Compilation of MCQ

CTT EXAMINATION REVIEWER (MULTIPLE CHOICE QUESTIONS) PAGE B - 1
COMPILATION OF MULTIPLE CHOICE QUESTIONS

1. Effective January 1, 2018 this expense is no longer deductible from the gross estate of a nonresident not
citizen decedent
A. Standard deduction C. Medical expenses
B. Family home D. Judicial expenses
 D
Standard deduction is deductible at P500,000. Family home and medical expenses are not deductible even before
January 1, 2018.
2. Decedent, died January 10, 2018 had the following data:

Gross estate P 10,000,000
Funeral expenses 250,000
Judicial expenses 150,000
Claims against the estate 100,000
Transfer for public use 200,000
Losses 300,000
Hospitalization expenses 85,000
Unpaid taxes 20,000
Unpaid mortgages 50,000
Family home 2,500,000
RA 4917 300,000
The estate tax payable is

A. P 91,800 C. P 391,800
B. 97,400 D. 141,230
 A
Gross estate P 10,000,000
Less: Deductions
Ordinary -
Claims against the estate P 100,000
Transfer for public use 200,000
Losses 300,000
Unpaid taxes 20,000
Unpaid mortgages 50,000 0
Net estate after ordinary deductions 9,330,000
Less: Standard deduction 5,000,000
Family home 2,500,000
RA 4917 300,000 9330000
Taxable net estate 1,530,000
Rate of tax 6%
Estate tax 91,800
3. House Speaker Alvarez has introduced a bill in the Congress amending certain provisions of the Family
Code to the effect that in the absence of a pre-nuptial agreement, the property relations of the spouses shall
be governed by
A. Conjugal partnership of gains C. Absolute community of property regime
B. Complete separation of property D. Co-ownership
 B
4. The Tax Reform Acceleration and Inclusion Law is the short title for
A. RA 10693 C. RA 10369
B. RA 10936 D. RA 10963
 D
5. The following is a zero-rated sale of services

A. Transport of passengers by Cebu Pacific from the Philippines to Singapore.

B. Transport of passengers by Cathay Pacific from the Philippines to Singapore.
C. Transport of cargo by Etihad Airlines from the Philippines to Singapore.
D. Transport of passengers by Singapore Airlines from Hongkong to Singapore.
 A
Cathay Pacific, Etihad Airlines and Singapore Airlines are international air carriers. Their transport of -
1. passengers from the Philippines to foreign countries – not subject to business tax
2. goods or cargo from the Philippines to foreign countries – subject to 3% common carrier’s tax.
3. passengers or cargo from one foreign country to another foreign country – not taxable
6. Point-point Restaurant, non-VAT registered, had gross receipts during the year which amount to P2,500,000.
If the year of operation is 2021, it is
A. subject to Output VAT of P300,000.
B. subject to Output VAT of P267,857.
C. subject to Percentage Tax of P75,000.
D. subject to Percentage Tax of P25,000
 D
The threshold under TRAIN Law is P3,000,000. Therefore, Point-point Restaurant is not subject to VAT. The
percentage tax is P300,000 (P2,500,000 x 1%)
7. In the preceding problem, if the year of operation is 3 rd quarter of 2023, it is subject to

A. Output VAT of P300,000. C. Percentage Tax of P75,000.
B. Output VAT of P267,857. D. Percentage Tax of P25,000
 C
Effective July 1, 2023 the percentage tax rate is 3%. Therefore, Point-point Restaurant is subject to 3% percentage tax
of P75,000 (P2,500,000 x 3%)
8. In Question 7 above, the taxpayer shall be required to pay the tax on a

A. monthly basis using BIR Form No. 2551M.
B. quarterly basis using BIR Form No. 2551Q.
C. monthly basis using BIR Form No. 2550M.
D. quarterly basis using BIR Form No. 2550Q.
 B
9. Renee Rentah owns an apartment building being leased to different tenants at a monthly rental of P16,000.
The aggregate annual rental is P1,300,000. For the year 2021, Renee is not subject to
A. Value-added tax. C. Income tax.
B. 1% non-VAT. D. 1% non-VAT and income tax.
 A
The aggregate annual rental does not exceed the threshold of P3,000,000.
10. In the preceding question, suppose the monthly rental per unit in 2021 is P16,000 and the aggregate annual
rental is P3,200,000 the lessor is not subject to
B. 1% non-VAT. D. VAT and income tax
 B
The monthly rental per unit exceeds the threshold of P15,000. Therefore, the gross receipts on rental are subject from
the payment of VAT. The lessor is subject to income tax on income.
11. In the preceding problem, assume that the property is a commercial building which is being leased as offices
of professionals such as lawyers, accountants and engineers. If the monthly rental per unit in 2020 is
P12,000 and the aggregate annual rental is P3.5 million, Renee Rentah is subject to
B. 3% non-VAT. D. VAT and income tax.
 D
The property is a commercial building. Since the aggregate annual rental has exceeded the threshold of P3,000,000, it
is subject to VAT.
12. Sale or lease of goods or properties or performance of services the gross annual sales/receipts amount to
P2,500,000 by a non-VAT registered establishment is subject to
Until 12/31/17 Effective 1/1/18 Until 12/31/17 Effective 1/1/18

A. VAT Non-VAT C. Non-VAT Non-VAT
B. VAT VAT D. Non-VAT VAT
 A
Before 2018 – The annual sales/receipt had exceeded the threshold of P1,919,500. Therefore, subject to VAT.
2018 onward - The aggregate annual sales/receipts of the non-VAT establishment does not exceed the threshold of
P3,000,000; it is not subject to VAT.
13. Sale or lease of goods or properties or performance of services the gross annual sales/receipts amount to
P2,500,000 by a VAT registered establishment is subject to
Until 12/31/17 Effective 1/1/18 Until 12/31/17 Effective 1/1/18
A. VAT Non-VAT C. Non-VAT Non-VAT
B. VAT VAT D. Non-VAT VAT
 B
The establishment is VAT registered. Therefore, subject to VAT regardless of the gross annual sales/receipts.
14. TRAIN Law: In proper cases, the Commissioner of Internal Revenue shall grant refund for creditable input
taxes within _____ from the date of submission of the official receipts or invoices and other documents in
support of the application filed in accordance with regulations
A. 6 months C. 90 days
B. 3 months D. 60 days
 C
15. An alien who shall come to the Philippines and stay therein for an aggregate period of one hundred eighty
(180) days or less during any calendar year.
A. Nonresident alien C. NRA not engaged in trade or business
B. Resident alien D. NRA engaged in trade or business
 C
If the aggregate number of days of stay in the Philippines is more than 180, he is deemed NRA ETB.
16. Which of the following is false about a Tax Identification Number?

A. An estate of a deceased person shall be supplied with a separate TIN.
B. Only one TIN shall be assigned to a taxpayer.
C. Any person who shall secure more than one TIN shall be criminally liable under the provisions of the
NIRC.
D. If an employee owns a business in a city other than his place of employment, his TIN shall be registered
in the place where his place of employment is located.
 D
The TIN shall be registered with the RDO of the place where the business is located.
17. If the fringe benefit is given in 2022, the applicable tax rate is
A. 35% C. 25%
B. 65% D. 32%
 A
The fringe benefit tax rate has been increased to 35% effective January 1, 2018.
18. In January 2021, the manufacturing engineer received P16,250 fringe benefit from its employer. The
deductible fringe benefit expense and the fringe benefit tax, respectively, to the employer is
FBE FBT FBE FBT
A. P 16,250 P 5,688 C. P 16,250 P 5,200
B. 23,897 7,647 D. 25,000 8,750
 D
Grossed-up monetary value (16,250/35%) P 25,000
x Fringe benefit tax rate 35%
Fringe benefit tax 8,750
19. Which of the following is subject to income tax?
A. SSS and GSIS C. Philhealth
B. PAGCOR D. Home Development Mutual Fund
 B
20. The following pertains to the data of a resident alien:

Gross estate, Phil P 2,000,000
Gross estate, abroad 3,000,000
FE, Phil 250,000
FE, abroad 200,000
How much is the deductible funeral expense if the estate is claiming tax amnesty?
A. P 450,000 C. P 250,000
B. 200,000 D. 100,000
 B
Funeral expenses, Philippines P250,000
Funeral expenses, abroad 200,000
Actual funeral expenses 450,000
Limit, maximum P200,000
21. In the preceding problem, if the decedent died January 5, 2021, the deduction from gross estate is
A. None C. P 5,200,000
B. 200,000 D. 5,000,000
 D
Under TRAIN Law, funeral expenses are no longer deductible. However, the deductible amount of standard
deduction has been increased to P5,000,000.
22. BIR Form No. 1702-RT must be filled-out in

A. Duplicate copies
B. Triplicate copies
C. Quadruplicate
D. Quintuplicate
 B
Two (2) will be submitted upon filing while the remaining copy will be retained as a file copy of the filer.
23. For taxable year 2020. a husband and wife with five (5) qualified dependent children shall be entitled to a
maximum basic personal and additional exemptions of
A. P 100,000 C. P200,000
B. 150,000 D. None
 D
TRAIN Law has repealed the provisions on personal exemptions.
24. Which of the following statements is false?

A. An individual taxpayer is exempt on the first P250,000 of his income.
B. A compensation earner may opt to avail of the 8% income tax rate.
C. A professional income earner who avails of the 8% income tax is exempt from the payment of 3%/1%
percentage tax under Sec. 116 of NIRC.
D. An operator of cockpit cannot avail of the 8% income tax option even if its gross receipts during the
preceding year did not exceed P3 million.
 B
Only individuals with self- employment incomes under Sec 116 of NIRC who are not VAT registered are entitled to
the 8% income tax option.
25. A non-stock and non-profit educational institution is subject to

A. income tax on income of activities that are not related to educational purpose.
B. customs duties on importation of equipment that are used in the exercise of its educational function.
C. real property tax on land, buildings and improvements that are being used actually, directly and
exclusively for educational purpose.
D. income tax on interest income on bank deposits that are reserved to fund the construction of school
buildings.
 A
Non-stock, non-profit educational institutions are exempt from the payment of income tax, real property taxes and
customs duties on importation, provided it complies with the requirements of the law.
26. If the receipt is issued by a VAT seller thru a cash register machine, the receipt does not include
A. number of the machine used in printing them.
B. description of goods or service, quantity, unit and total cost.
C. value-added tax amount.
D. the buyer’s name, address, and TIN.
 D
27. The version of the Bicameral Conference Committee on a bill which has been approved by the Senate and
the House of Representatives and submitted to the Office of the President is called
A. Bill approved on 3rd reading C. Law
B. Proposed law D. Enrolled bill
 D
28. Mr. A, government employee, has retired from service. Which of the following amounts is taxable to him?
A. P 730,000 – money value of the accumulated leave credits.
B. 210,000 – lump-sum retirement pay from GSIS.
C. 150,000 – return of insurance premium payments from a private insurance company
D. 34,000 – salary for his last month of service.
 D
Terminal leave pay and retirement pay are income tax exempt.
Indemnity from an insurance company is not taxable up to the extent of the amount of premium contribution
because it is tantamount to a return of capital.
29. In accomplishing BIR Form 2316 (Certificate of Compensation Payment/Tax Withheld) of an employee,
which of the following is not included in the Non-Taxable/Exempt Compensation Income?
A. 13th month pay and other benefits.
B. Employee’s share contribution to Social Security System.
C. Employee’s share contribution to Philhealth
D. Employer’s share contribution to GSIS
 D
The employee’s share is included in the amount of Non-taxable Compensation Income.
30. Your clients are planning to put up a business partnership in your city. They showed to you a shortlist of
government offices where they are planning to register the proposed business. Which of the following offices
will not register the proposed partnership business?
A. Bureau of Internal Revenue C. Department of Trade and Industry (DTI)
B. City Government of Sorsogon D. Securities and Exchange Commission (SEC)
 C
Department of Trade and Industry (DTI) is the registration office for Single Proprietorship businesses.
31. Your VAT registered client will file an Application to Print Receipts with the BIR and is being asked to submit
a sample copy of the receipt. If you are consulted on the sample O.R., which of the following data should not
appear in the Official Receipt?
A. VAT Registration with Tax Identification Number (TIN)

B. The phrase “This document is not valid for claiming input taxes.”
C. Authority to Print Number and Expiration Date
D. O.R. Number
 B
Such phrase is not allowed only on Official Receipts of Non-VAT taxpayers and Delivery Receipts, Acknowledgment
Receipts, etc. issued by VAT taxpayers.
32. Donor A donated a parcel of land to B on January 5, 2021 on account of marriage. The property has a zonal
value of P500,000 and an assessor’s market value of P550,000. How much is the donor’s tax due if B is a
legitimate child of A? Former girlfriend of A?
Child Former girlfriend Child Former girlfriend

A. P 18,000 P 18,000 C. P 29,400 P 150,000
B. 33,000 33,000 D. 16,400 150,000
 A
Gross gift (higher amount) P 550,000
Less: Exemption 250,000
Taxable amount 300,000
Donor’s tax rate 6%
Tax due 18,000
33. An invoice or official receipt shall be valid for a period of __ years from the date of _____
A. 5 years; printing C. 3 years; permit to use
B. 5 years; permit to use D. None of the above
 D
34. Payments by local government units to government contractors or sellers of office supplies are subject to 5%
A. final withholding tax C. withholding tax on compensation
B. creditable withholding tax D. expanded withholding tax
 B
Effective January 1, 2021, the VAT withholding on government money payments has shifted from final to creditable
withholding tax.
35. An association has applied for registration with the Bureau of Internal Revenue. After submission of the
requirements, it was issued a Certificate of Registration (COR) which is otherwise known as BIR Form No.
___
A. 2316 C. 2303
B. 2803 D. 1703
 C
36. The following individuals are not required to file income tax return, except
A. An individual whose income tax has been correctly withheld by his employer, provided, that such
individual has only one employer for the taxable year – the Certificate of Withholding filed by the
respective Employers, duly stamped “Received” by the Bureau shall be tantamount to the substituted
filing of income tax returns by said employees;
B. An individual whose sole income has been subjected to final withholding tax;
C. A minimum wage earner;
D. An individual earning purely compensation income from two employers whose total compensation
income does not exceed the amount of P250,000.
 D
Compensation income earner from two or multiple employers are disqualified to avail of the substituted filing of
income tax return.
37. Brooke is a real estate broker. Her total gross receipts amounted to ₱3,050,000. Her recorded cost of service
and operating expenses were ₱450,000 and ₱1,200,000, respectively.
Her income tax liability if the income is earned in 2021 is:
A. P 244,000 C. P 310,000
B. 112,000 D. Either P244,000 or P310,000
Income tax table (January 1, 2018 to December 31, 2022 taxable income)
Over Not over Tax Plus Of excess over

P 250,000 Exempt
P 250,000 400,000 20% - P 250,000

400,000 800,000 P 30,000 25% 400,000
800,000 2,000,000 130,000 30% 800,000
2,000,000 8,000,000 490,000 32% 2,000,000
8,000,000 - 2,410,000 35% 8,000,000
 C
Gross receipts P 3,050,000
Less: Cost of services 450,000
Gross income 2,600,000
Less: Operating expenses 1,200,000
Taxable income 1,400,000
Tax on P800,000 P 130,000

600,000 x 30% 180,000
Tax due 310,000
38. Her income tax liability if the income is earned in 2023 is:
A. P 252,500 C. P 310,000
B. 112,000 D. Either P244,000 or P310,000
Income tax table (Effective January 1, 2023 income)
Over Not over Tax Plus Of excess over

P 250,000 Exempt
P 250,000 400,000 15% - P 250,000

400,000 800,000 P 22,500 20% 400,000
800,000 2,000,000 102,500 25% 800,000
2,000,000 8,000,000 402,500 30% 2,000,000
8,000,000 - 2,202,500 35% 8,000,000
 A
Tax on P800,000 P 102,500

600,000 x 25% 150,000
Tax due 252,500
39. Distinctions between donor’s tax and estate tax, except

A. Period for payment of tax C. Tax rate
B. Attachments to the tax return D. Cause of transfer
 C
Net taxable estate tax and taxable gift are both subject to tax rate of 6%.
40. The VAT rate is not

A. 12% C. 5%
B. 0% D. 10%
 D
Sales of goods, services and importations of goods are ordinarily subject to 12% VAT rate. In some cases, however,
sales of goods and services are subject to 0% VAT rate.
If sold to the government, GOCCs, agencies and instrumentalities are subject to creditable withholding tax of 5%.
41. Which statement is false? The certificate of zonal values of real properties for donor’s tax, estate tax and
capital gains tax purposes
A. shall be issued by the Revenue District Offices.
B. must be issued by the Regional Office.
C may be issued by the Assessment Performance and Monitoring Division of the national office.
.
D is subject to a Certification Fee of P100 and P15 documentary stamp tax.
.
 B
42. A business establishment becomes subject to VAT if its gross receipts in a 12-month period exceeds
A. P 1,500,000 C. P 3,000,000
B. 2,500,000 D. 9,191,500
 C
43. Which final tax rate is false?

A. Capital gains from sale of shares of stock not traded in the stock exchange - 15%.
B. Interest income received by an individual taxpayer (except a non-resident individual) from a depository
bank under the expanded foreign currency deposit system – 15%.
C. Philippine Charity Sweepstakes and lotto winnings amounting to P 10,000 or less - 20%
D. Fringe benefit tax – 35%
E. None of the above
 C
Lotto winnings amounting to P10,000 and below are not subject to income tax.
44. Which of the following corporations is taxable?

A. Government Service Insurance System (GSIS)
B. Social Security System (SSS)
C. Philippine Health Insurance Corporation (PHIC)
D. Home Development Mutual Fund (Pag-ibig)

 E
45. Which ceiling on the following de minimis benefits is not correct?

A. Monthly rice allowance – P2,000
B. Monetized value of vacation and sick leave credits paid to government officials and employees - 10
days
C. Uniform and clothing allowance – P6,000 per annum
D. Medical cash allowance to dependents _ P250 per month
 B
Monetized value of accumulated vacation and leave credits of government officials and employees has no ceiling.
46. The ceiling on rice allowance as de minimis benefit is –

A. P1,000 per month C. P 2,000 per month E. None of the above
B. 1,500 per month D. 18,000 per annum
 C
47. In 2022, Miss Minnie Dy received annual clothing allowance amounting to P9,000. Her 13 th month pay is
P80,000. No other benefits were received for the entire year. Which of the following statements is false?
A. The excess of P3,000 shall be taxable.
B. The entire Other Benefits of P83,000 is tax exempt.
C. Exempt on the entire P89,000.
D. The entire clothing allowance of P9,000 is tax exempt.
 A
Clothing allowance is exempt up to its ceiling of P6,000 a year. The excess of P3,000 which falls under “13 th Month
Pay and Others Benefits” is exempt, except the excess over P90,000, if any.
48. A minimum wage earner is not exempt from

A. basic statutory minimum wage. D. holiday pay and hazard pay.
B. overtime and night shift differential pay. E. None of the above
C. commission
 C
Commission is a taxable compensation income.
49. Fe Bisic is a compensation income earner. Her total basic pay during the year is P220,000 which is more
than the statutory minimum wage. Other income during the year were; Overtime pay, P30,000; Holiday pay,
P15,000; Hazard pay, P24,000 and Night-shift differential pay, P18,000. If the amounts are net of mandatory
contributions to SSS, Philhealth and Pag-Ibig, how much is the taxable income?
A. None C. P 307,000 E. None of the above
B. P 220,000 D. 57,000
 C
Basic pay P 220,000

Add: Other income
Overtime pay P 30,000
Holiday pay 15,000
Hazard pay 24,000
Night shift differential pay 18,000 87,000
Taxable compensation income 307,000
50. Which of the following statements is not correct?

A. Supplementary compensation income includes payments to an employee in addition to the regular

compensation, such as commission, overtime pay, taxable retirement, taxable bonus, and other taxable
benefits, with or without regard to a payroll period.
B. Representation and Transportation Allowances (RATA) granted to public officials and employees are not
subject to income tax.
C. Personnel Economic Relief and Allowance (PERA) granted to government employees are not subject to
income tax if it constitutes reimbursement for expenses incurred in the performance of official duties.
D. Representation and Transportation Allowances (RATA) granted to government employees are not
subject to income tax if it constitutes reimbursement for expenses incurred in the performance of official
duties.
 B
RATA granted to public officers and employees under the General Appropriations Act and the Personnel Economic
Relief Allowance (PERA) which essentially constitute reimbursement for expenses incurred in the performance of
government personnel’s official duties shall not be subject to income tax and consequently to withholding tax.
51. Santi retired from employment with the government on November 30, 2022. As a consequence of his
retirement, he received the following:
Monthly basic salary (January - November) P 30,000
Monthly Personnel Economic Relief and Allowance (reimbursement) 2,000
13th month pay 30,000
Cash gift 5,000
Retirement pay 750,000
Terminal leave pay 120,000
Longevity pay 30,000
Rice allowance per month 2,500
Clothing allowance 8,000
Loyalty award 20,000
How much is the taxable compensation income of Santi in 2022?
A. P 452,500 C P 330,000 E. None of the above
.
B. 332,500 D 356,500
.
 B
Basic salary (P30,000 x 11) P 330,000

Add: Taxable other benefits
13th month pay P 30,000
Longevity pay 30,000
Cash gift 5,000
Rice allowance (2,500 – 2,000) x 11 5,500
Clothing allowance (8,000 – 6,000) 2,000
Loyalty award 20,000
Total 92,500
Less: Exemption 90,000 2,500
Taxable 332,500
52. Christopher P, married to Julie A, had an income of P450,000 in 2022. If the spouses have seven (7)
dependent children, the income subject to income tax
A. P 100,000 C. P 225,000 E. None of the above
B. 200,000 D. 50,000
 B
Income earned P 450,000

Taxable 200,000
53. Ka Wani, married with two (2) dependent children, works for PACTT, Inc. He is not engaged in business nor
has any other source of income other than his employment. In 2023, Ka Wani earned a total taxable
compensation income of ₱600,000. The income tax due on Ka Wani is

B. 42,500 D. 48,000
 B
Compensation income P 600,000
Tax on P 400,000 P 22,500

200,000 x 20% 40,000
Income tax due 42,500
Items 54 and 55:

54. Ling owns a small sari-sari store and a beauty parlor. In 2022, her gross sales in the store amounted to
P680,000, in addition to her receipts from the parlor of ₱500,000, while her total cost of sales/services and
operating expenses amounted to P 300,000 and P200,000, respectively.
The income tax due if she signified her intention to be taxed at the 8% income tax rate
B. 94,400 D. 34,400
 A
Gross sales – store P 680,000

Gross receipts – parlor 500,000
Total gross receipts 1,180,000
Rate of tax 8%
55. The income tax due on Ling if she failed to signify her intention to be taxed at the 8% income tax rate
B. 54,400 D. 100,000
 D
Total gross receipts P1,180,000

Less: Cost of sales P 300,000
Operating expenses 200,000 500,000
Tax on P400,000 P 30,000

280,000 x 25% 70,000

A. Taxpayer shall be allowed an income tax credit of quarterly payments initially made under the 8% income
tax option.
B. Taxpayer is liable for business tax(es), in addition to income tax. A percentage tax pursuant to Section
116 of the Tax Code, as amended, shall be imposed on P3,000,000. If the annual gross sales/receipts
exceed P3,000,000, it shall be subject to VAT.
C. Sellers of agricultural food products in their original state are liable for percentage tax on the first
P3,000,000 if they opted for 8% income tax. However, the excess shall be subject to VAT.
D. Percentage tax due on the P3,000,000 shall be collected without penalty, if timely paid on the due date
immediately following the month the threshold was breached.
 C
Sellers of agricultural food products in their original state are VAT exempt
57. Capital gains realized during the taxable year from the sale, barter, exchange or other disposition of shares
of stock are subject to 15% final tax if the stocks are issued by a
A. resident foreign corporation C . corporation E. None of the above
B. nonresident foreign corporation D. domestic corporation
 C
58. In 2022, Aching sold shares of stocks of a domestic corporation. The selling price is P80,000 while the cost
is P65,000.
The final tax on the sale is
A. P 1,500 C. P 480 E. None of the above
B. 2,250 D. 750
 B
Selling price P 80,000

Less: Cost 65,000
Capital gain 15,000
Rate of tax 15%
Final withholding tax 2,250
59. Which of the following is not considered as intangible personal property within?
A. Franchise which must be exercised in the Philippines.
B. Shares of stocks issued by a domestic corporation.
C. Obligations or bonds issued by a foreign corporation with business situs in the Philippines.
D. Shares of stocks issued by a foreign corporation 51% of the business of which is located in the
Philippines.
 D
60. Which of the following donations result to a net gift of P80,000?

A. Alakdan donated property to Balbakwa with a market value of P140,000. The property is subject to a
mortgage indebtedness of P60,000 which was paid by the donor at the time of the donation.
B. Altura requested Busina to pay Altura’s liability with Cabangis in the amount of P100,000 and in return,
the personal property of Altura valued at P180,000 will be donated to Busina.
C The daughter of Ananias was married to her boyfriend. As a gift, Ananias donated cash worth P100,000
. to his daughter.
D Property worth P80,000 was donated by Bibong to Barangay Maaliwalas for use as site of the Barangay
. Hall.
 B
Gross gift P 180,000

Less: Diminution on the value of donation 100,000
Net gift 80,000
61. On March 6, 2022, a Filipino citizen donated house and lot with fair market value of P2,000,000 to his child
on account of marriage last January 1, 2022. Gift tax return was filed and tax paid on July 5, 2022. The
amount payable as of July 5, 2022 is:
A. P136,486 C. P105,000 E. None of the above
B. P134,391 D. P135,427
 B
Gross gift P 2,000,000

Net gift 1,750,000
Rate of tax 6%
Tax due 105,000

Add: Surcharge (105,000 x 25%) 26,250
Interest (105,000 x 12% x 91/365) 3,141
Tax payable 134,391
March (31 - 6) 25
April 30
May 31
June 30
July 5
Total 121
Less: Filing/payment period 30
Days delinquent 91
62. Jose Dasing, Australian, died in 2022. If the decedent was a resident of Manila, how much is the deductible
standard deduction?
A. P5,000,000 C. P1,000,000 E. None of the above
B. 500,000 D. None
 A
He is a resident alien.
63. If the decedent was a resident of Australia, the standard deduction is

A. P5,000,000 C. P1,000,000 E. None of the above
B. 500,000 D. None
 B
The estate of a nonresident alien is entitled to claim a standard deduction of P500,000.
64. The estate tax return should be accompanied by a certificate of an independent CPA if the gross estate of a
decedent who died in 2022 is:
A. P5,000,000 C. Over P2,000,000 E. None of the above
B. 2,000,000 or over D. Over P5,000,000
 D
65. Mama Tai died on January 3, 2020. The estate tax due and payable of P25,000 was paid on January 3,
2023.
The estate tax due, including increments but excluding compromise penalty is
A. P 37,250 C. 41,250 E. None of the above
B. 45,000 D. 38,750
 A
Tax due P 25,000

Add: Penalties
Surcharge (25,000 x 25%) 6,250
Interest (25,000 x 12% x 2) 6,000
Tax payable 37,250
66. Mr. Fay, lessor, rents his 3 commercial and 10 residential units for a monthly rent of P50,000 and P14,000
per unit, respectively. During the taxable year, his accumulated gross receipts amounted to P3,480,000
(P1,800,000 from commercial units and P1,680,000 from residential units).
Which statement is false?
A. The P1,800,000 from commercial units is not subject to VAT since it did not exceed P3,000,000.
B. Mr. Fay is subject to VAT.
C. The P1,680,000 accumulated receipts from the residential units are not subject to Percentage Tax.
D. The P1.8 million from commercial units is subject to 1% percentage tax, while the P1.68
million from residential unit is exempt from VAT.
 B
Gross receipts on lease of

1. Residential units: Subject to business tax if the monthly rental per unit exceeds P15,000.
2. Commercial units: If the aggregate annual rental per unit does not exceed P3 M, subject to 1% non-VAT;
whereas, if it exceeds P3M, subject to VAT.
67. Sale of drugs and medicines prescribed for diabetes, high cholesterol, and hypertension are exempt from
VAT beginning
A. January 1, 2018 C. January 1, 2019 E. None of the above
B. July 1, 2018 D. January 1, 2020
 C
68. All of the following, except one, are exempt from the payment of the 1% Non-VAT
A. Cooperatives
B. Marginal income earners
C Self-employed individuals and professionals availing of the 8% tax on gross sales and/or receipts and
. other non-operating income.
D Self-employed individuals and professionals availing of the graduated rates in computing income tax on
. their income.
 D
Self-employment income is not subject to business tax if the taxpayer has availed of the 8% income tax option.
69. Exemptions from VAT is limited to the following, except

A. raw agricultural food products C. health E. None of the above
B. agricultural non-food products D. education
 B
70. Del owns a small convenience store. Although the annual gross sales range from P2,400,000 to P2,900,000,
she decided to register it as a VAT business in 2021. The store
A. may opt for the 8% income tax option.
B. is subject to 12% VAT.
C. is subject to the 1% non-VAT.
D. may be subject to either 12% VAT or to 1% non-VAT.
 B
VAT registered establishments cannot avail of the 8% income tax option.
71. In the preceding question, assuming the sales during the year amounted to P2,600,000 (net of VAT) while
the cost of sales and operating expenses (both net of VAT) were P1,900,000 and P450,000, respectively, the
total of income and business taxes payable amount to
B. 238,000 D. None
 A
Output tax (2,600,000 x 12%) P 312,000 Sales P 2,600,000

- Input tax (1,900,000 + 450,000) x 12% 282,000 Less: Cost of sales 1,900,000
VAT payable 30,000 Gross income 700.000
Less: Operating expenses 450,000
Taxable income 250,000
Tax on P250,000 Exempt
72. Per provision of TRAIN Law, effective 2019 the excise tax on diesel will be
A. P 2.00 C. P 4.50 E. None of the above
B. 2.50 D. 9.00
 C
73. Per provision of TRAIN Law, the excise tax on drinks containing sweeteners is
A. P 12.00 C. Exempt E. None of the above
B. 6.00 D. 9.00
 B
74. In January 2022, the manufacturing engineer (supervisory employee) is receiving cash of P16,250 monthly
as fringe benefit from his employer. The deductible fringe benefit expense and the fringe benefit tax,
respectively, during the quarter is
FBE FBT FBE FBT E. None of the above
A. P 16,250 P 5,688 C. P 48,750 P 15,600
B. 25,000 8,750 D. 75,000 26,250
 D
Fringe benefit expense (16,250/65%) P 25,000

Fringe benefit tax rate (25,000 %) 35%
Fringe benefit tax per month 8,750
x Months in a quarter 3
26,250
Items 75 to 76:
In 2019, Mrs. Mapang-api owns a one (1) hectare residential land situated in Mandaue City. The zonal value
is P100 per square meter, while the market value in the tax declaration is P850,000.
75. If the city maximizes the assessment level and tax rate to that allowed by law, how much is the annual real
property tax payable on the land?
B. 10,200 D. 5,100
 D
Market value P 850,000

x Assessment level (maximum) 20%
Assessed value 170,000
Rate of tax 2%
Basic tax 3,400
Add: Special education fund (170,000 x 1%) 1,700
Total real property tax 5,100
76. If Mrs. Mapang-api decides to donate the property to her daughter in law, how much is the donor’s tax due on
the donation?
B. 120,000 D. 525,000
 C
Gross gift (10,000 x P100) P1,000,000

Net gift 750,000
Rate of tax 6%
Donor’s tax due 45,000
77. Taxis, jeepneys and bus operators with annual gross receipts of not exceeding P3 million are subject to
business tax of
A. 12% VAT C. 3% Carrier’s Tax E. None of the above
B. 1% non-VAT D. 3% Carriers Tax/12% VAT
 C
78. The BIR Form to be used in the quarterly remittance of creditable income taxes withheld (expanded) is
A. 1601EQ C. 1601FQ
B. 0619E D. 0619F
 A
79. In 2023, payments by local government units to government contractors or sellers of office supplies are
subject to 5%
A. final withholding tax C. withholding tax on compensation
B. creditable withholding tax D. expanded withholding tax
 B
Items 80 to 82:
Mr. A is an accountant who is engaged in public practice. His total gross receipts in 2021 amounted to
₱2,250,000. His recorded cost of service and operating expenses were ₱450,000 and ₱100,000,
respectively.
80. HOW MUCH is the income tax due if Mr. A avails of the graduated rates in the tax table?
A. P 570,000 C. P 400,000
B. 160,000 D. Cannot be determined
 C

Less: Cost of services 450,000
Gross income 1,800,000
Less: Expenses 100,000
Tax on P 800,000 P 130,000

900,000 x 30% 270,000
Tax due 270000
81. HOW MUCH is the income tax due if Mr. A avails of the 8% income tax option?
A. P 180,000 C. P 400,000
B. 160,000 D. Cannot be determined
 B

Taxable amount 2,000,000
Rate of tax 8%
Tax due 160,000
82. How much is the tax benefit if Mr. A avails of tax avoidance scheme by choosing the method that will require
him to pay less tax to the government?
A. P 240,000 C. P 160,000
B. 307,500 D. None of the above
 D
Income tax – graduated rates P 400,000

Add: Business tax (2,250,000 x 1%) 22,500
Total taxes on graduated rates 422,500
Less: 8% option 160,000

Tax benefit 262,500
83. Sale of shares of stock which are listed and traded in the stock exchange is subject to a business tax rate of
A. ½ of 1% C. 6/10 of 1% E. None of the above
B. 15% D. 5%; 10%
 E
84. In January 2022, Don Knorr donated commercial land to his second cousin. The value in the tax declaration
is P2 million while the zonal value is P1.7 million. How much is the tax due on the donation?
A. P 600,000 C. P120,000
B. 240,000 D. 105,000
 D
Gross gift (higher) P 2,000,000

Rate of tax 6%
Tax due 105,000
85. Which of the following businesses can avail of the 8% income tax option?
A. KTV bar C. Taxi business
B. Mini-grocery D. VAT registered computer shop
 B
Establishments that are not subject to business tax under Sec. 116 of NIRC are not eligible to avail of the 8% income
tax option.
86. In starting a business, which is the last step in registering it with the BIR under Single Window Policy?
A. Submit application and documents. C. Pay fees, taxes and charges E. None of the above
B. Get BIR Printed Receipts/Invoices D. . Get TIN, COR and ATP
 B
87. Which of the following documents is not required in registering a business with BIR?
a. Mayor’s Permit c. Valid ID e. None of the above
b. DTI/SEC Registration d. Payment of Registration Fee
 C
88. Not qualified to avail of the 8% income tax rate, except

A. Purely compensation income earner
B. VAT registered taxpayer with annual gross receipts of P1,500,000
C. Partners of general professional partnership
D. Professional with non-operating income.
 D
89. Which is FALSE? Business with annual gross receipts of more than P250,000 but not more than P720,000
A. Maybe subject to graduated income tax rates
B. May avail of 8% income tax rate but subject to percentage tax on business
C. May avail of 8% income tax rate but exempt from submission of financial statement.
D. Must secure Certificate of Registration
 B
A business that avails of the 8% income tax option is exempt from the payment of business tax.
90. Which is FALSE? Businesses with annual gross receipts of more than P3,000,000
A. are subject to graduated income tax rates.

B. are subject to creditable withholding tax.
C. may avail of 8% income tax rate but exempt from payment of percentage tax.
D. are subject to VAT.
 C
Those with annual gross sales or gross receipts of more than P 3 million are disqualified to avail of the 8% income
tax option.
91. Which of the following documents is not required to be attached to BIR Form 1706?
A. Certificate Authorizing Registration (CAR)
B. Notarized Deed of Sale
C. Copy of the Transfer Certificate of Title (TCT)
D. Certified true copy of the latest Tax Declaration
 A
92. One of the following taxes does not require the use of BIR 2551Q in filing the return. Which is it?
A. Percentage tax on racetracks D. Franchise tax on water utilities
B. Percentage tax on winnings E. None of the above
C. Percentage tax on international
carriers
 B
BIR Form No. 1600WP will be used
93. B. Gus is a rice dealer. His total annual gross sales do not exceed P3,000,000.00. He can avail of the
following, except:
A. As VAT-exempt taxpayer.
B. He may elect to avail of the optional registration for VAT of exempt person
C. If he elects to register as VAT taxpayer, he shall not be entitled to cancel his VAT registration for five (5)
years.
D. He may elect to pay the 8% commuted tax rate on gross sales or receipts and other non-operating
income in lieu of the graduated income tax rates and percentage tax. However, he shall not be allowed
to avail of the optional registration for VAT of exempt person.
 C
Voluntary VAT registration can be cancelled after three (3) years.

94. Mr. Y signified his intention to be taxed at 8% income tax in lieu of the graduated income tax rates and
percentage tax (3% non-VAT) in his 2018 1st Quarter Income Tax. However, his gross sales during the
taxable year have exceeded the VAT threshold as follows:
January P 250,000 June 250,000 November 1,000,000

February 250,000 July 250,000 December 1,000,000
March 250,000 August 250,000 Total sales 5,250,000
April 250,000 September 250,000
May 250,000 October 1,000,000
Which of the following statements is false?

A. Subject to 8% income tax until December 31, 2018.
B. Subject to 12% VAT prospectively beginning November 2018.
C. He is required to update his registration from non-VAT to VAT on or before November 30, 2018.
D. Subject to 8% income tax option until October 2018.
 A
Items 95 to 97:
Mr. Z, single with one dependent child, operates a car aircon repair shop. For the year 2022, it had gross
receipts of P1,630,000. The cost of services and operating expenses amounted to P400,000 and P200,000,
respectively.
95. The business tax payable is
A. P 48,900 percentage tax C. P 30,900 percentage tax e. None of the above
B. 123,600 value-added tax D. Exempt
 E
OPT (P1,630,000 x 1%) P 16,300
96. If Mr. Z avails of the 8% tax option, the total tax due is
a. P 110,400 c. 247,900 e. None of the above
b. 159,300 d. Exempt
 A

Rate of tax 8%
Tax due 110,400
97. Period within which refund/credit of input taxes shall be made

A. within ninety (90) days from the date of submission of the official receipts or invoices and other
documents in support of the application filed.
B. within ninety (90) days from the date of payment of the tax.
C. within sixty (60) days from the date of submission of the official receipts or invoices and other
documents in support of the application filed
D. within sixty (60) days from the date of payment of the tax.
 A
98. Tax Amnesty Act is Republic Act No.

A. 11213 C. 11123 E. None of the above
B. 11312 D. 12113
 A
99. The Tax Amnesty Act of 2019 became effective on

A. April 1, 2019 C. April 24, 2019 E. None of the above
B. April 9, 2019 D. January 1, 2019
 C
100. Jose Pag-Anapa owns a janitorial single proprietorship business registered with DTI as JPA Janitorial
Services. In the official receipts and invoices, the business style is
A. JUAN Pag-Anapa
B. JPA Janitorial Services
C. Janitorial Services
D. Either Juan Pag-Anapa or JPA Janitorial Services
 B
101. Jose Namayapa died in 2021. Among the properties he left is a family home consisting of:
Classification Zonal value

Assessor’s value
Property
Residential lot Community property P 3,000,000 P 3,500,000
Residential house Exclusive property - 5,000,000
The amount includible in gross estate is –
A. P 6,500,000 C. P 8,000,000 E. None of the above

B. 8,500,000 D. 6,750,000
 B
Lot P 3,500,000
House 5,000,000
Gross estate 8,500,000
102. The deductible family home is

A. P 6,500,000 C. P8,000,000 E. None of the above
B. 8,500,000 D. 6,750,000
 D
Lot (P3,500,000/2) P 1,750,000

House 5,000,000
Deductible 6,750,000
103. Pacman, resident citizen, earned income of P500,000 in United States and paid the income tax in that
country. Which of the following is FALSE?
A. The income tax paid is US is creditable from his income tax in the Philippines.
B. The income in US is taxable in the Philippines.
C. The income tax paid is US is deductible from his gross income in the Philippines.
D. The income tax in US maybe subject to the 8% income tax option in the Philippines.
 D
104. In January 2022, Don Nor made a joint donation of commercial land to his second cousin and its spouse.
The value in the tax declaration is P2 million while the zonal value is P1.7 million. How much is the tax due
on the donation?
A. P 90,000 C. P120,000 E. None of the above
B. 240,000 D. 105,000
 D
Gross gift P 2,000,000

Taxable gift 1,750,000
Rate of tax 6%
Tax due 105,000
105. Which of the following businesses can avail of the 8% income tax option?
A. Car wash C Jeepney operation E. None of the above
.
B. videoke bar D VAT registered computer shop
.
 A
106. In the 2nd quarter of 2022, Sexy Teksi owns four (4) units of taxi. Gross receipts of ₱1,680,000; cost of
services and operating expenses were ₱800,000 and ₱200,000, respectively, and with non-operating income
of ₱120,000.
The business tax due is
A. 3% Common carrier’s tax D. Exempt from business tax
B. 3% tax on persons exempt from VAT E. None of the above
C. Value-added tax
 A
107. Her business tax due for the quarter shall be

A. P 54,000 C. P394,000 E. None of the above
B. 20,400 D. 50,400
 D

Rate of tax 3%
Common carrier’s tax 50,400
108. Which of the following is not subject to the 3% business tax?

A. Jeepney C. Philippine airlines E. None of the above
B. Taxi D. Singapore airlines
 C
Domestic airline companies are subject to VAT.
109. A non-stock, non-profit university is subject to

A. Income tax on income from operation.
B. Real property tax on classroom buildings owned by the school.
C. Real property tax on classroom buildings being rented by the school from private person.
D. Stock transaction tax
 D
110. Which of the following options is false on 5% expanded withholding tax on rental of real property?
A. Quarterly: BIR Form No. 1601EQ
B. Quarterly: Due date – On or before the end of the month following the close of the quarter
C. Monthly: Due date – on or before the 20th day following the close of the month.
D. Monthly: Due date – on or before the 10th day following the close of the month.
 C
111. King Macdonald ordered two (2) pieces chickenjoy with drinks in one Jollibee branch. The total amount due
is P120. Assuming that he is neither a PWD nor a senior citizen, how much is the value-added tax?
A. P 14.40 C. None E. None of the above
B. 12.86 D. Cannot be determined
 B
VAT (120 x 3/28)) P 12.86
112. The regular tax rate on a taxable domestic corporation is

A. 25% C. 30% E. None of the above
B. 20% D. 32%
 A
113. One of the main sources of fund that will be used to finance the Universal Health Care Law is
A. VAT on petroleum D. Customs duties
B. Excise tax on alcohol and tobacco E. None of the above
C. Real property tax
 B
114. Certificate of Accreditation of Printers engaged in printing services of official receipts, sales invoices and
other commercial receipts and/or invoices shall be valid for __ ______ from the date of issuance of the
Certificate of Accreditation
A. one (1) year C. three (3) years E. None of the above
B. two (2) years D. five (5) years
 D
115. The estate tax amnesty under RA 11213 applies to

A. Delinquent estate tax liabilities which have become final and executory and those covered by Tax
Amnesty on Delinquencies;
B. Properties involved in cases pending in appropriate courts and Involving violations of the Anti-Money
Laundering Act, as amended;
C. Estate of decedent/s who died on or before December 31, 2017, with or without assessments duly
issued therefor, whose estate tax/es have remained unpaid or have accrued as of December 31, 2017.
D. Properties involved in cases pending in appropriate courts and involving unexplained or unlawfully
acquired wealth.
 C
116. The Estate Tax Amnesty Return (ETAR) (BIR Form No. 2118-EA) shall be filed by the executor or
administrator, legal heirs, transferees or beneficiaries until
A. June 14, 2021 C. June 15, 2021 E. None of the above
B. June 14, 2023 D. June 15, 2023
 B
117. 13th month pay and other benefits is exempt up to a maximum amount of
B. 82,000 D. 92,000
 C
118. The BIR Form to be accomplished in filing VAT return for June 2019 is
A. 2550 M C. 2551 M E. None of the above
B. 2550 Q D. 1800
 B
119. If a nonresident citizen died May 1, 2018, which of the following items is deductible from his gross estate?
A. Standard deduction of P 5 million C. Judicial expenses
B. Medical expenses D. Funeral expenses
 A
120. Which of the following statements is FALSE?

A. An individual taxpayer is income tax exempt on the first P250,000 of his income.
B. A compensation income earner may opt to avail of the 8% income tax rate.
C. A professional income earner who avails of the 8% income tax is exempt from the payment of 1% non-
VAT.
D. An operator of cockpit cannot avail of the 8% income tax option even if its gross receipts during the
preceding year did not exceed P3 million.
 B
121. A non-stock and non-profit educational institution is subject to

A. income tax on income of activities that are not related to educational purpose.
B. customs duties on importation of equipment that are used in the exercise of its educational function.
C. real property tax on building that are being utilized as offices of the school administrators.
D. income tax on interest income on bank deposits that are reserved to fund the construction of school
buildings.
 A
122. Not subject to 6% capital gains tax
A. issuance of tax declaration without any sale, exchange or disposition.
B. transfer of ownership that resulted from sale, disposition of real property.
C. pacto de retro sales and other forms of conditional sales.
D. conveyance of real property located in the Philippines.
 A
123. The BIR Form to be used in the filing of percentage tax return on business by jeepney or bus operators
A. BIR Form No. 2550M C. BIR Form No. 2551M
B. BIR Form No. 2550Q D. BIR Form No. 2551Q
 D
124. Your client is planning to put up a sole proprietorship business in your city. He showed to you a shortlist of
government offices where he is planning to register the proposed business. Which of the following offices will
not register the proposed business?
A. Bureau of Internal Revenue C. Securities and Exchange Commission (SEC)
B. City Government D. Department of Trade and Industry (DTI)
 C
125. The following individuals are NOT required to file income tax return, except
A. An individual whose income tax has been correctly withheld by his employer, provided, that such
individual has only one employer for the taxable year – the Certificate of Withholding filed by the
respective Employers, duly stamped “Received” by the Bureau shall be tantamount to the substituted
filing of income tax returns by said employees.
B. An individual earning compensation income and income from profession.
C. An individual whose sole income has been subjected to final withholding tax.
D. A minimum wage earner.
 B
126. A sale of shares of stock which are not listed and traded in the stock exchange is subject to a tax rate of
A. ½ of 1% C. 6/10 of 1%
B. 15% D. 5%; 10%
 B
127. Taxable income for compensation earners is the gross compensation income less non- taxable
income/benefits such as the following, except
A. thirteenth (13th) month pay and other benefits up to P90,000.
B. de minimis benefits
C. personal and additional exemption
D. employee's share in the SSS, GSIS, PHIC, Pag-ibig contributions and union dues
 C
128. Which final tax rate is false?

A. Capital gains from sale of shares of stock not traded in the stock exchange - 15%.
B. Interest income received by an individual taxpayer (except a non-resident individual) from a depository
bank under the expanded foreign currency deposit system – 15%.
C. Royalty – 10%
D. Fringe benefit tax – 35%
 C
Lotto winnings amounting to not more than P10,000 is not taxable.
129. Chenie is a civil engineer who is engaged in private practice. Her total gross receipts amounted to
₱2,150,000 in 2018 while the cost of services and operating expenses were ₱850,000 and ₱600,000,
respectively.
Applying the better option, the income tax due on Chenie is -
A. P 105,000 C. P 169,500
B. 152,000 D. None of the above
 A
Graduated rates:
Less: Cost of services & expenses (850,000 + 600,000) 1,450,000

Tax on P400,000 P 30,000

300,000 x 25% 75,000
Tax due 105,000
8% income tax:
Gross receipts 2,150,000
Rate of tax 8%
Tax due 152,000
130. The ceiling on rice allowance as de minimis benefit is –

A. P1,000 per month C. P 2,000 per month
B. 1,500 per month D. 18,000 per annum
 C
131. Alegn Canu, an American employed in International Corporation in 2018, a Petroleum Service Contractor
received compensation income of ₱4,000,000 for 2021, inclusive of ₱400,000 13th month pay and other
benefits. The income tax due on Alegn Canu is
A. P1,101,200 C. P 586,500
B. 600,000 D. 300,000
 A
Gross compensation income P4,000,000

Less: 13th month pay and other benefits 90,000
Tax on P2,000,000 P 490,000

1,910,000 x 32% 611,200
Income tax due 1,101,200
132. Cabal, a Certified Tax Technician and BIR accredited tax practitioner, operates a “Wash-your-Car” business
while he offers tax services to clients. In 2021, his gross sales amounted to ₱825,000, in addition to his gross
receipts from bookkeeping services of ₱250,000. His recorded cost of goods sold and operating expenses
were ₱360,000 and P37,000, respectively.
If Cabal opted to avail of the OSD, the income tax due shall be
A. P 123,750 C. P 66,000
B. 78,750 D. 91,250
 D
Wash your Car business P 825,000

Bookkeeping services 250,000
Gross receipts 250000
Less: Deductions (1,075,000 x 40%) 430.000
Tax on P400,000 P 30,000

245,000 x 25% 61,250
133. The income tax due on Cabal if he signifies his intention to be taxed at 8% income tax rate
A. P 123,750 C. P 66,000
B. 78,750 D. 91,250
 C
Gross receipts P0
Less: Exemptions 250.000
Rate of tax 8%

A. If the taxpayer elects the 8% income tax option, his Financial Statements (FS) is not required to be
attached in the income tax return.
B. The amount of income for distribution of partners in a general professional partnership shall be net of
income tax due.
C. A taxpayer whose gross sales/receipts has exceeded P3,000,000 shall automatically be subject to the
graduated tax rates on income tax.
D. Partners of a General Professional Partnership (GPP) by virtue of their distributive share from GPP
which is already net of cost and expenses cannot avail of the 8% income tax rate option.
 B
General professional partnerships are income tax exempt.
135. A resident alien decedent was married at the time of death in 2018 and under the system of absolute
community of property regime. Among the properties in the gross estate was the family home consisting of:
Land, inherited during the marriage, market value P1,000,000
House built by the spouses on the inherited land 8,000,000
The deduction for family home is:
A. P9,000,000 C. P1,000,000
B. 5,000,000 D. 8,000,000
 B
Land, exclusive property P 1,000,000

House (8,000,000 x ½) 4,000,000
Deductible 5,000,000
136. Which of the following changes is not introduced on donor’s taxation by the TRAIN Law?
a. Provides extension for the filing of tax return.
b. Removes the exemption on dowries or gifts made on account of marriage.
c. Simplification of the tax rate.
d. Elimination of distinction on tax rate between relative and stranger donee.
 A
137. Donor A made the following donations to B, donee.
P 500,000 Fair market value of land, with an unpaid mortgage of P200,000, 50% of which shall be assumed by
B.
600,000 Car, with an agreement that the tax of P36,000 on the donation shall be assumed by B.
The net gift on the donation is -

A. P 1,100,000 C. P 934,000
B. 1,000,000 D. 834,000
 B
Land P 500,000
Car 600,000
Gross gift 1,100,000
Less: Mortgage (200,000 x 50%) 100,000
Net gift 1,000,000
138. Which statement is not correct? An individual whose sole income is the practice of profession receiving
annual gross receipts of P240,000 shall be
A. Taxable at 0% if he chooses the graduated income tax rate.

B. Not subject to withholding income tax if he chooses the graduated income tax rate.
C. Exempt from income tax but subject to 1% percentage tax if he chooses the 8% income tax option.
D. Not subject to withholding income tax if he chooses 8% income tax option.
 C
139. A withholding agent is not required to

A. Register the payee within ten days from the date of withholding.
B. Remit the tax withheld at the time prescribed by law and regulations.
C. Deduct and withhold tax from all money payments subject to withholding tax.
D. Furnish withholding tax certificates to recipient of income payments subject to withholding.
 A
140. The following pertains to an estate of a married decedent:
Gross estate (except RA 4917) P 7,000,000

RA 4917 300,000
Expenses, losses, indebtedness, taxes, etc. 1,000,000
How much is the net estate if the gross estate and the ordinary deductions are conjugal?
A. P 200,000 C. 6,000,000
B. 3,000,000 D. 1,000,000
 D
Gross estate, net of RA 4917 P 7,000,000

RA 4917 300,000
Gross estate 7,300,000
Less: Deductions
Ordinary deductions P 1,000,000
Special -
Standard deduction 5,000,000
RA 4917 300,000 6,300,000
Net estate 1,000,000
141. BIR Form No. 1701 must be filled-up in

A. Duplicate copies C. Quadruplicate copies
B. Triplicate copies D. Quintuplicate copies
 B
142. BIR Form 2550Q (for VAT) covering the second quarter (April – June) of 2018 must be filed not later than
A. June 20, 2018 C. July 20, 2018
B. June 25, 2018 D. July 25, 2018
 D
143. One of the following is not a documentary requirement in the issuance of a Tax Identification Number (TIN)
by an individual earning mixed income
A. Any identification issued by an authorized government body (e.g. Birth Certificate, passport, driver’s
license, Community Tax Certificate) that shows the name, address and birthdate of the applicant;
B. Photocopy of Mayor’s Business Permit;
C. DTI Certificate of Registration
D. BIR Form No. 1903
 D
BIR Form No. 1903 is used in the application for registration of corporations and partnerships.
144. A minimum wage earner had the following data during the year:
Annual salary P 53,000

Overtime pay 5,000
Holiday pay 4,000
The amount subject to tax is
A. None C. P 58,000
B. P 53,000 D. 62,000
 A
145. A minimum wage earner had the following data during the year:
Annual salary P 60,000

Other benefits 95,000
The amount subject to tax is

A. None C. P 145,000
B. P 5,000 D. 60,000
 B
Other benefits P 95,000

Less: Exempt 90,000
Taxable 5,000
146. Per Revenue Regulation No. 3-2019, the validity of Electronic Certificates Authorizing Registration (eCAR)
has been extended from
A. one year to two years C. six months to three years
B. three years to five years D. one year to five years
 B
147. Under this program, business operations of non-compliant taxpayers will be suspended and their
establishments will be temporarily closed if they will be found to have violated certain laws
A. OplanTokhang C. Oplan Double Barrel
B. Oplan Kandado D. Sarado Program
 B
148. If not disqualified, a tax informer who receives a reward shall be

A. subject to 10% final withholding tax of the reward collected.
B. subject to 10% final withholding tax of the revenue collected by the government.
C. subject to income tax based on the tax table for income tax.
D. exempt from income tax on the reward collected.
 A
149. A senior citizen is

A. subject to VAT on purchase of medicine from Mercury Drug.
B. entitled to 20% discount on foods ordered from a restaurant.
C. exempt from VAT and entitled to 20% discount on foods ordered in a restaurant.
D. not entitled to 20% discount if the ID card is issued by the PRC.
 C
150. A person with disability who is 60 years old shall

A. not be entitled to a 20% discount on cinemas.
B. be entitled to a maximum of 20% discount on foods ordered in a restaurant.
C. be entitled to 20% discount on airfare as a PWD and another 20% as a senior citizen.
D. be qualified as dependent for purposes of additional exemption.
 B
151. An account holder of a BPI savings deposit earned an interest of P1,000 on his deposit. If he decides to
withdraw the interest income, he will receive
A. P 1,000 C. P 800
B. 200 D. nothing
 C
Interest income P 1,000

Less: Tax (1,000 x 20%) 200
Net of tax 800
152. Which of the following options is false? Real property seized by the government on delinquent taxpayer
A. maybe redeemed within one year by paying in full the taxes, penalties, interests and administrative
costs incurred in the seizure and conduct of auction sale.
B. forfeiture shall become absolute, without further proceedings, after one (1) year from the date of the
execution thereof, unless redeemed.
C. shall be forfeited if during the auction sale, no bidder appeared or the highest bid offered is lower than
the minimum bid price.
D. shall be sold at public auction.
E. None of them
 E
Items 153 to 156:
The employees AB Company received the following fringe benefits from their employer in June 2021:
Chief Operating Officer (managerial employee) P 16,250
Two Supervisors, per person 3,900
Fifteen clerks and laborer, per person 3,000
153. The fringe benefits tax expense is

B. 20,150 D. 12,950
 D
To managerial employee P 16,250

To supervisors (3,900 x 2) 7,800
Monetary value 24,050
Divide by 65%
Grossed-up monetary value 37,000
FBT rate 35%
Fringe benefit tax expenses 12,950
154. The deductible fringe benefit expense is

B. 40,000 D. 34,000
 A
On managerial and supervisory employees P 37,000

On rank-and-files (P3,000 x 15) 45,000
Fringe benefits expense 82,000
155. The amount of fringe benefits tax withheld should be remitted by AB Company not later than
A. April 15, 2022 C. July 20, 2021 E. None of the above
B. July 10, 2021 D. July 31, 2021
 D
156. The remittance should be made thru

A. BIR Form 1601-FQ C. BIR Form 1602Q E. None of the above
B. BIR Form 1603Q D. BIR Form 1604CF
 B
Items 157 to 158:

Mr. See is an accountant who is engaged in public practice. Total gross receipts amounted to
₱2,250,000 for taxable year 2021. His recorded cost of service and operating expenses were ₱950,000 and
₱200,000, respectively.
157. What business tax is due on him if he decides to pay income tax based on the graduated rate?
A. Value-added Tax C. 3% Non-VAT E. None of the above
B. 1% Non-VAT D. None
 B
158. If Mr. See decides to avail of the 8% income tax option, the business due on him is
A. Value-added Tax C. 3% Non-VAT E. None of the above
B. 1% Non-VAT D. None
 D
159. Which statement is false? The certificate of zonal values of real properties for donor’s tax, estate tax and
capital gains tax purposes
A. shall not be issued by the BIR Regional Director.
B. shall be issued by the Revenue District Offices.
C. is subject to a Certification Fee of P100 and P15 documentary stamp tax.
D. None of the above
E. All of the above
 D
160. P20,000 cash dividend by a domestic corporation to a resident citizen is subject to a final withholding tax of
B. 4,000 D. None
 A
Final withholding tax (P20,000 x 10%) P 2,000
161. A 2022 interest on foreign currency deposit under the expanded currency deposit system is subject to a final
withholding tax rate of
A. 20% C. 15% E. None of the above
B. 10% D. 7.5%
 C
162. A real property owner owns a 200 square meter residential land in Manila. The market value in the tax
declaration is P5,000 per square meter while the zonal value is P4,000 per square meter. If the ordinance
of the city fixes an assessment level of 18% and a basic tax rate of 1.5%, the annual property tax payable is
B. 2,700 D. 2,400
 A
Market value (200 sq m x P5,000) P 1,000,000

x Assessment level 18%
Assessed value 180,000
x Tax rate 1.5%
Basic tax 2,700
Add: SEF (180,000 x 1%) 1,800
Real property tax 4,500
163. Atin Corp is a domestic corporation which is engaged in a grocery business. In filing its annual income tax
return it should use BIR Form
A. 1701 C. 1702 - EX
B. 1702 - RT D. 1703
 B
164. Which of the ceilings on the following de minimis benefits is correct?

Rice subsidy Uniform allowance
A. P 1,200 P 3,000
B. 1,000 4,000
C. 2,000 6,000
D. 1,500 5,000
 C
165. Dividends from a domestic corporation and/or share in the net income of a taxable partnership received by
a nonresident alien NETB is subject to a final tax of
A. 25% C. 20%
B. 30% D. 10%
 A
166. The minimum corporate income tax (MCIT) is based on –

A. 2% of gross income C. 5% of gross income
B. 1% of gross income D. 15% of gross income
 B
167. ABC Corporation gave a fringe benefit to Benny, one of its employees. The benefit given shall not be
subject to fringe benefits tax if Benny is a -
A. Utility worker C. General manager
B. Accounting supervisor D. CEO of the corporation
 A
168. Nicolai Sikursky, Ukrainian, died in the Philippines. The properties situated in his own country will not be
subject to estate tax if he was a -
A. Resident citizen C. Resident
B. Resident alien D. Nonresident
 D
169. A business establishment becomes subject to VAT if its gross receipts during the 12-month period exceeds
A. P 1,500,000 C. P 3,000,000
B. 1,991,500 D. 9,191,500
 C
170. Bay purchased a machine from Cel. He was issued documents relative to the transaction. If they are both
VAT registered, which of the following documents will entitle him to claim input tax on the purchase?
A. Acknowledgment receipt C. Sales invoice
B. Delivery receipt D. Collection receipt
 C
171. On the certificate of exemption from income tax, a non-stock, non-profit educational institution is
A. required to renew every 3 years
B. required to renew every year
C. required to renew every 5 years
D. perpetual unless recalled for valid grounds.
 D
172. Which is the best option? BIR Form 1701 (Annual Income Tax Return for Self-Employed Individuals) shall
be filed and the tax be paid not later than April 15 every year. Assuming April 15 falls on a Saturday
A. the return shall be filed and the tax paid on the following day.
B. the return shall be filed and the tax paid on Monday.
C. the return shall be filed and the tax paid on Sunday
D. the return shall be filed and the tax paid on the following business day.
 D
173. Transport fares of PWDs are net of VAT and 20% discount on the following common carriers, except
A. Airplane C. Cruise
B. Roro D. Bus
 D
174. If the bus fare from Naga City to Manila is P1,000, how much should a PWD pay to the bus conductor?
A. P1,000 C. P 714
B. 800 D. Cannot be determined
 B
Bus fare P 1,000

Less: Discount (1,000 x 20%) 200
Payable 800
175. Which of the following is not a basis in computing capital gain tax on sale of real property?
A. Zonal value C. Assessor’s value
B. Selling price D. Book value
 D
176. All taxpayers with the following transactions are directed to secure a TIN prior to their application for eCAR:
A. Real Property Tax – TIN of owner C. From employment – TIN of income earner
B. Estate Tax – TIN of executor D. Sale of Shares of stock – TIN of buyer/s
 B
177. A decedent non-resident alien is not subject to estate tax on

A. Real property situated in the Philippines C. Residential house abroad
B. Car registered in the Philippines D. Shares of stock in a domestic corporation
 C
178. Which of the following is not subject to a creditable withholding tax?

A. Non-licensed professional deriving gross receipts above P100,000 in any 12-month period and/or
SMW rates from lone payor
B. Rental income on real property
C. Royalty on books
D. Professional receiving income from multiple payors and/or other source of income.
 C
Royalties are subject to final withholding tax.
179. Lagot Corporation operates different branches in Luzon. The managers being assigned in the branch
offices usually come from the main office in Santiago City. Because of this practice, it usually leases
residential houses for the branch managers. During the year, the corporation paid monthly rental of P9,520
for the residential house in Angeles City. How much is the fringe benefit tax per month on the fringe
benefits furnished to its branch manager in Angeles City.
A. P 2,563 C. P 3,046
B. 2,240 D. None
 A
Taxable value (P 9,520/65% x 50%) P 7,323.08

x Rate 35%
Fringe benefit tax 2,563.08
180. The fringe benefits tax is not imposable if the employee is

A. Managerial C. Rank-and-file
B. Supervisory D. All of them
 C
Only the fringe benefits given t0 managerial and supervisory employees are subject to fringe benefit tax.
181. Effective January 1, 2018, the tax rate for estate taxation shall be
A. 10% C. 6%
B. 30% D. graduated
 C
182. Effective January 1, 2018, individual income taxpayers shall be exempt on Other Benefits not exceeding
A. P 82,000 C. P 30,000
B. 100,000 D. 90,000
 D
183. Effective January 1, 2018 individual income earners shall be exempt on income not exceeding
A. P 40,000 C. P 200,000
B. 250,000 D. 25,000
 B
184. Under the TRAIN Law, Standard Deduction in estate taxation shall be
A. P1,000,000 C. P 10,000,000
B. 5,000,000 D. retained
 B
185. Documentary stamp tax on sale of real property is 1.5% of the tax base. If the selling price on the sale is
P4,000,000, while the zonal value is P2,000,000 and the listed value in the tax declaration is P2.5 million,
the documentary stamp tax payable is
A. P 60,000 C. P 37,500
B. 30,000 D. 240,000
 A
Documentary stamp tax (P4 M x 1.5%) P60,000
186. In the preceding question, the capital gain tax payable is

A. P 240,000 C. P 150,000
B. 120,000 D. 60,000
 A
Capital gains tax (P4 M x 6%) P240,000
187. In the preceding question, if the buyer wants to register the property in his name he must apply for transfer
of title with the
A. Bureau of Internal Revenue. C. Register of Deeds.
B. City/Municipal Assessor’s Office. D. Bureau of Lands.
 C
188. If the buyer pays P 504 for an article from a VAT seller, the amount of VAT added by the seller on the value
of the article is
A. P 4.00 C. P 60.48
B. 104.00 D. 54.00
 D
Amount paid (P504 x 3/28) P 54
189. Monthly bills charged on post-paid subscribers of mobile phone services by telcos are subject to
A. Franchise Tax C. Value-added Tax
B. Overseas Communications Tax D. Sales Tax
 C
190. An employee who wants to update his personal information must submit BIR Form No.
A. BIR Form No. 2316 C. BIR Form No. 1604-CF
B. BIR Form No. 1700 D. BIR Form No. 2305
 D
191. Fees, allowances, per diems and other form of income payments of P30,000 per month to non-
professionals hired by government under a job order or memorandum of agreement are subject to
Expanded Value-added Tax

Withholding Tax
A. Yes No
B. Yes Yes
C. No Yes
D. No No
 D
192. This is a common requisite for tax exemption of separation benefits received by an official or employee if
terminated by his/her employer due to installation of labor-saving device, redundancy and retrenchment,
A. That the selection of employees to be terminated has been made in accordance with a fair and
reasonable criteria.
B. That there has been an introduction of machinery, equipment or other devices, with brief description of
the use of said machinery, equipment or device;
C. That the positions or services are in excess of what is reasonably demanded by the actual
requirements of the enterprise to operate in an economical and efficient manner.
D. That the losses, if already incurred, are not merely de minimis, but substantial, serious, actual and
real, or if only expected, are reasonably imminent, with appropriate supporting evidence of said
losses.
 A
193. Romeo insured the lives of his sixty (60) employees under group insurance with Philippine Prudential
Insurance Company. Which of the following statements is false?
A. If the beneficiary is the employer, Romeo cannot claim the amount of premiums paid as deduction
from his gross income.
B. If an employee dies, the amount of proceeds shall not be subject to estate tax.
C. If an employee dies, the proceeds shall be subject to income tax if the beneficiary is the estate of the
employee.
D. If an employee dies, the proceeds shall neither be subject to income tax nor estate tax.
 C
194. How many statement/s is/are correct?

I. A "sales or commercial invoice" is a written account of goods sold or services rendered indicating the
prices charged therefor or a list by whatever name it is known which is used in the ordinary course of
business evidencing sale and transfer or agreement to sell or transfer goods and services.
II. A "receipt" is a written acknowledgment of the fact of payment in money or other settlement between
seller and buyer of goods, debtor or creditor, or person rendering services and client or customer.
III. A VAT invoice is the seller's best proof of the sale of goods or services to the buyer, while a VAT receipt
is the buyer's best evidence of the payment of goods or services received from the seller. A VAT invoice
and a VAT receipt should not be confused and made to refer to one and the same thing.
A. One only, consisting of Statement 1.

B. Two only, consisting of Statements 2 and 3.
C. All statements.
D. Two only, consisting of Statements 1 and 2.
 C
Questions 195 – 197:

Given the following data during the first quarter of the current year:
Month Output Tax Input Tax
January P 20,000 P 15,000
February 40,000 22,000
March 50,000 10,000
In the books of the taxpayer, there was a debit balance of input tax of P8,000 in the last quarter of the
preceding year.
195. The VAT payable in January is –
A. P (3,000) C. P 0
B. 5,000 D. 3,000
 C
Output tax P 20,000

Less: Input tax P 15,000
Input tax carry-over 8,000 23,000
VAT payable 0
196. The VAT payable in February is –

A. P 18,000 C. P 10,000
B. 15,000 D. None
 B
Output tax P 40,000

Less: Input tax P 22,000
Input tax carry-over 3,000 25,000
VAT payable 15,000
197. The tax still payable that must appear in BIR Form 2550Q (quarterly return) is -
A. P 55,000 C. P 40,000
B. 63,000 D. 53,000
 C
Output taxes, 1st quarter:

January P 20,000
February 40,000
March 50,000 P110,000
Less: Input taxes
Jan – Mar (15,000 + 22,000 + 10,000) 47,000
VAT paid, February 15,000
Input tax carry-over 8,000 0
VAT payable 40,000
198. Which of the following information must not appear in the face of a Sales Invoice of a non-VAT business?
A. Date of issuance and number of the Authority to Print issued by the BIR.
B. Name, address and amount paid by the payor.

C. Name of printer and BIR Accreditation Number.
D. The amount of VAT, net of VAT and the total invoice price.
 D
199. Manny, a managerial employee, received a fringe benefit of P 50,000 cash from its employer corporation.
The fringe benefit tax is –
A. P26,923.07 C. P12,669.68
B. 23,529.41 D. Exempt
 A
Grossed-up monetary value (50,000 / 65%) P 76,923.07

x Rate of tax 35%
Fringe benefit tax 26,923.07
200. One of the following is not an acceptable mode/instrument of paying tax with an Accredited Agent Bank
(AAB):
A. Over-the-Counter Cash Payment C. Bank debit system
B. Credit/Debit card D. Post-dated check
 D
201. Which of the following is subject to real property tax?

A. Building owned by a private person and being leased to a private educational institution for use as
classroom of the students.
B. Building owned by a private person and being leased to a private educational institution for use as
offices of the school administrators.
C. Building owned by a private school and being leased to a private person for use as a business
establishment.
D. Building which is being occupied as a church by a certain religious sect.
 C
202. An individual taxpayer had the following data on income during the period:
Rent income on real property P 48,000

Interest on peso bank deposit 2,000
Dividend from A Corp., domestic 40,000
Professional income as management consultant
(current year’s gross income is P600,000) 80,000
Tax informer’s reward 30,000
Assuming that the foregoing amounts are gross of withholding taxes, how much is the total amount of
final withholding tax?
A. P 7,400 C. P 15,400
B. 11,300 D. 4,400
 A
Interest (2,000 x 20%) P 400

Dividend (40,000 x 10%) 4,000
Reward (30,000 x 10%) 3,000
Total 7,400
203. King sold 1,000 square meters of lot with a residential house thereon for P5 million. The fair market value
in the tax declaration of the lot is P1.5 million and the house is P3 million. The land had a zonal value of
P4,000 per square meter.
How much is the capital gains tax?
A. P 300,000 C. 210,000
B. 420,000 D. None, because it is an ordinary asset
 B
Lot (P4,000 x 1,000) P 4,000,000

House 3,000,000
Base 7,000,000
x Rate 6%
Capital gain tax 420,000
204. A parcel of land was assessed as commercial with a rate of 45% on assessment level, with a fair market
value of P3,000,000 although the zonal value is P3,200,000. What will be the annual basic real property
tax if the tax rate in the local government unit is 1.5%?
A. P 1,350,000 C. 20,250
B. 1,440,000 D. 21,600
 C
Market value P 3,000,000

x Assessment level 45%
Assessed value 1,350,000
x Basic tax rate 1.5%
Basic tax 20,250
205. In the preceding question, how much is the total annual real property tax on the land?
A. P 20,250 C. 33,750
B. 13,500 D. 36,000
 C
Basic tax P 20,250

Special education fund (1,350,000 x 1%) 13,500
Total 33,750
206. On a sale of real property classified as capital asset, the tax that will be imposed is
A. Creditable withholding tax C. Value-added tax
B. Capital gains tax D. Transfer tax
 B
207. A multi-millionaire donated to his childhood friend a commercial land with a market value in the tax
declaration of P800,000 and zonal value of P1 million. How much is the donor’s tax?
A. P 45,000 C. 44,000
B. 60,000 D. 300,000
 A
Zonal value P 1,000,000

x Rate of tax 6%
Tax due 45,000
208. BIR Form No. 1700 must be filled-out in

A. Duplicate copies C. Quadruplicate copies
B. Triplicate copies D. Quintuplicate copies
 B
209. A taxpayer is not qualified to avail of the substituted filing of income tax return if
A. Receiving purely compensation income.
B. Working for only one employer in the Philippines and he has no other income for the calendar year.
C. The tax has been withheld correctly by the employer (tax due equals tax withheld)
D. The spouse is not qualified to avail of the substituted filing and they are filing jointly.
 D
210. A person with disability is

A. subject to VAT on purchase of medicine from Mercury Drug.
B. entitled to 20% discount on foods ordered from a restaurant.
C. exempt from VAT and entitled to 20% discount on foods ordered in a restaurant.
D. not entitled to 20% discount if the ID card is issued by the PRC.
 C
211. All of the following, except one, are taxable on income derived from sources within the Philippines only
A. Resident alien C. Resident citizen
B. Nonresident citizen D. Nonresident alien
 C
212. Cathay Pacific Airways Corporation is subject to the following tax in the Philippines
A. Income tax of 2.5% of gross Philippine billings.
B. VAT on carriage of passengers on outgoing flight.
C VAT on carriage of cargo on outgoing flight.
.
D VAT on carriage of passengers on incoming flight.
.
 A
213. One of the following is subject to the 3% percentage tax

A. Establishments with annual gross sales or receipts exceeding P3,000,000 and which are VAT
registered.
B. Businesses with annual gross receipts or sales exceeding P P3,000,000 and which are not VAT
registered.
C. VAT registered establishments with annual gross receipts of not exceeding P3,000,000
D. Establishments in which the annual gross sales do not exceed P3,000,000 and are not VAT registered.
 D
214. The income subject to this withholding tax is not includible in the computation of taxable income
A. Withholding tax on compensation income
B. Creditable withholding tax
C. Final withholding tax
D. All of the above
 C

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CTT EXAMINATION REVIEWER (MULTIPLE CHOICE QUESTIONS) PAGE B - 1

COMPILATION OF MULTIPLE CHOICE QUESTIONS

2. Decedent, died January 10, 2018 had the following data:

The estate tax payable is

5. The following is a zero-rated sale of services

A. Transport of passengers by Cebu Pacific from the Philippines to Singapore.

7. In the preceding problem, if the year of operation is 3 rd quarter of 2023, it is subject to

8. In Question 7 above, the taxpayer shall be required to pay the tax on a

B. 3% non-VAT. D. VAT and income tax.

Until 12/31/17 Effective 1/1/18 Until 12/31/17 Effective 1/1/18

16. Which of the following is false about a Tax Identification Number?

20. The following pertains to the data of a resident alien:

Limit, maximum P200,000

22. BIR Form No. 1702-RT must be filled-out in

24. Which of the following statements is false?

25. A non-stock and non-profit educational institution is subject to

A. VAT Registration with Tax Identification Number (TIN)

Child Former girlfriend Child Former girlfriend

Over Not over Tax Plus Of excess over

P 250,000 400,000 20% - P 250,000

Tax on P800,000 P 130,000

Over Not over Tax Plus Of excess over

P 250,000 400,000 15% - P 250,000

Tax on P800,000 P 102,500

39. Distinctions between donor’s tax and estate tax, except

40. The VAT rate is not

43. Which final tax rate is false?

44. Which of the following corporations is taxable?

D. Home Development Mutual Fund (Pag-ibig)

45. Which ceiling on the following de minimis benefits is not correct?

46. The ceiling on rice allowance as de minimis benefit is –

48. A minimum wage earner is not exempt from

Commission is a taxable compensation income.

Basic pay P 220,000

50. Which of the following statements is not correct?

A. Supplementary compensation income includes payments to an employee in addition to the regular

Basic salary (P30,000 x 11) P 330,000

Income earned P 450,000

A. P 80,000 C. P 55,000 E. None of the above

Compensation income P 600,000

Tax on P 400,000 P 22,500

Items 54 and 55:

Gross sales – store P 680,000

Total gross receipts P1,180,000

Tax on P400,000 P 30,000

56. Which of the following statements is false?

Selling price P 80,000

60. Which of the following donations result to a net gift of P80,000?

Gross gift P 180,000

Gross gift P 2,000,000

Tax due 105,000

63. If the decedent was a resident of Australia, the standard deduction is

The estate of a nonresident alien is entitled to claim a standard deduction of P500,000.

Tax due P 25,000

Gross receipts on lease of

B. Marginal income earners

69. Exemptions from VAT is limited to the following, except

VAT registered establishments cannot avail of the 8% income tax option.

Output tax (2,600,000 x 12%) P 312,000 Sales P 2,600,000

Tax on P250,000 Exempt

Fringe benefit expense (16,250/65%) P 25,000

Market value P 850,000

Gross gift (10,000 x P100) P1,000,000