1. A private employee had the following remuneration in 2019. Total exempt benefit is 41000.

2. Which statement is incorrect? A VAT-registered tax payer whose gross sales or gross receipts do not exceed the
VAT threshold of P3,000,000 shall have the option to use the graduated tax table or the 8% fixed rate
3. A taxpayer, married without qualified dependent child, had the following data for taxable year 2018: If the taxpayer
is a resident alien, married, his taxable income is 400000
4. A managerial employee received the following benefits during the year. Taxable compensation income is 1445000
5. Cameron, a sole proprietor has the following data in 2018, its first year of merchandising: Cameron’s taxable income
is 176000
6. Mr. Banal had the following data for 2019: The taxable income of Mr. Banal is he a non-resident citizen is 2040000
7. The following relate to the compensation income of a private rank and file employee during the year. Total
non-taxable compensation income is 140000
8. A managerial employee received the following remunerations: Taxable compensation income is 1335000
9. The following income earned by a minimum wage earners are exempted from income tax except: business and/or
professional income
10. Mr. Rodney presented the following schedule of income in 2019: Compute the income tax still due: 2,500 payable
11. An employee received the following remunerations aside from the basic pay: If the employee is a minimum wage
earner, the total supplemental compensation is 32000
12. Mr. Banal had the following data for 2019: The taxable income of Mr. Banal is he a resident citizen is 4520000
13. Mr. Rodney presented the following schedule of income in 2019: The taxable net income of Mr. Rodney is:
P420,000
14. A taxpayer, married without qualified dependent child, had the following data for taxable year 2018: If the taxpayer
is a non-resident citizen, married, his taxable income is: 400000
15. A husband earned P450,000 taxable income. His wife also earned P100,000 taxable income. Which is true? The
husband pays tax while the wife is exempt
16. The following relate to the compensation income of a private rank and file employee during the year. Total
supplemental compensation is 17000
17. Which is not allowed the option to be taxed at 8%? Compensation Income Earner
18. A private employee had the following remuneration in 2019: Total de Minimis benefits is: Wrong:21200 & 65k &
8600 & 8000
19. A private employee had the following remuneration in 2019. Total taxable compensation income is 350000.
20. An employee received the following remunerations aside from the basic pay: If the employee is a regular employee,
the total supplemental compensation is 56000
21. The following relate to the compensation income of a private rank and file employee during the year. Total taxable
compensation income is: 536000
22. Which is incorrect regarding the 8% optional income tax? may be opted to if the taxpayer claimed optional
standard deductions
23. A minimum wage earner who is subjected to withholding tax shall file an adjustment return and claim tax refund
24. The following relates to an annual payroll of the employee: Taxable compensation income is 1069000
25. A married taxpayer had the following income within and outside the Philippines. What is the taxable income
assuming the taxpayer is a resident citizen? P495,000
26. Who is not subject to withholding tax on compensation? Minimum wage earner
27. Ms. Aya is the owner of Pabebe Party Favors Store. She also works as a party host. In 2019 her store’s gross sales
amounted to P1,200,000 while her gross receipts as party host amounted to P450,000. Cost of sales incurred in 2019
amounted to P850,000 while operating expenses was P380,000. Aya failed to signify her intention to be taxed at 8%
income rate in her first quarter income tax return. How much is Aya’s taxable income? P420,000
28. Mr. Julian had the following income in 2019: Taxable compensation income is 330000
29. A taxpayer, married without qualified dependent child, had the following data for taxable year 2018: If the taxpayer
is a non-resident alien, not engage in business in the Philippines his taxable income is 800 000
30. A taxpayer, married without qualified dependent child, had the following data for taxable year 2018: If the taxpayer
is a non-resident alien, engage in business in the Philippines his taxable income is 400000
31. Ms. Aya is the owner of Pabebe Party Favors Store. She also works as a party host. In 2019 her store’s gross sales
amounted to P1,200,000 while her gross receipts as party host amounted to P450,000. Cost of sales incurred in 2019
amounted to P850,000 while operating expenses was P380,000. She has signified her intention to be taxed at 8%
income tax rate in her first quarter income tax return. How much is Aya’s taxable income? P1,400,000
32. Mr. Rodney presented the following schedule of income in 2019: Compute the tax still due and payable if Mr.
Rodney opted to the 8% optional tax P19,500
33. A married taxpayer had the following income within and outside the Philippines. What is the taxable income
assuming the taxpayer is a resident alien? P330,000
34. Cameron, a sole proprietor has the following data in 2018, its first year of merchandising: Cameron’s gross income
is 200000
35. Mr. Ricky, owner of Ricke’s Sports Shop has opted to be taxed at 8% income tax rate. He has no other source of
income aside from his shop. For the first three (3) quarters of 2019, shop’s total sales amount to P3,000,000 while
for the 4th quarter, it is P2,300,000. Below are the cost of sales and operating expenses for the four quarters of 2019.
Compute the total tax already paid by Mr. Ricky for the first three quarters of 2019. P220,000
36. Which of the following scenario will still require an adjustment return from the employee even if the employers
correctly withheld the tax on their compensation payments? All scenarios are correct
37. A government employee received the following benefits in 2019: Taxable compensation income is 1009200
38. Statement 1: there is no need to file a consolidated return if the withholding tax on compensation and the expanded
withholding tax is correctly withheld. Statement 2: A businessman who is deriving income from a sole customer
need not file a consolidated return if the customer correctly withheld any expanded withholding tax. Both
statements are false
39. A taxpayer, married without qualified dependent child, had the following data for taxable year 2018: If the taxpayer
is a resident citizen, married, his taxable income is 700000
40. Kaytee received the following income from her employment in 2019: How much is Kaytee’s taxable compensation
income? P358,000
41. Which is not required to file quarterly income tax return? Pure compensation income earner
42. John received a salary of P73,000 during the year consisting of: P60,000 basic salary, P8,000 overtime pay and
P5,000 13th month pay. John’s taxable income using contemporary regulations is 0
43. Mr. Ricky, owner of Ricke’s Sports Shop has opted to be taxed at 8% income tax rate. He has no other source of
income aside from his shop. For the first three (3) quarters of 2019, shop’s total sales amount to P3,000,000 while
for the 4th quarter, it is P2,300,000. Below are the cost of sales and operating expenses for the four quarters of 2019.
Compute the income tax still due at the end of 2019. P286,000
44. Mr. Rodney presented the following schedule of income in 2019: The total deductible expenses against gross income
is: P230,000
45. Colleen, a government employee received a full 13th month pay of P20,000, exclusive of P14,000 and other
benefits. He was deducted P18,000 during the year for premium for his SSS, PHIC, and HDMF contributions.
Taxable compensation income is 222000
46. Ms. Aya is the owner of Pabebe Party Favors Store. She also works as a party host. In 2019 her store’s gross sales
amounted to P1,200,000 while her gross receipts as party host amounted to P450,000. Cost of sales incurred in 2019
amounted to P850,000 while operating expenses was P380,000. She has signified her intention to be taxed at 8%
income tax rate in her first quarter income tax return. How much is Aya’s income tax liability? P112,000
47. Ms. Aya is the owner of Pabebe Party Favors Store. She also works as a party host. In 2019 her store’s gross sales
amounted to P1,200,000 while her gross receipts as party host amounted to P450,000. Cost of sales incurred in 2019
amounted to P850,000 while operating expenses was P380,000. Aya failed to signify her intention to be taxed at 8%
income rate in her first quarter income tax return. How much is Aya’s income tax liability? P35,000
48. An employee received the following compensation during the year: Taxable compensation income is: 138800
49. If husband and wife are both employed, which is correct regarding their income tax exemption in the tax table? Each
spouse shall be entitled to a P250,000 income tax exemption in the tax table.
50. Which is an item of income subject to regular tax? gain on sale of equipment

51. If the taxpayer is resident alien, married, his taxable income is 300,000
52. Compute Kaytee’s income tax due using graduated tax table P21,600
53. Revenue regulations 10-2008 considers the following workers in hazardous workplace except: Workers that
exposes guest entertainers, bar attendants, etc. to unruly and nasty behaviour which can trigger rumble or
fights among customers and staff as well as possible inquiry and searches of health inspection authority
54. If the husband is employed with P700,000 taxable income while his wife… he shall will be actually subject to tax on
450000 of income
55. Which is not included in the tax basis of the 8% income tax? Net income from operation
56. Mr. Ricky, owner of Ricke’s Sports Shop has opted to be taxed at 8% income tax rate. He has no other source of
income aside from his shop. For the first three (3) quarters of 2019, shop’s total sales amount to P3,000,000 while
 for the 4th quarter, it is P2,300,000. Below are the cost of sales and operating expenses for the four quarters of 2019.
Compute the total taxable income at the end of 2019. 2,050,000
57. The following relate to the compensation income… Total exempt De Minimis benefits is 29000

1. Colleen a government employee received a full 13th month pay of P20,000, exclusive of P14,000 and other benefits.
He was deducted 18,000 during the year for premium for his SSS,, PHIC AND HDMF Contributions. Taxable
compensation income is: 222000
2. Cameron a sole proprietor has the following data in 2018, its first year of merchandising: 1. Cameron’s taxable
income is 176000
3. What is taxable income assuming the tax payer is a resident alien. 330,000

4. Compute the total tax already paid by Mr. Ricky for the first three quarters of 2019. 220,000

5. A minimum wage earner who is subjected to withdrawing tax shall. File an adjustment return and claim tax
refund

6. Which is not included in the tax basis of the 8% income tax.

Net income from operation

7. Compute the tax still due and payable if Mr. Rodney opted to the 8% optional tax.

19,500

8. Compute the Total Taxable income at the end of 2019.

2,050,000

9. If the husband is employed with 700,000 taxable income while his wife is unemployed

450,000 of income

10. Colleen a government employee received a full 13th month pay of P20,000

222000

11. Who is not required to file quarterly income tax return

Pure compensation income earner

12. Total De Minimis benefits is

41000
13. If the employee is a regular employee, the total supplemental compensation is
56000

14. If the taxpayer is a non-resident alien, not engage in business in the Philippines his taxable income is
800000

15. Revenue regulations 10-2008 considers the following workers in hazardous workplace
Workers that exposes guest entertainers, bar attendants
16. If husband and wife are both employed, which is correct regarding their income tax exemption in tax table.
Each spouse shall be entitled to a P250,000 income tax exemption

17. Statement 1: There is no need to file a consolidated return if

Both statement are false

18. Which of the following scenario will still require an adjustment return from
All scenarios are correct

19. Compute the income tax still due

P2,500 payable

20. Cameron’s gross income is

200000

21. The taxable income of Mr. Banal is he a resident citizen is

4520000

22. The total deductible against expenses against gross income is

P230,00

23. Compute the income tax still due at the end of 2019
P286,000

24. A husband earned P450,000 taxable income, His wife also earned P100,000 taxable income. Which is true
The husband pays tax while the wife is exempt

25. Which is incorrect regarding the 8% optional income tax

May be opted to if the tax payer claimed optional standard deductions.

26. Total exempt De Minimis benefits is

29000

27. Who is not subject to withholding tax on compensation?

Minimum wage earner

28. John’s taxable income using contemporary regulations is

0

29. If the tax payer is a non-resident alien, engage in trade or business in the Philippines his taxable income is
400000

30. Total Supplemental compensation is

17000

31. The taxable net income of Mr. Rodney is

P420,000

32. If the tax payer is a resident alien, married, his taxable income is
700000

33. Total exempt benefit is

41000

34. The taxable income of Mr. Banal is he a non-resident citizen is

 2040000

35. How much is Kaydee’s taxable compensation income?

P358,000

36. Which is an item of income subject to regular tax

Gain on sale of equipment

37. The following income earned by a minimum wage earners are exempted from income tax except
Business and/or professional income

38. Which statements is incorrect?

A VAT registered tax payer whose gross sales or gross receipts do not exceed

ADDITIONAL EA#5:

1. The P250,000 income tax exemption for individuals is designed to be in lieu of their personal and business
expenses. FALSE
2. A dividend declaration in 2019 is subject to a final tax of 10%. TRUE
3. The employer’s share to SSS, Philhealth and Pag-Ibig contributions are an exclusion in gross income. TRUE
4.The employer’s share to SSS, PhilHealth and Pag-ibig contributions are an exclusion in gross income. FALSE
5. Statement 1: Items of passive from abroad are subject to regular income tax. Statement 2: Items of passive
income from Philippines are generally subject to final income tax. Which statement is generally correct?
wrong: Statement 2
Neither?
6. Items of passive income from abroad are subject to final tax. FALSE
7. Business expenses can be deducted against all types of gross income subject to regular tax. FALSE
8. Compared to exclusion, deduction is included in the amount of gross income but both exclusion and
deductions are not reflected in the amount of taxable income. TRUE
9. Incomes earned outside the Philippines by OFWs are tax exempt because they are considered nonresident
citizen. TRUE
10. Individuals are subject to final tax on winnings abroad. FALSE
11. Winnings which are not more than P10,000 in amount are subject to the regular income tax. FALSE
12. Compared to exclusions, deduction is included in the amount of gross income but both exclusions and
deductions are not reflected in the amount of taxable income. TRUE
13. Both active income and passive income do not require direct participation of the taxpayer in earning the
income. FALSE
14. NRA-NETBs are not required to file the regular income tax return. TRUE
15. Royalties, active or passive are subject to regular income tax. FALSE
16. An employee can secure retirement benefit exemption only once in a lifetime. TRUE
17. Final tax applies only on certain passive income earned within the Philippines. TRUE
18. Resident alien is subject to 15% final tax on interest from foreign currency deposits made within the
Philippine banks. FALSE
19. Final tax generally covers passive income. TRUE
20. A regular employee is subject to the regular income tax. TRUE