Module 04 – Income Tax Return

46. A tax on a person’s income, emoluments, profits arising from property, practice of profession,
conduct of trade or business or on the pertinent items of gross income specified in the Tax Code of 1997
(Tax Code), as amended, less the deductions if any, authorized for such types of income, by the Tax
Code, as amended, or other special laws.

- Income Tax

47. Any excess of the MCIT over the normal income tax may be carried forward and credited against the
normal income tax for the _ immediately succeeding taxable years

- three (3)

48. The following are individuals required to file income tax returns, except:

- Individuals deriving other non-business, non-professional related income in addition to compensation

income subject to a final tax

49. The deadline for filing of Corporate Quarterly Declaration or Quarterly Income Tax Return is on _

- the 60th day following the close of each of the quarters of the taxable year

50. What is the tax reform needed for filing Annual Income Tax for Individuals Earning Purely
Compensation Income (Including Non-Business/Non-Profession Related Income)?

- BIR Form No. 1700

Module 5 – Value Added Tax

1. For non-eFPS filers, “No payment” returns filed late will result in the imposition of penalties,
which will automatically be computed in the eFPS upon the filing of the return.

- False
2. _ is a form of sales tax. It is a tax on consumption levied on the sale, barter, exchange or lease of
goods or properties and services in the Philippines and on importation of goods into the
Philippines. It is an indirect tax, which may be shifted or passed on to the buyer, transferee or
lessee of goods, properties, or services.

- Value Added Tax

3. For Manual Filers, the deadline for submission of Monthly VAT Declaration shall be _

- Not later than the 20th day following the end of each month.

4. For eFPS Filers, the deadline for filing Monthly VAT Declaration shall be

- Based on a Staggered Filing

5. The following are correct value-added tax rates, except:

- Twelve percent (12%) of export sales and other non-zero-rated sales

6. The following are those required to file Vat Returns, except:

- Any person or entity who, in the course of his trade or business, sells, barters, exchanges, leases
goods or properties and renders services subject to VAT, if the aggregate amount of actual gross
sales or receipts do not exceed Three Million Pesos (Php 3,000,000.00)

7. What is the BIR Form for Monthly VAT Declarations?

- BIR Form No. 2550M

8. Consigned goods turned by the consignee within the 60-day period are not deemed sold and
subject to 0% Vat.

- False
9. What is the tax form for filing Quarterly Value-Added Tax Return?

- BIR Form No. 2550Q

10. For eFPS filers, “No payment” returns filed late will result in the imposition by the RDO of
penalties, which shall be paid at the concerned Authorized Agent Bank.

- False

11. Only one consolidated Monthly VAT Declaration/Quarterly VAT Return shall be filed covering
the results of operation of the head office as well as the branches for all lines of business subject
to VAT

- True

12. It means the VAT due on the sale, lease or exchange of taxable goods or properties or services
by any person registered or required to register under Section 236 of the Tax Code.

- Output Tax

13. The following are documentary requirements for Monthly Vat Declaration, except:

- Duly approved Tax Credit Memo, if applicable

14. In staggered manner of filing monthly VAT declaration, the manufacturing industry us under
what group?

- Group B

15. For Manual filers, the deadline for filing Quarterly VAT Return shall be _
- The same with the deadline for payment

16. The cancellation for registration will be effective from the first day of the following month the
cancellation was approved.
- True
17. A VAT-registered person shall issue:
- A VAT invoice for every sale, barter or exchange of goods or properties.

18. It is a sale of goods, properties or service and the use or lease of properties which is not subject
to output tax and whereby the buyer is not allowed any tax credit or input tax related to such
exempt sale.
- VAT-exempt sale

19. The basis of the date of cancellation of VAT registration is the date of issuance of tax clearance
by the BIR, after full settlement of all tax liabilities relative to cessation of business or change of
status of concerned taxpayer.
- True

20. What is the liability of a taxpayer become liable to VAT and did not register as such?
- The taxpayer shall be liable to pay the output tax as if he is a VAT-registered person, but without
the benefit of input tax credits for the period in which he was not properly registered.

21. Taxpayers are required to pay the annual registration fee of five hundred pesos (P500.00) not
later than January 31, every year.
- True

22. Currently, the Sale of God to BSP is subject to zero percent VAT.
- False

23. It is a sale, barter or exchange of goods, properties and/or services subject to 0% VAT pursuant
to Sections 106 (A) (2) and 108 (B) of the Tax Code. It is a taxable transaction for VAT purposes
but shall not result in any output tax.
- Zero-rated Sales

24. It means VAT due on or paid by a VAT-registered on importation of goods or local purchase of
goods, properties, or services, including lease or use of property in the course of his trade or
business.
- Input Tax
 25. Amortization of input VAT is only allowed until December 31, 2021 after which taxpayers with
unutilized input VAT on capital goods purchased or imported shall be allowed to apply the same
as scheduled until full utilized.
- True

Module 6 – Percentage Tax

1. Percentage Tax under Section 125 of the Tax Code can also be called as
- Amusement Tax

2. What tax form is needed to file a Quarterly Percentage Tax Return?

- BIR Form No. 2551Q

3. Percentage Tax under Section 120 of the Tax Code can also be called as
- Overseas Communication Tax

4. Under RR 4-2021, who among the following is/are exempt from 1% OPT?
- Cooperatives
- Self-employed individuals and professionals availing of the 8% tax on gross Sales

5. A business tax imposed on persons, entities, or transactions specified under Sections 116 to 127
of the National Internal Revenue Code of 1997 (also know as Tax Code), as amended, and as
required under special laws.
- Percentage Tax

6. Percentage Tax under Section 119 of the Tax Code can also be called as _
- Franchise Tax

7. The tax form needed for the filing of Percentage Tax Return for Transactions Involving Shares of
Stocks Listed and Traded Through the local stock exchange or through initial and/or secondary
public offering is_
- BIR Form No. 2552
8. The following are persons required to file percentage tax return, except:
- Persons, who are VAT-registered, who sell goods, properties or services, whose annual gross
sales and/or receipts do not exceed three million pesos (Php 3,000,000.00).

9. Percentage Tax under Section 117 of the Tax Code can also be called as
- Common Carrier’s Tax

10. In case percentage taxes for the first, second and/or third month of the quarter had been paid,
payment/s made are to be reflected in BIR Form 2551Q in Item No. 20A-Creditable Percentage
Tax Withheld per BIR Form 2306
- False

11. The decrease of the percentage tax rate of 1% under CREATE Law is intended for corporate
taxpayers only.
- False

12. The following are the requirements to be subjected to Percentage Tax under Section 116 of the
Tax Code as amended under RA 11534 (CREATE Act), except:
- None of the above

13. The following are examples of residential units, except:

- Lodging houses

14. Statement I: Stock Transaction Tax is one type of percentage tax.

Statement II: Stock Transaction Tax is the tax imposed on transactions involving shares of stocks
not listed and traded through the Local Stock Exchange.
- Only Statement I is true.

15. To be subjected to percentage tax under section 116 of the Tax Code, the taxpayer must also be
subject to another percentage tax under Sections 117 to 127
- False
16. In the sale, barter or exchange, or other disposition of shares of stocks through Initial Public
Offering (IPO), the issuing corporation shall pay the imposed tax.
- True

17. In computing the percentage tax under Section 116 of the Tax Code, the tax base should be_
- The gross receipts on the sale of services

18. Any person under section 116 of the Tax Code who elects to register under the vat system shall
not be allowed to cancel his registration for a period of three (5) years
- False

19. The taxable amount to be indicated in the quarterly percentage return shall be the total gross
sales/receipts for the quarter.
- True

20. Effective June 1,2020 until June 30, 2023, the rate of percentage tax under section 116 of the
Tax Code shall be one (1%) percent.
- False

21. Persons subject to the percentage tax return under Section n116 of the Tax Code shall have the
option to apply for VAT registration not later than ten (10) days before the beginning of the
taxable quarter.
- True

22. A taxpayer with annual gross sales and/or receipts not exceeding the VAT threshold is not
automatically subject to Percentage Tax under Section 116 of the Tax Code
- True

23. The deadline for filing BIR Form 2551Q shall not be later than the 25 th day of the month
following the end of each taxable quarter
- True

24. In the sale, barter or exchange, or other disposition of shares of stocks through Secondary Public
Offering (SPO), the broker shall pay the imposed tax.
- False
25. For purposes of threshold of P3M, the husband and wife shall be considered as one taxpayer
- False.