1. Which of the following is subject to regular income tax rate?

PRIZE FROM DANCE COMPETITION ABROAD

2. Mr. Ruki won an 800,000 prize in a national dancing competition. The organizer of the event
declared that the 800,000 grand prize was “tax free”. How much final tax must be remitted by the
organizer to the BIR?
200,000-160,000

3. For fiscal year ending June 30, 2021, ABC Corporation aside from the operating expenses of
17,500,000
20,625,000

4. Which of the following government owned and controlled corporations is subject to income tax?
NATIONAL DEVELOPMENT CORPORATION

5. The effective minimum corporate income tax (MCIT) rate for domestic corporations starting July
1, 2023 is?
1%
3%
2%
6. Deductions from gross income are
BUSINESS EXPENSES

7. A taxpayer with gross receipts of 2,000,000, and cost of sales

15,000
20k

8. Anderson disposes a vacant lot for P3,000,000. The lot has an assessed value of P2,800,000, a
zonal value of P3,200,000
210,000 - 192,000

9. Planters Merchandising paid P400,000 to employees

60,000
400,000
460,000

10. Which is not an item of gross income for taxation purposes?

All o- Unrealized income

11. Which is not subject to or can be subjected to minimum corporate income tax (MCIT)?
Joint Venture- Proprietary education institutions and hospitals

12. Which is not part of compensation income subject to regular tax?

PORTION OF SALARY CONTRIBUTED TO SSS

13. Who shall file the capital gains tax return for the sale, exchange, and disposition of real
property?
SELLER

14. This is a corporation organized, authorized, or existing under the laws of any foreign country,
not engaged in trade or business within the Philippines.
NON-RESIDENT FOREIGN CORPORATION
15. Renz, a non-resident alien individual engaged in trade or business won P100,000 from
gambling
10,000- None

16. Which is an item of gross income subject to regular tax?

Gain on sale of lot by a realty dealer
17. Which is correct with regard to the final income taxation?
It covers all items of passive income from whatever sources
TAXPAYERS NEED NOT FILE THE GROSS INCOME

18. Which of the following is deductible?

Rent of office space

19. A repair expense is deductible in the period paid or incurred unless it

Constitutes a minor repair
Constitutes a major repair
Increases the value of the propert

20. Which is a deductible business expense?

Fire loss on an insured property- Loss on theft of company assets

21. The gain arising from dealings in capital assets is:

Capital gain

22. Which of the following properties when sold may be subject to capital gains tax?
Domestic Stock

23. Which is an ordinary asset?

Principal residence of taxpayer,
Wedding Ring of the Taxpayer
Delivery Truck

24. EDUKADA is a non-profit private education institution with an issued permit to operate from
the Commission. How much is the total tax due?
2,000,000- 1,000,000

25. EDUKADA is a non-profit private education institution with an issued permit to operate from
the Commission. How much is the taxable income?
20,000,000- 10,000,000

26. A professional practitioner has a total of uncollected billings

2,100,000

27. A taxpayer with a net sales of 2,000,000 and cost of sales of 1,800,000
15,000- 10,000

28. The minimum corporate income tax (MCIT) is imposed

Beginning on the fourth

29. What is the final tax rate of a non-resident individual on winnings from PCSO games
amounting to more than 10,000?
20%

30. All income earned abroad that would otherwise be subject to final taxes
Resident alien- Resident Citizens
31. The preferential tax rate of 10% on taxable income of proprietary educational institutions and
hospitals under the CREATE law is effective on
July 1, 2020 to June 30, 2023- JULY 1, 2023

32. A concerned government employee furnished the BIR a statement

50,000 - 0

33. Individual taxpayer shall report their income on

A calendar year

34. All of these are subject to regular income tax, except

Capital gain from sale of real property located in the Philippines

35. Which of the following will not be reported in gross income?

Receipt of inheritance

36. Which is exempt from the corporate income tax of 20% or 25% under the CREATE law?
Non-profit corporations

37. Resident foreign corporations

None of the choices- are subject either to RCIT or MCIT

38. Mr. Cinco published his book

100,000 - 0
200,000

39. All of the following are criteria to claim interest expense as deduction from gross income,
except:
The interest payment arrangement must be between related taxpayers

40. Which of the following ordinary assets cannot be depreciated?’

Land

41. Which is exempt from regular tax?

Income from merchandising or trading
Income of qualified pension plans

42. Interest income from which of the following sources is subject to final income tax?
Money Market Placements

43. All items of passive income earned abroad are subject to regular tax to
Resident citizens and domestic corporations

44. Which of these concepts is not relevant to corporations?

Personal exemptions

45. The non-profit educational institutions is subject to income tax at the rate of 1% if its gross
income
From unrelated parties did not exceed 50% of the total gross income
From unrelated activities did not exceed 50% of the total gross income

46. Which is not an ordinary asset?

Personal laptop of the taxpayer
47. Which interest income is subject to regular income tax?
All
Interest income from lending
Interest income from bonds,
notes

48. Which is a deductible expense?

Marketing and advertising expenses

49. Corporations are allowed to report their income on

Either a fiscal or calendar year

50. Which of these is a special corporate taxpayer?

A private school