***Transfer and

Business Tax Prelim

Exam
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* Required

Seksyong Walang Pamagat

Domestic consumption is * 1 point

taxable when the seller is 

a non-resident.

a resident.

either a resident or a non-resident

both a resident and a non-resident.

Foreign consumption shall  * 1 point

pay consumption tax if the seller is a

resident.

pay consumption tax if the seller is a

non-resident.

not pay consumption tax if the seller

is a non-resident.

not pay consumption tax regardless

of the residency of the seller.

The tax on domestic * 1 point

consumption is referred to as 

VAT on importation.

Business tax.

Either A or B

Neither A nor B
 Which of the following business * 1 point

taxes applies only for domestic

consumption? 

VAT on sales

Percentage tax

Excise tax

All of these

Excise tax is paid by  * 1 point

Sellers

Buyers

Importers or manufacturers

Seller or buyer depending on who

agreed to pay the excise tax
:
 The importation of fuels, goods * 1 point

and supplies for domestic

shipping or air transport
operations is

vatable.

always VAT exempt.

vatable if the importer is a domestic

carrier.

VAT-exempt if the importer is a

domestic carrier.

The importation of farm * 1 point

machineries and equipment is
exempt when imported by

a member of a cooperative.

a trader engaged in business.

an agricultural cooperative.

A or C
:
 Who has the burden of proving * 1 point
exemption from VAT on
importation?

The government

The importer-buyer

The seller

Both A and C

Importation is not subject to VAT * 1 point

when

made by a VAT-registered business

made by a non-VAT registered

business

it involves exempt goods

Coursed through an exempt importer

:
 Which is not included in landed * 1 point
cost?

Dutiable value

Custom’s duty

Excise tax

VAT

What is the general VAT * 1 point

threshold? 

P1,919,800

P1,919,500

P3,000,000

P10,000,000

Which is a special VAT * 1 point

threshold? 

P1,919,800

P1,919,500

P3,000,000

P10,000,000
:
 The mandatory or voluntary * 1 point
registration VAT taxpayers under
the special threshold is 

revocable anytime.

revocable after the lapse of three

years.

revocable within a year.

perpetually irrevocable.

Mandatory or voluntary * 1 point

registration as a VAT taxpayer
under the general threshold is 

revocable anytime.

revocable after the lapse of three

years.

revocable within a year.

perpetually irrevocable.
:
 The VAT registration upon * 1 point

commencement of operation
based upon expectation of
exceeding the VAT threshold
shall be 

revocable anytime.

revocable after the lapse of three

years.

revocable within a year if sales do

not actually exceed the VAT
threshold.

perpetually irrevocable.

Realty dealers, developers or * 1 point

lessors are usually registered as

Excise taxpayers

Percentage taxpayers

VAT taxpayers

Any of these
:
 Which of these is vatable? * 1 point

Properties classified as ordinary

assets

Properties classified as capital

assets

Both A and B

Neither A nor B

Which is exempt under certain * 1 point

price conditions?

Residential lot

Residential dwellings

Low-cost housing unit

All of these
:
 The rental limit on residential * 1 point
dwellings does not apply to

an apartment.

a house for rent.

a dormitory.

motels.

Which carrier has an exemption * 1 point

from business tax?

Domestic carrier

International carrier

Both A and B

Neither A nor B
:
 Which of the following * 1 point
franchisees is subject to the
franchise tax? 

Electricity

Transportation

Water utility

Telephone

The franchise tax on radio or * 1 point

television franchisees is 

2% of gross receipt.

3% of revenue.

2% of revenue.

3% of gross receipt.
:
 A radio or television * 1 point
broadcasting company with
annual gross receipt not
exceeding P9,000,000 shall pay 

VAT

3% percentage tax

2% percentage tax

no business tax.

What is the business tax liability * 1 point

of gas and water utilities with
gross receipts not exceeding
P10,000,000? 

VAT

3% percentage tax

2% percentage tax

Exempt
:
 What is the business tax liability * 1 point
of gas and water utilities with
gross receipts exceeding
P10,000,000? 

VAT

3% percentage tax

2 % percentage tax

Exempt

The percentage tax for operators * 1 point

of race tracks is 

10%

15%

18%

30%
:
 Operators of discos or cabarets * 1 point

are subject to an amuse 

10%

15%

18%

30%

Which of the following sales is * 1 point

subject to stock transaction tax?

The sale by an investor of a listed

stock directly to buyer

The sale by a listed corporation of

shares through the PSE

The sale by an investor of a listed

stock through the PSE

The sale by a listed corporation of

shares directly to buyer
:
 The IPO tax is payable by * 1 point

The buyers of IPO shares

The issuing corporation

Both the buyer and issuing

corporation

The Philippine Stock Exchange

The stock transaction tax is * 1 point

withheld and remitted by 

The Philippine Stock Exchange

The stock broker

The owner of stocks

The buyer of the stocks

:
 A business taxpayer recorded * 1 point

the following transactions during

the month:

                              Philippines         

Abroad                 Total

Sales                    
P350,000             P200,000            
P550,000

Purchases              150,000           

   100,000               250.000 

Total                     P500,000            

P300,000             P800,000

                              ========           
=========          ========

Assuming the taxpayer is a VAT-

registered taxpayer

Compute the output VAT. 

P0

P24,000

P36,000

P42,000
:
 Compute the VAT on * 1 point
importation. 

P0

P 12,000

P18,000

P32,000
:
 An agricultural supply dealer * 1 point

imported the following:

Corn grits                          
P200,000

Hog feeds                          350,000

Specialty feeds                 300,000

Compute the VAT on

importation.

P0

P36,000

P42,000

P 102,000
:
 The following data relates to the * 1 point

importation of cigarettes by Mr.

Shinto.    

Total invoice value

                                      
P1,000,000

BOC
charges                                            
        300,000

Customs
duties                                              
200,000

Excise
taxes                                                 
    300,000

Compute the VAT on

:
 importation.

P 120,000

P156,000

P 180,000

P 216,000
:
 JDC Corporation, a * 1 point

merchandiser, had the following

sales during the month:

Sale of
merchandise                                   
                  P200,000

Commission income from

consignors                          50,000

Sales of stocks
investments                                    
      180,000

Compute the amount subject to

business tax.

P 200,000

P 250,000

P 380,000

P 430,000
:
 A VAT-registered drugstore sold * 1 point
medicine with a total tax-
inclusive price of P1,120 to a
senior citizen. Compute the
amount due from the senior
citizen.

P 800

P 896

P1,003

P1,120

A private hospital admitted a * 1 point

senior citizen. Total amount due

before discharge was P112,000.
Compute the output VAT.

P0

P9,600

P 12,000

P 13,440
:
 A VAT-registered real estate * 1 point

lessor leases a residential house

to a family of five with two
senior citizens. The house
monthly rental is P10,000,
exclusive of VAT. Compute the
Output VAT to be billed.  

P0

P480

P 720

P1,200

DANUMI is a local water district * 1 point

with annual sales exceeding

P10M a year. During the month,
it collected P4,000,000 from
sales of water. Compute the
percentage tax. 

P0

P80,000

P120,000

P200,000
:
 Radyo Bolero had annual sales * 1 point

not exceeding P10M a year.

During the month, it posted a
revenue of P2,000,000 out of
which P1,800,000 was collected.
Compute the percentage tax.

P0

P36,000

P54,000

P60,000
:
 Napartas Company is a * 1 point
transportation contractor of
Haring Padala, a mall courier
company. Napartas Company
delivers the mails to addressee
location specified in the mail.
During the month, Napartas
Company was paid P400,000 by
Haring Padala. The percentage
tax is

P0

P12,000

P24,000

P48,000
:
 European Seagull, an * 1 point

international shipping carrier,

had the following receipts on its
Philippine operations:                  

Gross receipts from:      

 Passengers        Baggage             
               Total

Incoming voyages           

P2,000,000         
P1,500,000          P3,500,000

Outgoing voyages           

   3,000,000            1,800,000        
   4,800,000

Total                                    P
5,000,000        P 3,300,000        P
8,300,000
:
                                             
==========       
==========        ==========

How much is the percentage

tax? 

P0

P54,000

P99,000

P144,000
:
 American Hawk, an international * 1 point

air carrier, recorded the following

taxable receipts during a month
for outgoing flights:

From booking agencies in

                                            
 Philippines         Abroad               
Total

Passengers                       
P2,000,000         
P3,000,000         
P5,000,000                        

Mails and baggage         

      500,000            1,200,000        
   1,700,000

Total                                    P
2,500,000        P 4,700,000        P
6,700,000

                                            
==========       
==========        ==========

Compute for the percentage tax.

P15,000

P51,000

P60,000

P75,000
:
 Bullion Bank reported the * 1 point
following receipts during the
month:

Interest income:

1 to 3 year loan                              

P1,200,000

3 to 5 year loan                              

800,000

6 to 8 year loan                              

600,000

8 to 10 year loans            400,000

Total                                   
P3,000,000

                                            
==========

Compute for the gross receipts

tax. 

P100,000

P110,000

P80,000

P70,000
:
 Geneva Corporation, a non-VAT * 1 point
taxpayer, leases commercial
spaces to various businesses.
During a month, it received
P142,500 rentals, net of 5%
creditable withholding tax.
Compute the percentage tax. 

P0

P4,061

P 4,275

P 4,500

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