QUIZ 8 of TAXATION

SUBMITTED BY: DESMUND A. GERARDO

1. Are charitable corps exempt from real property tax?

In the Philippines, charitable institutions, churches, and educational institutions are
generally exempt from income tax, but the exemption from real property tax is not
automatic. To be exempt from real property tax, the property must be used exclusively
for charitable purposes and meet other criteria specified in the law. It's important to
refer to the provisions of the Local Government Code and other relevant laws for the
specific conditions for real property tax exemption.

2. when is income taxable?

In the Philippines, income is generally taxable when it is received or accrued. Different
types of income, such as compensation, business income, and investment income, are
subject to varying tax rates and rules.

3. when is mcit applicable?

The Minimum Corporate Income Tax (MCIT) is applicable in the Philippines when a
corporation's regular income tax is lower than 2% of its gross income.

4. when can an international air carrier without a license be subjected to income tax?
international air carriers without a license to operate in the country are generally
subject to income tax on income derived from Philippine sources. This includes income
from transporting passengers and cargo to and from the Philippines. The tax rates and
rules are stipulated in the National Internal Revenue Code, and international
agreements or treaties may also impact the taxation of such income. It's crucial for
international air carriers to comply with the provisions of the tax laws and any
applicable international agreements.