8. Enumerate and explain the classifications of individual taxpayers.

1. Citizen
a. Resident citizen - a Filipino citizen residing in the Philippines.
b. Non-resident citizen - a Filipino citizen who lives and works abroad, and used to
be a non-resident but returns to live permanently in the Philippines.

2. Alien
a. Resident alien - an individual who is residing in the Philippines but is not a citizen
thereof
b. Non-resident alien - an individual who is not residing in the Philippines and who
is not a citizen thereof

3. Taxable estates and trusts

Estate refers to the properties, rights, and obligations of a deceased person not
extinguished by his death.
Trust is an arrangement whereby one person (grantor or trustor) transfers (i.e.
donates) property to another person (beneficiary), which will be held under the
management of a third party (trustee or fiduciary).
 13. What is the situs of the following income?

a. Interest income
b. Service income
c. Royalty income
d. Rental income
e. Gain on sale of movable property
f. Gain on sale of immovable property
g. Dividend income from domestic corporation
h. Dividend income from resident foreign corporation
i. Merchandising income
a. Interest income - Debtor's residence
b. Service income - Place where the service is rendered
c. Royalty income - Where the intangible is employed
d. Rental income - Location of the property
e. Gain on sale of movable property (personal property):
A. Domestic securities - presumed earned within the
Philippines
B. Other personal properties - earned in the place where the
property is sold
f. Gain on sale of immovable property (Real property) - earned where
the property is located
g. Dividend income from domestic corporation - presumed earned
within
h. Dividend income from resident foreign corporation - situs
depends on pre-dominance test
i. Merchandising income - earned where the property is sold