Question 1

A domestic corporation organized and operated as a nonstock, nonprofit educational institution received 200k
for tuition fees and 300k from rentals to private concessionaires. The educational institution used 500k in order
to buy books as part of its program. The entire amount is: Exempt from income tax

Question 2
Samahan ng Nagkakaisang Manggagawa is a labor organization registered with DOLE. It collected union dues
from members of 400k, likewise operated a memorabilia shop that earned income of 350k. It used 600k of
proceeds for the professional development of its union members. Subject to MCIT: 350,000

Question 3
Gross income includes which of the following:
I. Sale of unicorn figures
II. Interest income from its deposit in bank account at the Seoul branch of Bank of Korea
III. Sale of factory building at a gain
IV. Sale of real property held as a capital asset at gain
Answer: I, II, and III

Question 4
Which of the following is subject to final income tax:
I. Dividend received by RC from DC;
II. Dividend received by RC from RFC;
III. Dividend received by RFC from RFC. I only

Question 5
Angkas Corporation is a resident foreign corporation with branches nationwide, including the Philippines. Its
Philippine branch had income of 10M in 2024 and earmarked 8M from remittances. They actually remitted 7M.
What is the branch profit remittance tax due from the Philippine branch? 1,200,000
Solution: 2M * 0.6 = 1,200,000

Question 6
Which of the following joint ventures is considered a taxable corporation for income purposes?
Joint venture for purpose of undertaking construction projects under service contract with gov’t
Joint venture for purpose of engaging in business operations pursuant to an operating/consortium
agreement under service contract with the gov’t

Question 7
Corporate income tax rate as of 2020: 27.5%
(Jan 1 – Jun 30 = 30%; July 1 – Dec 31 = 25%)

Question 8
Which of the following statements is true:
NRANETB, commercial activities subject to final tax on dividends at 20%

Question 9
Which of the following distributable income to its partners is subject to final tax?
I. The share of net income creditable to capital accounts of partners
II. The share of net income actually distributed to the partners
Both I and II
Question 10
Covered by preferential 1% tax rate beginning July 1, 2020:
I. Proprietary educational institutions
II. Nonstock, nonprofit hospitals
III. Nonstock, nonprofit educational institutions whose net income/assets inure to any member
Answer: I, II, and III

Question 11
Which of the following is not a ground for suspension of imposition of MCIT?
Non-operation of the business

Question 12
Who is given the authority to suspend imposition of MCIT? Secretary of Finance, under the
recommendation of the CIR

Question 13
A lawyer, civil engineer, and a CPA establish a partnership for rendition of consultancy services. Is the income
of partnership be taxed?
Taxed like a taxable corporation

Question 14
Which of the following statements is TRUE?
In the case of NRAETB, commercial activities are subject to final tax on dividends at 20%.