No. 125 Brgy.

San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

ICARE BATCH 6 Joshua- Final preboard TAXATION

1. Bank Alpha deposited money with Bank Bebe which earns interest that was subjected
to the 20% final withholding tax. At the same time, Bank Alpha is subject to the 5%
gross receipts tax on its interest income on loan transactions to customers. Which
statement below incorrectly describes the transaction?
a. There is double taxation because two taxes – income tax and gross receipts tax
are imposed on the interest income described above, and double taxation is
prohibited under the 1987 Constitution.
b. There is no double taxation because the first tax is income tax, while the second
is a business tax.
c. There is no double taxation because the income tax is on the interest income of
Bank Alpha on its deposits with Bank Bebe (passive income), while the gross
receipts tax is on the interest income received by Bank Alpha from loans to its
debtor-customers (active income).
d. Income tax on interest income of deposits of Bank A is a direct tax, while GRT
on interest income on loan transaction is an indirect tax.

2. Mac & Me Inc. was issued its certificate of incorporation on December 28, 2020. Noting
that on the same day, the said corporation has been registered with the Bureau of Internal
Revenue and issued its Tax Identification Number (TIN). On January 1, 2021, it had its
first ever commercial transaction. Considering the foregoing, it shall be required to
compute and pay Minimum Corporate Income Tax (MCIT), if higher than normal tax,
beginning the taxable year:
a. 2021
b. 2022
c. 2023
d. 2024

3. The Secretary of Finance, upon recommendation of the Commissioner of Internal

Revenue, issued a Revenue Regulation using gross income as the tax base for
corporations doing business in the Philippines. Is the Revenue Regulation valid?
a. Yes, the Secretary of Finance has the power to issue rules and regulations.
b. Yes, gross income taxation over corporations is valid.
c. No, Secretary of Finance has virtually amended the NIRC.
d. No, only the Commissioner of the BIR has the authority to make revenue rules and
regulations.

4. Which theory in taxation states that without taxes, a government would be paralyzed
for lack of power to activate and operate it, resulting in its destruction?
a. Power to destroy theory
b. Sumptuary theory
c. Lifeblood theory
d. Symbiotic doctrine

5. Which of the following statements is wrong?

a. The power of taxation may be exercised by the government, its political
subdivision, and public utilities;
b. Generally, there is no limit on the amount of tax that may be imposed;
c. .The money contributed as tax becomes part of the public funds;
d. The power of tax is subject to certain constitutional limitations.

6. The following are similarities among the Fundamental Powers of the State, except:

a. They can be abolished by the Constitution.

b. They constitute the three methods by which the State interfered with private property
rights.
c. Each presupposes an equivalent compensation to the inhabitants.
d. The emergence of the State carries with it these fundamental powers.

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

7. Statement 1: Taxes are important because they are the lifeblood of the government
and so should be calculated without unnecessary hindrance.
Statement 2: The legislature, in adopting measures to implement our tax laws wants to
be assured that taxes are paid and collected without delay.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect

8. Raising revenue is the primary purpose of taxation, which of the following is not one of
the secondary purposes of taxation:
a. Reduction of social inequality
b. Encourage economic growth by granting incentives and exemptions
c. Promotion of general welfare
d. Protection of foreign interests

9. The minimum corporate income tax is imposed on…

a. Proprietary educational institution.
b. Corporations enjoying special tax regime under the PEZA law.
c. Business partnerships
d. Non-profit hospital

10. The following income are subject to final tax, except:

a. Royalty income received by a domestic corporation from another domestic
corporation.
b. Cash dividend received by a domestic corporation from a resident foreign
corporation.
c. Cash dividends received by a domestic corporation from another domestic
corporation.
d. Interest income received by a resident foreign corporation from a Philippine bank.

11. A corporation may employ as a basis for filing its annual corporate income tax return:
a. Calendar year only which begins January 1 and ends December 31.
b. Fiscal year only which could be any day within the calendar year at the discretion of
the corporation.
c. Either fiscal year or calendar year at the discretion of the corporation.
d. Fiscal year only which coincides on the day of registration with the BIR.

12. A corporation should file its quarterly return within.

a. 30 days following the end of each of the first three quarters of the taxable year.
b. 60 days following the end of each of the first three quarters of the taxable year.
c. 60 days following the end of each of the 4 quarters of the taxable year.
d. 30 days following the end of each of the 4 quarters of the taxable year.

13. A corporation on a fiscal year ending March 31, should file its annual income tax
return:
a. On or before April 15 of the same year.
b. On or before April 15 of the following year.
c. On or before July 15 of the same year.
d. On or before July 15 of the following year.

14. Which of the following may be subject to corporate income tax:

a. Non-stock and non-profit educational institution.
b. A public educational institution.
c. A private educational institution.
d. Local water district

15. Joey and Bret, both unmarried, formed a general professional partnership. The
partners agreed to share profits equally. During the year 2022, the partnership earned
a net income of Php500,000. Bret, also engaged in the business of buying and selling
cars, reports net income from his business amounting to Php750,000. The income tax
liability of the partnership is:
a. Php150,000
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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

b. Php160,000
c. Php0
d. Php125,000

16. Abe and Kaye, both unmarried, formed a general professional partnership. The
partners agreed to share profits equally. During the year 2020, the partnership earned
a net income of Php500,000. Kaye, also engaged in the business of buying and selling
cars, reports net income from her business amounting to Php750,000., Kaye’s taxable
income shall be:
a. Php750,000
b. Php1,000,000
c. Php875,000
d. Php500,000

17. The share in the profits of a partner in a partnership is regarded as received by him
and thus taxable although not yet actually distributed. This principle is known as:
a. Advance reporting of income
b. Accrual method of recognizing income
c. Actual receipt of income
d. constructive receipt of income

18. The following are exempt from the VAT, except.

a. Sale of 1 sack of rice.
b. Sale of lechon manok
c. Sale of pet food
d. Sale of newspaper

19. One of the following does not result to output tax:

a. Domestic sale of goods;
b. Cash receipt on sale of services rendered in the Philippines
c. Export sale of goods;
d. Cash receipt on sale of services rendered outside of the Philippines.

20. The Value-added tax is not an/a:

a. Direct tax
b. Indirect tax
c. excise tax
d. ad-valorem tax

21. Presumptive input VAT shall be available to the following, except:

a. Sardines
b. Tuna
c. Milk
d. Cooking oil

22. Transitional input VAT shall be:

a. Actual input VAT on the beginning inventory.
b. 2% of the value of the beginning inventory.
c. The higher between actual input VAT on the beginning inventory or 2% of the value
of the beginning inventory.
d. The lower between actual input VAT on the beginning inventory or 2% of the value
of the beginning inventory.

23. Which statement is correct?

a. Zero rated sale and effectively zero rated sales are the same.
b. A person whose sales or receipts do not exceed P3,000,000 is exempt from VAT
and OPT.
c. A non-VAT registered person who issues a VAT invoice is nevertheless subject to
VAT on the said transaction.
d. Entity which are exempt from income tax are also exempt from VAT.

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

24. Statement 1: Vanishing deduction is always a deduction from the exclusive properties
under the regime of conjugal partnership of gains.
Statement 2: Vanishing deductions is always a deduction from the exclusive
properties under the regime of absolute community.
a. Both statements are correct.
b. Both statements are incorrect.
c. Only the first statement is correct.
d. Only the second statement is correct.

25. Arnaldo, citizen and resident of China, died on October 17, 2021. He left behind
included in his gross estate shares of stocks of San Miguel Corporation, a domestic
corporation. The aforementioned shares of stocks were inherited on November 17,
2020. What percentage of deduction will be used in computing his allowable vanishing
deduction?
a. 80% of the value taken as basis of vanishing deduction;
b. 100% of the value taken as basis of vanishing deduction;
c. 60% of the value taken as basis of vanishing deduction;
d. 40% of the value taken as basis for vanishing deduction.

26. Three of the following are subject to the value-added tax. Which is the exception?
a. Sales or importation of pet foods.
b. Sale by a non-VAT registered person who issued a VAT receipt.
c. Receipts from leasing of real properties with a monthly rental of P12,000 per unit.
Whereby the lessor has 50 units for lease.
d. Importations by persons who are not VAT registered.
27. Which of the following is subject to income tax:
a. SSS and GSIS
b. Philippine Health Insurance Corporation
c. Professional Regulation Commission
d. Philippine Amusement and Gaming Corporation

28. In 2022, Crop Incorporated, a domestic corporation, declared dividend to its

stockholders. Which among the following statements is false:
a. Non-resident citizen stockholder shall be subjected to 10% final tax on the dividend
income.
b. Non-resident alien engaged in trade or business stockholder shall be subjected to
20% final tax.
c. Non-resident foreign corporation stockholder shall be subjected to 15% final tax,
generally.
d. Resident citizen stockholder shall be subjected to 10% final tax.

29. Dividend from a domestic corporation or share in the distributable income after tax of a
taxable partnership received by a citizen shall be subjected to the final tax rate of:
a. 10%
b. 15%
c. 20%
d. 25%

30. The following transactions are subject to the Value-added tax, except:
a. Domestic carrier by land with respect to their gross receipts from the transport of
passengers .
b. Domestic carrier by air and sea on their gross receipt from their transport of
passengers from one place in the Philippines to another place in the Philippines.
c. Domestic carrier by air and sea on their gross receipt from their transport of
passengers from one place in the Philippines to another place outside of the
Philippines.
d. Domestic carrier by land with respect to their gross receipts from the transport of
cargoes and goods.

31. The sale of the following real properties are subject to the VAT except:
a. Residential lot, held for sale in the ordinary course of business, sold for P1,600,000
b. Parking lot, held for sale in the ordinary course of trade, sold for P700,000
c. Sale of real property used in the ordinary course of business.
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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

d. Sale of residential house and lot, in the ordinary course of business, for P2,000,000.

32. Ka Pedring Matibag, a sole proprietor, buys and sells “kumot at kulambo” both of which
are subject to value-added tax. Since he is using the calendar year as his taxable year,
his taxable quarters end on the last day of March, June, September, and December.
When should Ka Pedring file the VAT quarterly return for his gross sales or receipts for
the period of June 1 to September 30?
A. Within 25 days from September 30
B. Within 45 days from September 30
C. Within 15 days from September 30
D. Within 30 days from September 30

33. Three of the following are exempt or excluded from the donor’s tax. Which is the
exception?
a. P 2,000,000 cash given by a resident alien donor to his legitimate son who is
getting married in the Philippines to a Filipina.
b. P 1,000,000 cash given by a nonresident alien donor to his legitimate son who is
getting married in the Phils.
c. Donation of a condominium in Hongkong to a Filipina by a British national not
residing in the Phils.
d. P 150,000 donation to the Integrated Bar of the Philippines

34. Statement 1: Josefa, who was a Filipino citizen, died, leaving behind a gross estate
whose fair market value at the time of her death was P1,200,000. Her estate is not liable
to pay estate tax. Statement 2: Marcus, a citizen and resident of Italy, donated to the red
cross of the Philippines his car, which he specified to be used only by the General
Manager of the charitable institution. Marcos, may claim deduction on the said gift.
a. True, True
b. True, False
c. False, False
d. False, True

35. Generally, the following capital assets are subject to donor’s tax in case there is a
transfer for less than adequate and full consideration, except:
a. Real property
b. Intangible Property
c. Personal property
d. Tangible property

36.Monthly VAT declaration is filed on or before the:

a. 10th day from the end of each month.
b. 20th day from the end of each month.
c. 25th day from the end of each month.
d. 30th days from the end of each month.

37. Felix Buck, at his residence, regularly sells wines, whiskies and cigarettes which he
has imported from the United Kingdom. He is liable for the payment of the following
taxes:
a. Excise tax, VAT and OPT.
b. Excise tax, VAT and income tax.
c. VAT, OPT and income tax.
d. Excise tax, income tax and amusement tax.

38. Dr. Albert Rebosa, a VAT registered ob-gyne specialists, owns a maternity-lying-in
clinic. During the Month his clinic received payment totaling P750,000, broken down as
follows: P350,000 as Dr. Rebosa’s professional fee; and P400,000 as payment for the
use of his maternity lying-in-clinic facilities. All amounts given are exclusive of the VAT.
His output VAT for the month is.
a. Php90,000
b. Php48,000
c. Php42,000
d. Php80,357.14

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

39. Statement 1: Banks are subject to the VAT on its interest income. Statement 2:
Resident international carriers are subject to the 0% VAT on its gross Philippine
billings on flight originating from the Philippines to a foreign destination.
a. Both statements are correct.
b. Both statements are incorrect.
c. Only the first statement is correct.
d. Only the second statement is correct.

40. Statement 1 - In case of VAT exempt goods sold locally to a VAT registered customer,
the VAT due on such product shall be allowed as input VAT creditable against output
VAT of the said customer. Statement 2 – Export sale by a VAT registered person shall
be subjected to the 0% VAT. On the other hand, export sale by a non-VAT registered
person shall be VAT exempt.
a. True, True
b. False, True
c. False, False
d. True, False

41. On April 17, 2022, Megablok Realty Inc, a condominium developer and seller sold one
of its condominium unit for Php3,000,000. The terms of payment are as follows:
April 17, 2012 Downpayment Php750,000
April 17, 2013 2ND Installment Php750,000
April 17,2014 3rd Installment Php750,000
April 17, 2015 Final installment Php750,000
The Output VAT to be reported on the second quarter of 2022 is:
a. Php360,000
b. Php 0
c. Php90,000
d. Php321,428

42. The income tax due of a mixed income earner who opted to be taxed at 8% income tax
rate shall be:
I. The tax due from compensation, computed using the graduated tax rate.
II. The tax due from self-employment and/or practice of profession, resulting from the
multiplication of the 8% income tax rate with the total of the gross sales/receipts and
other non-operating income.
III. The tax due from compensation and from self-employment and/or practice of
profession, resulting from the multiplication of the 8% income tax rate.
a. I only
b. III only
c. II only
d. I and II only

43. Which of the following statements on the 8% income tax rate is incorrect?
a. The Financial Statements (FS) is not required to be attached in filing the final income
tax return.
b. Existing rules and regulations on bookkeeping and invoicing/receipts shall still apply.
c. The income tax is in lieu of the graduated rates of income tax and percentage tax
under Section 116 of the Tax Code.
d. None of the above

44. Aileen, a VAT registered person, bought garments from CUA Corp., likewise a VAT
registered person. She bought the goods from CUA Corp at Php90,000 and she was
able to export the said goods at a sale price of Php100,000. Both amounts given are
exclusive of the VAT. The output VAT on Aileen’s export sale is:
a. Php1,200
b. Php12,000
c. Php0, because subject to 0% VAT;
d. Php0, because exempt.

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

45. The following decedent’s estate are subject to estate tax on their worldwide estate,
except:
a. Resident-Citizen
b. Non-resident citizen
c. Resident Alien
d. Non-resident Alien

46. Statement 1: All taxpayers who are exempt from the VAT are required to pay 3%
percentage tax. Statement 2. Sale of life insurance by a person who is VAT registered
is subject to the VAT.
a. True, true
b. True, false
c. False, true
d. False, False

47. The Madness incorporated reported the following for the 3 rd quarter of the taxable year
(Reported figures are exclusive of the VAT):
Domestic Sale of Furniture Php7,000,000
Export Sale of Furniture Php3,000,000
Purchases relating to domestic sale Php3,000,000
Purchases related to export sale Php2,000,000
Purchases for both domestic and export sale Php2,000,000

The amount of input vat that could be converted into Tax Credit Certificate or refunded
amounts to:
a. Php0
b. Php840,000
c. Php528,000
d. Php312,000

48. The Madness incorporated reported the following for the 3 rd quarter of the taxable year
(Reported figures are exclusive of the VAT):
Domestic Sale of Furniture Php7,000,000
Export Sale of Furniture Php3,000,000
Purchases relating to domestic sale Php3,000,000
Purchases related to export sale Php2,000,000
Purchases for both domestic and export sale Php2,000,000

The VAT payable for the quarter, if Madness Inc. decides to claim as credit against
output all available input VAT.
a. Php0*
b. Php840,000
c. Php528,000
d. Php312,000

49. 1st Statement: Gain on sale of all kinds of capital assets are subject to the final tax on
capital gains. 2ndstatement: Gain from sale of real property classified as capital asset
and located in Miami, Florida is not subject to the final tax on capital gains.
a. true, true;
b. true, false;
c. false, false;
d. false, true;

50. The Secretary of Finance, upon recommendation of the Commissioner of Internal

Revenue, issued a Revenue Regulation using gross income as the tax base for
corporations doing business in the Philippines. Is the Revenue Regulation valid?
A. Yes, the Secretary of Finance has the power to issue rules and regulations.
B. Yes, gross income taxation over corporations is valid.
C. No, Secretary of Finance has virtually amended the NIRC, which is beyond the
power of the executive to do.
D. No, only the Commissioner of the BIR has the authority to make revenue rules
and regulations.

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

51. Who among the following is taxed on his worldwide income?

a. Resident citizen.
b. Resident alien.
c. Nonresident citizen.
d. Nonresident alien.

52. Richard Evans, a resident and national of the United Kingdom flew into the Philippines
to woo Soledad Mabenta. A Filipina she met via Facebook. During Richard’s visit to
Soledad’s home, her father informed him that he would have to go through the
traditional courting which is strictly followed in their Family. This entails, fetching water
from the deep well to their house, chopping wood and others. To this, Richard agreed.
On his 8th month of courtship, Soledad died on a freak accident while drinking a cup of
coffee. With tears in his eyes, Richard returned home and vowed not to return to the
Philippines. For purpose of income taxation, Richard shall be classified as:
a. Resident alien;
b. Non-resident alien engaged in trade or business;
c. Non-resident alien not engaged in trade or business;
d. Non-resident citizen

53. Which of the following income derived from within the Philippines by a resident
individual is not subject to the rates in Section 24(A) of the NIRC:
a. Salary received by a managing partner of a general professional partnership.
b. Prize won in a singing contest amounting to Php4,000.
c. A gain from the sale of a motor vehicle by a Lawyer.
d. A gain on the sale of real property by a Lawyer, which he inherited from his
grandmother.

54. Tonton deposited P300,000,000 pesos of his lotto winnings with the Bank of the
Philippine islands. Uncertain on which investment should he devote the money, he
decided to temporarily deposit his winnings with the said bank. His interest income
from the said deposit will be subjected to:
a. 10% final tax
b. 20% final tax
c. added to his gross income and subjected to 0%-35% tax
d. Exemption from income tax

55. No law granting tax exemption shall be passed without the concurrence of:
a. Majority of all members of Congress.
b. 2/3 vote of all members of Congress.
c. ¾ vote of all members of Congress.
d. Majority of all members of the Senate.

56. Who among the following individual taxpayers is taxable on income from within and
without the Philippines:
a. Amber, a native of Bacolod, working as overseas contract worker in Dubai;
b. Tracy, a resident of Manila and citizen of Australia; who has been working in the
Philippines for the past 10 years;
c. Manuel Chavez, a resident and citizen of Puerto Rico, sent to the Philippines, as
an employee of a local brewery for 5 months;
d. Juan Cruz, a Filipino, who was sent by his employer to the United States for 5
months.

57. Which of the following is not a taxable corporation:

a. Gina, Naty and Tina agreed to contribute their money into a common fund to
engage in the business of buying and selling dried fish. Their total investment
amounting to Php300,000 and they did not bother to register their business with
the DTI and the SEC.

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
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b. Acel, Myra and Menchie, all certified public accountants, agreed to contribute their
money, property and industry to a common fund with the sole intention of jointly
exercising their common profession. They have registered with the SEC.
c. Batangas Bus Company and Laguna Bus Company owns separate franchises to
operate a public utility covering the area of Southern Luzon. To achieve maximum
efficiency of utilizing their assets and to avoid the negative effects of competition,
the two companies agreed to pool their resources together and operate as a single
company.
d. Nimrod and Daryl, lawyer and certified public accountants respectively, agreed to
contribute their money, property and industry to a common fund to render service
of business process outsourcing.

58. Which of the following is subject to income tax:

a. SSS and GSIS
b. Philippine Health Insurance Corporation
c. Professional Regulation Commission
d. Philippine Amusement and Gaming Corporation

59. The gross income of foreign nationals or non-Filipino citizens employed by POGO
Entities regardless of residency and who are employed and assigned in the Philippines,
regardless of term and class of working or employment permit or visa, shall be subject
to:
a. Graduated tax rate under Section 24(A) of the Tax Code, as amended.
b. Final withholding tax of 20%
c. Final withholding tax of 25%
d. Capital gains tax

60. The gross income of alien individuals employed by POGO entities shall include:
a. Basic salary or wages
b. Annuities
c. Compensation, remuneration and other emoluments, such as honoraria and
allowances, received from OGLs and Service Providers
d. All of the above

61. In every case of doubt, tax statutes are construed:

a. Strictly against the government and the taxpayer.
b. Liberally in favor of the government and the taxpayer.
c. Strictly against the government and liberally in favor of the taxpayer.
d. Liberally in favor of the government and strictly against the taxpayer.

62. In every case of doubt, laws granting tax exemption shall be construed.
a. Strictly against the government and the taxpayer.
b. Liberally in favor of the government and the taxpayer.
c. Strictly against the government and liberally in favor of the taxpayer.
d. Liberally in favor of the government and strictly against the taxpayer.

63. Which of the following, if received by an individual will be added to the gross income
and subjected to the graduated income tax rate of 0% to 35%.
a. Cash dividend from domestic corporation
b. Property dividend from a domestic corporation
c. Share in the distributive net income after tax of taxable partnership in the Philippines.
d. Share in the distributable net income of a general professional partnership.

64. The President of the Philippines and the Prime Minister of Japan entered into an
executive agreement in respect of a loan facility to the Philippines from Japan whereby
it was stipulated that interest on loans granted by private Japanese financial institutions
to private financial institutions in the Philippines shall not be subject to Philippine income
taxes. Is the tax exemption valid?
a. Yes, based on international comity.
b. Yes, based an on executive agreements and treaties.
c. No, it is a violation of essential characteristics of taxation.
d. No, based on the doctrine of territoriality.
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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : www.icarecpareview@gmail.com

65. In a loan agreement between the Bangko Sentral ng Pilipinas (as borrower) and private
international banks (as lenders), it is stipulated that all payments of interest by the
Central Bank to the lenders shall be made free and clear from all Philippine taxes which
may be imposed thereon. Is the stipulation valid?
a. Yes, based on international comity.
b. Yes, based on the doctrine of non-taxability of the government.
c. No, violative of the inherent limitations.
d. No, violative of the constitutional limitations.

66. Receipt of the following by a minimum wage earner does not have an effect on the
latter’s exemption from income tax, except:
a. Holiday pay
b. Hazard pay
c. Nighshift differential pay
d. Commission earned and part of the MWE’s benefits package

67. Ronnie, worked in the United States as a Partner of a Big Four Accounting Firm and has
been residing therein for the past 25 years. He arrived in the Philippines on July 1, 2020
to reside here permanently. Which of the following statements is correct with respect to
Ronnie’s classification for income tax purposes?
a. He will be classified as nonresident citizen from January 1, 2020 until the date of his
arrival in the Philippines.
b. He will be classified as nonresident citizen for the whole year of 2020.
c. He will be classified as resident citizen for the whole year of 2020.
d. He will be classified as neither resident nor nonresident citizen for the year 2020.

68. 1st Statement: Non-resident individual taxpayer are subject to 15% final tax on their
interest income from expanded foreign currency deposit.2nd Statement: There shall be
a 6% capital gains tax on all sale by an individual of shares of stocks of a domestic
corporation.
a. true, true;
b. true, false;
c. false, false;
d. false, true

69.The following are subject to a transfer tax, under the National Internal Revenue Code
(NIRC), except:
a. Condonation of debt caused by the creditor’s mere liberality;
b. Property transferred under a general power of appointment;
c. House and lot, held as capital asset, sold for insufficient consideration.
d. Property transferred under revocable title.

70. Camille is a real estate developer. She sold one of her subdivision lot to Damian,
whom she is exclusively dating, for Php50,000 when the fair market value thereof was
Php5,000,000. The transfer tax under the said transaction amounts to:
a. P0
b. P282,000
c. P1,501,000
d. P1,500,000

10 | P a g AE SCART IN/T LOPEZ / DS ALES

e