approved Authority to Print (ATP) principal and supplementary invoices shall be valid only
upon full usage of the inclusive serial numbers of principal and supplementary receipts/invoices
reflected in such ATP or five (5) years from issuance of the same, whichever comes first.
Selected Answer:
True
Answers:
True
False
 Question 39
2 out of 2 points
Which of the following is not a principle of a sound tax system?
Selected

Answer:
It is generally payable in money
Answers: It should be capable of being effectively enforced
It should consider the taxpayerâ s ability to pay

It is generally payable in money
The sources of revenue must be sufficient to meet the government

expenditures and other public needs
 Question 40
2 out of 2 points
Tax credit differs from a tax duction, in that a credit reduces taxable income while a deduction
reduces tax liability.
Selected Answer:
False
Answers: True
False
 Question 41
2 out of 2 points
The source of revenue should be sufficient to meet the demands of public expenditures. This
refers to which principle of a tax sound system?
Selected Answer:

Fiscal adequacy
Answers: Equality or theoretical justice

Fiscal adequacy
 Question 42
2 out of 2 points
It is a business tax imposed on persons or entities who sell or lease goods, properties or
services in the course of trade or business whose gross annual sales or receipts do not exceed â
±3,000,000.00.
Selected Answer:

Percentage tax
Answers:

Percentage tax
Value-Added Tax
Income tax
Expanded Withholding Tax
 Question 43
2 out of 2 points
Nonresident foreign corporations and nonresident aliens not engaged in trade or business
receiving income from the Philippines subject to final withholding tax need not register with the
Bureau of Internal Revenue since the tax withheld from the income they received already
constitute the full and final payment of the income tax on the particular income subjected to
final withholding tax.
Selected Answer:
False
Answers: True
False
 Question 44
2 out of 2 points
It is a tax on the production, sale or consumption of a commodity in a country.
Selected Answer:

Excise tax
Answers: Import duties
Value-added tax

Excise tax
Percentage tax
 Question 45
2 out of 2 points
This refers to the exploitation by the taxpayer of legally permissible alternative tax rates or
methods of assessing taxable property or income, in order to avoid or reduce tax liability.
Selected Answer:

Tax avoidance
Answers: Tax evasion

Tax avoidance
Tax shifting
Tax dodging
 Question 46
2 out of 2 points
The tax imposed on the gains presumed to have been realized by the seller from the sale,
exchange, or other disposition of capital assets is referred to as:
Selected Answer:

Capital gains tax
Answers: Income tax
Excise tax

Capital gains tax
Estate tax
 Question 47
2 out of 2 points
Every person subject to any national internal revenue tax is required to register with the BIR
and secure a Taxpayer Identification Number.
Selected Answer:
True
Answers:
True
False
 Question 48
2 out of 2 points
It is a tax on documents, instruments, loan agreements and papers evidencing the acceptance,
assignment, sale or transfer of an obligation, rights, or property incident thereto.
Selected Answer:

Documentary stamp tax
Answers: Donorâ s tax

Documentary stamp tax
Withholding tax
Negotiable instruments tax
 Question 49
2 out of 2 points
It is a tax on all yearly profits arising from property, profession, trades or offices or as a tax on a
personâ s income, emoluments, profits and the like
Selected Answer:

Income tax
Answers:

Income tax
Value-added tax
Excise tax
Percentage tax
 Question 50
2 out of 2 points
Taxpayers may maintain its books of accounts in any of the following manner:
Selected Answer:

All of the choices
Answers: Manual books of accounts
Loose-leaf books of accounts
Computerized books of accounts

All of the choices
 Question 1
2 out of 2 points
The Strategic Investment Priority Plan shall be valid for a period of three (3) years subject to
review and amendment every three (3) years thereafter unless there would be a supervening
event that would necessitate its review.
Selected Answer:
True
Answers:
True
False
 Question 2
2 out of 2 points
Under the CREATE Law, only registered business enterprises shall be entitled to tax incentives
and only to the extent of their approved registered project/activity under the Strategic
Investments Priorities Plan.
Selected Answer:
True
Answers:
True
False
 Question 3
2 out of 2 points
Customs Territory refer to the national territory of the Philippines outside of the proclaimed
boundaries of the ECOZONES except those areas specifically declared by other laws and/or
presidential proclamations to have the status of special economic zones and/or free ports.
Selected Answer:
True
Answers:
True
False
 Question 4
2 out of 2 points
In the review and grant of tax incentives, the registered business enterprise must:
Selected

Answer:
All of the choices.
Answers: Be engaged in a project or activity included in the Strategic Investment

Priority Plan.
Meet the target performance metrics after the agreed time period.
Submit annual reports of beneficial ownership of the organization and

related parties.

All of the choices.
 Question 5
2 out of 2 points
The sale of an idle land not used in business by a domestic corporation shall be imposed:
Selected

Answer:
A final tax of 6% on the highest of the selling price, zonal value, or market
value as determined by the Assessor.
Answers: A final tax of 6% on the highest of the acquisition cost, selling price or fair
market value.

A final tax of 15% on the net capital gain.
The regular corporate income tax rate of 30% on the net capital gain.
 Question 6
2 out of 2 points
Generally, the authority to grant tax incentives shall be exercised by the Fiscal Incentives
Review, unless delegated to the Investments Promotion Agencies for registered projects or
activities:
Selected Answer:

with investment capital of P1 Billion and below.
Answers:

with investment capital of less than P1 Billion.
which can generate employment of 2,000 or below.
 Question 7
2 out of 2 points
If the registered enterprise sells, transfers, or disposes the imported capital equipment, raw
materials, spare parts, or accessories, without prior approval of the Investment promotion
Agency, the RBE and the vendee, transferee, or assignee shall be solidarily liable to pay thrice
the amount of the duty exemption that should have been paid during its importation.
Selected Answer:
False
Answers: True
False
 Question 8
2 out of 2 points
Pedro, a resident citizen, sold his vacation home in Los Angeles, California to Maria, also a
resident citizen, for P25,000,000. The said property was acquired in 2010 at a cost of
P15,000,000. At the time of sale, the property has a fair market value of P30,000,000. The capital
gains tax due is:
Selected Answer:

P0
Answers: P1,500,000
P1,800,000

P0
P600,000
 Question 9
2 out of 2 points
Projects or activities of registered enterprises located in areas recovering from armed conflict or
a major disaster, as determined by the Office of the President, shall be entitled to:
Selected Answer:

Two (2) additional years of ITH.
Answers:

Three (3) additional years of ITH.
Two (2) additional years of SCIT.
Three (3) additional years of

SCIT.
 Question 10
2 out of 2 points
A registered business enterprise located in Aurora and engaged in the domestic market falling
under Tier III industry is entitled to:
Selected Answer:

7 years of ITH and 5 years of Enhanced Deduction after the ITH.
Answers: 7 years of ITH and 5 years of Enhanced Deduction or SCIT after the ITH.

6 years of ITH and 5 years of Enhanced Deduction or SCIT after the ITH.
 Question 11
2 out of 2 points
The period of availment of income tax holiday incentive for registered busines enterprises is
dependent upon the following criteria:
Selected Answer:

Type of market enterprise, industry tier, and location.
Answers:

Type of market enterprise, industry tier, and investment capital.
Type of market enterprise, employment generation level, and location.
None of the choices.
 Question 12
2 out of 2 points
Juan, a resident citizen, sold to Maria his 100,000 shares of stock in ABC Corporation, a domestic
non-listed company, which he bought at par value of P100 per share, for a total selling price of
P15,000,000. How much income in relation to the transaction should Juan report in his income
tax return for the year?
Selected Answer:

P0
P10,000,000
P5,000,000

P0
 Question 13
2 out of 2 points
The following are Investment Promotion Agencies in charge of promoting investments, granting
and administering tax and non-tax incentives, and overseeing the operations of the different
economic zones and freeports in accordance with their respective special laws, except:
Selected Answer:

Metro Manila Development
Authority
Answers: Poro Point Management Corporation
Philippine Economic Zone Authority
Subic Bay Metropolitan Authority

Authority
 Question 14
2 out of 2 points
Special Economic Zones refer to selected areas in the NCR with highly developed or which have
the potential to be developed into agro-industrial, industrial, tourist, recreational, commercial,
banking, investment and financial centers whose metes and bounds are fixed or delimited by
Legislative Proclamations.
Selected Answer:
False
Answers: True
False
 Question 15
0 out of 2 points
For export enterprise and domestic market enterprise, the following may be allowed as
deductions, except:
Selected

Answer:
100% additional deduction on research and development expense directly
related to the registered project or activity and paid to local suppliers.
Answers: Additional 10% depreciation allowance for buildings directly related to the
enterpriseâ s production of goods and services.
Additional 20% depreciation allowance for machineries and equipment directly

related to the enterpriseâ s production of goods and services.

50% additional deduction on all labor expense incurred during the taxable year.

 Question 16
2 out of 2 points
The capital gains tax on sale of shares of stock is due and must be paid:
Selected Answer:

Within thirty (30) calendar days from the date of sale.
Answers: Within thirty (30) business days from the date of sale.

On or before the fifth day following the month of sale.
On or before the fifth day following the quarter of sale.
 Question 17
2 out of 2 points
Importation of capital equipment, raw materials, spare parts, or accessories directly and
indirectly used in the registered project or activity qualify for duty exemption.
Selected Answer:
False
Answers: True
False
 Question 18
2 out of 2 points
A registered business enterprise may not conduct or operate more than one qualified
registered project or activity within the same zone or freeport under the same Investment
Promotion Agency.
Selected Answer:
False
Answers: True
False
 Question 19
2 out of 2 points
Pedro sold his principal residence for P2,500,000. The said property was acquired in 2010 at a
cost of P1,500,000. The fair market value of the property as determined by the BIR is P2,800,000
but the fair market value of the property as shown in the schedule of values of the City Assessor
is P1,950,000. After a year, Pedro finished constructing his new principal residence for a total
cost of P3,000,000. How much is the historical/adjusted cost of the new principal residence?
Selected Answer:

P2,000,000
Answers: P3,000,000
P1,500,000

P2,000,000
P2,500,000
 Question 20
2 out of 2 points
Pedro sold his residential lot, a capital asset for P2,000,000. The said lot was acquired in 2010 at
a cost of P1,500,000. The fair market value of the property as determined by the BIR is
P2,200,000 but the fair market value of the property as shown in the schedule of values of the
City Assessor is P1,950,000. The entire proceeds were utilized for the acquisition of Pedroâ s
principal residence. The capital gains tax due is:
Selected Answer:

P132,000
Answers: P120,000

P132,000
P117,000
P0
 Question 21
2 out of 2 points
Existing registered business enterprises enjoying fiscal incentives shall be entitled to three (3)
additional years of income tax holiday if:
Selected

Answer:
in the duration of their incentives, they completely relocate from the National
Capital Region.
Answers: after the period of their incentives, they completely relocate from the National
Capital Region.

Capital Region.
after the period of their incentives, they completely relocate from an Ecozone
or Freeport zone to an area recovering from a major disaster.
 Question 22
2 out of 2 points
All registered business enterprises and other registered entities whether taxable or exempt, are
required to file their tax returns and pay their tax liabilities using the electronic system for filing
and payment of taxes.
Selected Answer:
True
Answers:
True
False
 Question 23
2 out of 2 points
A registered business enterprise located in Laguna Technopark and engaged in the export
market falling under Tier I industry is entitled to:
Selected Answer:

5 years of ITH and 10 years of Enhanced Deduction or SCIT after the
ITH.
Answers: 4 years of ITH and 10 years of Enhanced Deduction or SCIT after the
ITH.

ITH.

ITH.

ITH.
 Question 24
2 out of 2 points
Industry Tier III include the following activities, except:
Selected

Answer:
emerging owing to potential comparative advantage.
Answers:

research and development resulting in demonstrably significant value-added,

higher productivity, improved efficiency, breakthroughs in science and health,
and high-paying jobs.
generation of new knowledge and intellectual property registered and/or

licensed in the Philippines.
commercialization of patents, industrial designs, copyrights and utility models

owned or co-owned by a registered business enterprise.
 Question 25
2 out of 2 points
Any project or activity conducted or performed outside the geographical boundaries of the zone
or freeport shall not be entitled to the incentives provided in the CREATE Law, unless such
project or activity is conducted or operated under another Investment Promotion Agency.
Selected Answer:
True
Answers:
True
False
 Question 26
2 out of 2 points
A registered business enterprise located in Laguna Technopark and engaged in the domestic
market falling under Tier II industry is entitled to:
Selected Answer:


 Question 27
2 out of 2 points
After ITH, export enterprises:
Selected

Answer:
shall have the option to either avail of the 5% Special Corporate Income Tax or
the Enhanced Deductions under the Regular Corporate Income Tax regime, for a
period of 10 years.
Answers:

period of 10 years.
period of 5 years.
shall be entitled to avail of the Enhanced Deductions under the Regular

Corporate Income Tax regime for a period of 5 years.
shall be entitled to avail of the Enhanced Deductions under the Special

 Question 28
2 out of 2 points
ABC Corp., a PEZA-registered export enterprise located in Bonifacio Global City, decided to
relocate and transfer its operations to Clark Freeport Zone. Under the CREATE Law, ABC Corp. is
entitled to:
Selected

Answer:
additional 3 years of ITH, which shall commence at the completion of the
relocation operations.
Answers:


additional 3 years of SCIT, which shall commence at the completion of the


 Question 29
2 out of 2 points
If the shares of stock is traded in the stock exchange, it is not subject to capital gains tax but to
stock transaction tax of 6/10 of 1% of the selling price.
Selected Answer:
True
Answers:
True
False
 Question 30
2 out of 2 points
After ITH, domestic market enterprises:
Selected

Answer:
Answers: shall have the option to either avail of the 5% Special Corporate Income Tax or
period of 10 years.
period of 5 years.


 Question 31
2 out of 2 points
Tax and duty incentives granted through legislative franchises shall be excepted from the
expanded powers of the Fiscal Incentives Review Board to review, withdraw, suspend, or cancel
tax incentives and subsidies.
Selected Answer:
True
Answers:
True
False
 Question 32
2 out of 2 points
Disposal within 5 years from the importation of capital equipment, raw materials, spare parts,
or accessories, which were granted tax and customs duty exemption, shall be with the approval
of the Investment Promotion Agency and allowed only:
Selected

Answer:
All of the choices.
Answers: If transferred to another registered enterprise exempt from duties on such

importation.
If transferred to a non-registered enterprise, upon payment of the duties and

taxes on the net book value.
If donated to TESDA, State Universities and Colleges, or DepEd and CHED-

accredited schools.

All of the choices.
 Question 33
2 out of 2 points
Industry Tier I include the following activities, except:
Selected

Answer:
highly technical manufacturing.
Answers: have high potential for job creation.

generate value creation through innovation, upgrading or moving up the
value chain.
provide essential support for sectors that are critical to industrial

development

 Question 34
0 out of 2 points
The Capital Gains Tax Return shall be filed, and the corresponding CGT on sale of real property
shall be paid by the Buyer within thirty (30) days following the sale of real property.
Selected Answer:
True
Answers: True
False
 Question 35
2 out of 2 points
Under the CREATE Law, export enterprise refers to an entity engaged in manufacturing,
assembling or processing activity, and services such as information technology (IT) activities and
business process outsourcing (BPO), and resulting in the direct exportation, and/or sale of its
manufactured, assembled or processed product or IT/BPO services to another registered
export enterprise that will form part of the final export product or export service of the latter, of
at least:
Selected Answer:

70% of its total production or output.
Answers: 50% of its total production or output if the entity is at least 60% Filipino-
owned.
70% of its total production or output if the entity is more than 40% foreign-
owned.

 Question 36
0 out of 2 points
Prior to the CREATE Law, PEZA-registered enterprises generally enjoy income tax holiday (ITH)
for a period of 3 to 6 years, depending on its qualification, and 5% Gross Income Tax after the
ITH period.
Selected Answer:
False
Answers:
True
False
 Question 37
2 out of 2 points
Registered business enterprises are required to file Annual Tax Incentives Report and Annual
Benefits Report with the applicable Investment Promotion Agency:
Selected

Answer:
within 30 calendar days from the statutory deadline for filing of tax returns
Answers:

on or before the statutory deadline for filing of tax returns and payment of
taxes.
simultaneous with the for filing of tax returns and payment of taxes.
on or before April 15 of the following year.
 Question 38
2 out of 2 points
XYZ Pte. Ltd., a Singaporean limited liability company, sold to Maria today its 100,000 shares of
stock in ABC Corporation, a domestic non-listed company, which it bought at par value of P100
per share, for a total selling price of P15,000,000. How much is the capital gains tax on the sale?
Selected Answer:

P750,000
Answers:

P750,000
P495,000
P2,250,000
P1,495,000
 Question 39
0 out of 2 points
PhP2,200,000 but the fair market value of the property as shown in the schedule of values of
the City Assessor is P1,950,000. Out of the proceeds, P1,600,000 was utilized for the acquisition
of Pedroâ s residence. The capital gains tax due is:
Selected Answer:

P26,400
Answers: P26,400

P132,000
P117,000
P24,000
 Question 40
2 out of 2 points
After the expiration of the transitory period, export enterprises registered prior to the effectivity
of this Act shall have the option to reapply and avail of the incentives, which may be extended
for a certain period not exceeding 10 years at any one time.
Selected Answer:
False
Answers: True
False
 Question 41
2 out of 2 points
For the sale of principal residence to be exempt from capital gains tax, which of the following
criteria must be met:
Selected

Answer:
All of the choices.
Answers: The proceeds must be fully utilized in acquiring or constructing new principal
residence within eighteen (18) calendar months from the date of sale.
The exemption was availed only once every ten (10) years.
The CIR has been duly notified of the sellerâ s intention to avail of the tax
exemption within thirty (30) days from the date of sale.

All of the choices.
 Question 42
2 out of 2 points
The importation of COVID-19 vaccine shall be exempt from import duties, taxes and other fees,
subject to the approval or licenses issued by the DOH or the FDA
Selected Answer:
True
Answers:
True
False
 Question 43
2 out of 2 points
is P1,950,000. Out of the proceeds, P2,000,000 was utilized for the acquisition of Pedroâ s
residence 6 months from the date of sale. The capital gains tax due is:
Selected Answer:

P33,600
Answers: P0
P168,000

P33,600
P30,000
 Question 44
2 out of 2 points
residence 6 months from the date of sale. How much is the historical/adjusted cost of the new
principal residence?
Selected Answer:

P1,200,000
Answers: P1,500,000

P1,200,000
P2,000,000
P2,240,000
 Question 45
2 out of 2 points
deductions, except:
Selected

Answer:
75% additional deduction on domestic input expense.
Answers: 100% additional deduction on training expense for trainings given to the Filipino
employees engaged directly in the registered business enterpriseâ s production
of goods and services.

50% additional deduction on power expense for power utilized for the registered
project or activity.
Enhanced net operating loss carry-over.
 Question 46
0 out of 2 points
XYZ Inc., a domestic corporation, sold to Maria its 100,000 shares of stock in ABC Corporation, a
domestic non-listed company, which it bought at par value of P100 per share, for a total selling
price of P8,000,000. How much is the capital gains tax on the sale?
Selected Answer:

P1,200,000
Answers: P1,200,000
P795,000

P0
P300,000
 Question 47
2 out of 2 points
Registered business enterprises under 5% GIT prior to the effectivity of the CREATE Law, either
currently availing or entitled thereto after the ITH, shall be allowed to continue availing the said
5% GIT for 10 years.
Selected Answer:
True
Answers:
True
False
 Question 48
2 out of 2 points
P15,000,000. How much is the capital gains tax on the sale?
Selected Answer:

P750,000
Answers:

P750,000
P495,000
P2,250,000
P1,495,000
 Question 49
2 out of 2 points
Goods and services directly and exclusively used in the registered project or activity by
registered business enterprises located inside an ecozone or freeport are subject to:
Selected Answer:

VAT-exemption on importation and VAT zero-rating on local purchases.
Answers: 12% VAT.
VAT-exemption on local purchases and VAT zero-rating on importation.

 Question 50
2 out of 2 points
A registered business enterprise located in Bonifacio Global City and engaged in the export
market falling under Tier III industry is entitled to:
Selected Answer:

ITH.
ITH.

ITH.

ITH.

ITH.
 Question 1
2 out of 2 points
The Strategic Investment Priority Plan shall be valid for a period of three (3) years subject to
review and amendment every three (3) years thereafter unless there would be a supervening
event that would necessitate its review.
Selected Answer:
True
Answers:
True
False
 Question 2
2 out of 2 points
Under the CREATE Law, only registered business enterprises shall be entitled to tax incentives
and only to the extent of their approved registered project/activity under the Strategic
Investments Priorities Plan.
Selected Answer:
True
Answers:
True
False
 Question 3
2 out of 2 points
Customs Territory refer to the national territory of the Philippines outside of the proclaimed
boundaries of the ECOZONES except those areas specifically declared by other laws and/or
presidential proclamations to have the status of special economic zones and/or free ports.
Selected Answer:
True
Answers:
True
False
 Question 4
2 out of 2 points
In the review and grant of tax incentives, the registered business enterprise must:
Selected

Answer:
All of the choices.
Answers: Be engaged in a project or activity included in the Strategic Investment

Priority Plan.
Meet the target performance metrics after the agreed time period.
Submit annual reports of beneficial ownership of the organization and

related parties.

All of the choices.
 Question 5
2 out of 2 points
The sale of an idle land not used in business by a domestic corporation shall be imposed:
Selected

Answer:
Answers: A final tax of 6% on the highest of the acquisition cost, selling price or fair
market value.

A final tax of 15% on the net capital gain.
The regular corporate income tax rate of 30% on the net capital gain.
 Question 6
2 out of 2 points
Generally, the authority to grant tax incentives shall be exercised by the Fiscal Incentives
Review, unless delegated to the Investments Promotion Agencies for registered projects or
activities:
Selected Answer:

Answers:

with investment capital of less than P1 Billion.
 Question 7
2 out of 2 points
If the registered enterprise sells, transfers, or disposes the imported capital equipment, raw
materials, spare parts, or accessories, without prior approval of the Investment promotion
Agency, the RBE and the vendee, transferee, or assignee shall be solidarily liable to pay thrice
the amount of the duty exemption that should have been paid during its importation.
Selected Answer:
False
Answers: True
False
 Question 8
2 out of 2 points
Pedro, a resident citizen, sold his vacation home in Los Angeles, California to Maria, also a
resident citizen, for P25,000,000. The said property was acquired in 2010 at a cost of
P15,000,000. At the time of sale, the property has a fair market value of P30,000,000. The capital
gains tax due is:
Selected Answer:

P0
Answers: P1,500,000
P1,800,000

P0
P600,000
 Question 9
2 out of 2 points
Projects or activities of registered enterprises located in areas recovering from armed conflict or
a major disaster, as determined by the Office of the President, shall be entitled to:
Selected Answer:

Answers:

Three (3) additional years of ITH.
Two (2) additional years of SCIT.
Three (3) additional years of

SCIT.
 Question 10
2 out of 2 points
A registered business enterprise located in Aurora and engaged in the domestic market falling
under Tier III industry is entitled to:
Selected Answer:


 Question 11
2 out of 2 points
The period of availment of income tax holiday incentive for registered busines enterprises is
dependent upon the following criteria:
Selected Answer:

Answers:

Type of market enterprise, industry tier, and investment capital.
Type of market enterprise, employment generation level, and location.
 Question 12
2 out of 2 points
P15,000,000. How much income in relation to the transaction should Juan report in his income
tax return for the year?
Selected Answer:

P0
P10,000,000
P5,000,000

P0
 Question 13
2 out of 2 points
The following are Investment Promotion Agencies in charge of promoting investments, granting
and administering tax and non-tax incentives, and overseeing the operations of the different
economic zones and freeports in accordance with their respective special laws, except:
Selected Answer:

Authority
Answers: Poro Point Management Corporation
Philippine Economic Zone Authority
Subic Bay Metropolitan Authority

Authority
 Question 14
2 out of 2 points
Special Economic Zones refer to selected areas in the NCR with highly developed or which have
the potential to be developed into agro-industrial, industrial, tourist, recreational, commercial,
banking, investment and financial centers whose metes and bounds are fixed or delimited by
Legislative Proclamations.
Selected Answer:
False
Answers: True
False
 Question 15
0 out of 2 points
deductions, except:
Selected

Answer:
Answers: Additional 10% depreciation allowance for buildings directly related to the
enterpriseâ s production of goods and services.
Additional 20% depreciation allowance for machineries and equipment directly

related to the enterpriseâ s production of goods and services.

50% additional deduction on all labor expense incurred during the taxable year.

 Question 16
2 out of 2 points
The capital gains tax on sale of shares of stock is due and must be paid:
Selected Answer:

Answers: Within thirty (30) business days from the date of sale.

On or before the fifth day following the month of sale.
On or before the fifth day following the quarter of sale.
 Question 17
2 out of 2 points
Importation of capital equipment, raw materials, spare parts, or accessories directly and
indirectly used in the registered project or activity qualify for duty exemption.
Selected Answer:
False
Answers: True
False
 Question 18
2 out of 2 points
A registered business enterprise may not conduct or operate more than one qualified
registered project or activity within the same zone or freeport under the same Investment
Promotion Agency.
Selected Answer:
False
Answers: True
False
 Question 19
2 out of 2 points
is P1,950,000. After a year, Pedro finished constructing his new principal residence for a total
cost of P3,000,000. How much is the historical/adjusted cost of the new principal residence?
Selected Answer:

P2,000,000
Answers: P3,000,000
P1,500,000

P2,000,000
P2,500,000
 Question 20
2 out of 2 points
P2,200,000 but the fair market value of the property as shown in the schedule of values of the
City Assessor is P1,950,000. The entire proceeds were utilized for the acquisition of Pedroâ s
principal residence. The capital gains tax due is:
Selected Answer:

P132,000
Answers: P120,000

P132,000
P117,000
P0
 Question 21
2 out of 2 points
Existing registered business enterprises enjoying fiscal incentives shall be entitled to three (3)
additional years of income tax holiday if:
Selected

Answer:
Capital Region.
Answers: after the period of their incentives, they completely relocate from the National
Capital Region.

Capital Region.
after the period of their incentives, they completely relocate from an Ecozone
or Freeport zone to an area recovering from a major disaster.
 Question 22
2 out of 2 points
All registered business enterprises and other registered entities whether taxable or exempt, are
required to file their tax returns and pay their tax liabilities using the electronic system for filing
Selected Answer:
True
Answers:
True
False
 Question 23
2 out of 2 points
A registered business enterprise located in Laguna Technopark and engaged in the export
market falling under Tier I industry is entitled to:
Selected Answer:

ITH.
ITH.

ITH.

ITH.

ITH.
 Question 24
2 out of 2 points
Industry Tier III include the following activities, except:
Selected

Answer:
Answers:

research and development resulting in demonstrably significant value-added,

higher productivity, improved efficiency, breakthroughs in science and health,
and high-paying jobs.
generation of new knowledge and intellectual property registered and/or

licensed in the Philippines.
commercialization of patents, industrial designs, copyrights and utility models

owned or co-owned by a registered business enterprise.
 Question 25
2 out of 2 points
Any project or activity conducted or performed outside the geographical boundaries of the zone
or freeport shall not be entitled to the incentives provided in the CREATE Law, unless such
project or activity is conducted or operated under another Investment Promotion Agency.
Selected Answer:
True
Answers:
True
False
 Question 26
2 out of 2 points
A registered business enterprise located in Laguna Technopark and engaged in the domestic
market falling under Tier II industry is entitled to:
Selected Answer:


 Question 27
2 out of 2 points
After ITH, export enterprises:
Selected

Answer:
period of 10 years.
Answers:

period of 10 years.
period of 5 years.


 Question 28
2 out of 2 points
ABC Corp., a PEZA-registered export enterprise located in Bonifacio Global City, decided to
relocate and transfer its operations to Clark Freeport Zone. Under the CREATE Law, ABC Corp. is
entitled to:
Selected

Answer:
Answers:




 Question 29
2 out of 2 points
If the shares of stock is traded in the stock exchange, it is not subject to capital gains tax but to
stock transaction tax of 6/10 of 1% of the selling price.
Selected Answer:
True
Answers:
True
False
 Question 30
2 out of 2 points
After ITH, domestic market enterprises:
Selected

Answer:
Answers: shall have the option to either avail of the 5% Special Corporate Income Tax or
period of 10 years.
period of 5 years.


 Question 31
2 out of 2 points
Tax and duty incentives granted through legislative franchises shall be excepted from the
expanded powers of the Fiscal Incentives Review Board to review, withdraw, suspend, or cancel
tax incentives and subsidies.
Selected Answer:
True
Answers:
True
False
 Question 32
2 out of 2 points
Disposal within 5 years from the importation of capital equipment, raw materials, spare parts,
or accessories, which were granted tax and customs duty exemption, shall be with the approval
of the Investment Promotion Agency and allowed only:
Selected

Answer:
All of the choices.
Answers: If transferred to another registered enterprise exempt from duties on such

importation.
If transferred to a non-registered enterprise, upon payment of the duties and

taxes on the net book value.
If donated to TESDA, State Universities and Colleges, or DepEd and CHED-

accredited schools.

All of the choices.
 Question 33
2 out of 2 points
Industry Tier I include the following activities, except:
Selected

Answer:
Answers: have high potential for job creation.

generate value creation through innovation, upgrading or moving up the
value chain.
provide essential support for sectors that are critical to industrial

development

 Question 34
0 out of 2 points
The Capital Gains Tax Return shall be filed, and the corresponding CGT on sale of real property
shall be paid by the Buyer within thirty (30) days following the sale of real property.
Selected Answer:
True
Answers: True
False
 Question 35
2 out of 2 points
Under the CREATE Law, export enterprise refers to an entity engaged in manufacturing,
assembling or processing activity, and services such as information technology (IT) activities and
business process outsourcing (BPO), and resulting in the direct exportation, and/or sale of its
manufactured, assembled or processed product or IT/BPO services to another registered
export enterprise that will form part of the final export product or export service of the latter, of
at least:
Selected Answer:

Answers: 50% of its total production or output if the entity is at least 60% Filipino-
owned.
70% of its total production or output if the entity is more than 40% foreign-
owned.

 Question 36
0 out of 2 points
Prior to the CREATE Law, PEZA-registered enterprises generally enjoy income tax holiday (ITH)
for a period of 3 to 6 years, depending on its qualification, and 5% Gross Income Tax after the
ITH period.
Selected Answer:
False
Answers:
True
False
 Question 37
2 out of 2 points
Registered business enterprises are required to file Annual Tax Incentives Report and Annual
Benefits Report with the applicable Investment Promotion Agency:
Selected

Answer:
Answers:

on or before the statutory deadline for filing of tax returns and payment of
taxes.
simultaneous with the for filing of tax returns and payment of taxes.
on or before April 15 of the following year.
 Question 38
2 out of 2 points
XYZ Pte. Ltd., a Singaporean limited liability company, sold to Maria today its 100,000 shares of
stock in ABC Corporation, a domestic non-listed company, which it bought at par value of P100
per share, for a total selling price of P15,000,000. How much is the capital gains tax on the sale?
Selected Answer:

P750,000
Answers:

P750,000
P495,000
P2,250,000
P1,495,000
 Question 39
0 out of 2 points
PhP2,200,000 but the fair market value of the property as shown in the schedule of values of
the City Assessor is P1,950,000. Out of the proceeds, P1,600,000 was utilized for the acquisition
of Pedroâ s residence. The capital gains tax due is:
Selected Answer:

P26,400
Answers: P26,400

P132,000
P117,000
P24,000
 Question 40
2 out of 2 points
After the expiration of the transitory period, export enterprises registered prior to the effectivity
of this Act shall have the option to reapply and avail of the incentives, which may be extended
for a certain period not exceeding 10 years at any one time.
Selected Answer:
False
Answers: True
False
 Question 41
2 out of 2 points
For the sale of principal residence to be exempt from capital gains tax, which of the following
criteria must be met:
Selected

Answer:
All of the choices.
Answers: The proceeds must be fully utilized in acquiring or constructing new principal
residence within eighteen (18) calendar months from the date of sale.
The exemption was availed only once every ten (10) years.
The CIR has been duly notified of the sellerâ s intention to avail of the tax
exemption within thirty (30) days from the date of sale.

All of the choices.
 Question 42
2 out of 2 points
The importation of COVID-19 vaccine shall be exempt from import duties, taxes and other fees,
subject to the approval or licenses issued by the DOH or the FDA
Selected Answer:
True
Answers:
True
False
 Question 43
2 out of 2 points
residence 6 months from the date of sale. The capital gains tax due is:
Selected Answer:

P33,600
Answers: P0
P168,000

P33,600
P30,000
 Question 44
2 out of 2 points
residence 6 months from the date of sale. How much is the historical/adjusted cost of the new
principal residence?
Selected Answer:

P1,200,000
Answers: P1,500,000

P1,200,000
P2,000,000
P2,240,000
 Question 45
2 out of 2 points
deductions, except:
Selected

Answer:
Answers: 100% additional deduction on training expense for trainings given to the Filipino
employees engaged directly in the registered business enterpriseâ s production
of goods and services.

50% additional deduction on power expense for power utilized for the registered
project or activity.
Enhanced net operating loss carry-over.
 Question 46
0 out of 2 points
XYZ Inc., a domestic corporation, sold to Maria its 100,000 shares of stock in ABC Corporation, a
domestic non-listed company, which it bought at par value of P100 per share, for a total selling
price of P8,000,000. How much is the capital gains tax on the sale?
Selected Answer:

P1,200,000
Answers: P1,200,000
P795,000

P0
P300,000
 Question 47
2 out of 2 points
Registered business enterprises under 5% GIT prior to the effectivity of the CREATE Law, either
currently availing or entitled thereto after the ITH, shall be allowed to continue availing the said
5% GIT for 10 years.
Selected Answer:
True
Answers:
True
False
 Question 48
2 out of 2 points
P15,000,000. How much is the capital gains tax on the sale?
Selected Answer:

P750,000
Answers:

P750,000
P495,000
P2,250,000
P1,495,000
 Question 49
2 out of 2 points
Goods and services directly and exclusively used in the registered project or activity by
registered business enterprises located inside an ecozone or freeport are subject to:
Selected Answer:

Answers: 12% VAT.
VAT-exemption on local purchases and VAT zero-rating on importation.

 Question 50
2 out of 2 points
A registered business enterprise located in Bonifacio Global City and engaged in the export
market falling under Tier III industry is entitled to:
Selected Answer:

ITH.
ITH.

ITH.

ITH.

ITH.

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 Question 1

Answers: Compensation Income

All of the choices

Answers: HLURB-registered corporations engaged in socialized housing

PEZA/BOI-registered enterprises under the Income Tax Holiday regime

Answers: VAT Official Receipt

Answers: A juridical person, whether engaged in business or not

All government offices including GOCCs as well as Local Government

None of the choices is an exception

Answers: Is at least P1,000

Answers: National tax as to taxing

General tax as to purpose

Excise as to subject matter

Answers: The entire gross profit for the sale

The entire selling price of the car

Answers: Civic league or organization

Mutual savings bank and cooperative

Answers: National Government

General Professional Partnership

Answers: No short-term return will be prepared.

A short-term return will be prepared from July 1 to December 31

A short-term return will be prepared from December 31 to December 30 of

Answers: 1700; April 15

Answers: Payment of compensation to trustees or organizers

Payment of exorbitant compensation to employees

Answers: VAT Invoice

BIR Form No. 1600

Import Entry Declaration and Bureau of Customs OR

Sale of real property classified as ordinary asset

Sale of real property classified as capital asset

BIR Form No. 0619-F

BIR Form No. 1601EQ

BIR Form No. 1601FQ

Answers: The time of payment

The time the expense/asset is recorded or accrued or the time of payment

Answers: Withholding Tax on Compensation

Creditable Withholding Tax

Expanded Withholding Tax

Method or tool for collection of taxes

Considered as trust funds until they are remitted to the government

None of the choices is an exception

Answers: P1,000 for each information return not submitted

P5,000 for each information return not submitted

Answers: Quarterly Alphabetical List of Payees

Summary Alphabetical List of Withholding Agents of Income Payments Not

Answers: March 28, 2021

April 15, 2021

April 30, 2021

X Company can claim the expense either in 2021 or 2022 as a management

Answers: Shall subject the taxpayer only to administrative liabilities

Answers: Gross Sales/Receipts

None of the choices

Answers: BIR Form No. 0619-E

BIR Form No. 0619-F

BIR Form No. 1601FQ

The amount of VAT separately shown

Both Accrual and Cash Method

Neither Accrual nor Cash Method

Neither of the choices

Answers: Compensation Income

Gain from Disposition of Assets

None of the choices

Upon reaching the age of majority.

For alien employees, upon approval of his/her alien employment