CPA REVIEW SCHOOL OF THE PHILIPINES

Manila

First Preboard Examination February 17, 2024

Taxation Llamado/De Vera
1. Statement 1: A person may refuse to pay a tax on the ground that he receives no personal benefit
from it.
Statement 2 : A taxpayer has a right to question illegal expenditures of public funds.
A. If only the first statement is correct.
B. If only the second statement is correct.
C. If both statements are correct.
D. If both statement are incorrect.
2. Statement 1 : One of the essential characteristics of a tax is it is unlimited in amount.
Statement 2 : A tax is generally unlimited because it is based on the needs of the state.
A. If only the first statement is correct.
B. If only the second statement is correct.
C. If both statements are correct.
D. If both statements are incorrect.
3. Statement 1 : A License Fee is a charge imposed under the police power of the state.
Statement 2: Penalty is imposed by the state only.
A. If only the first statement is correct.
B. If only the second statement is correct.
C. If both statements are correct
D. If both statements are incorrect.
4. Statement 1 : Imposition of taxes is a legislative act.
Statement 2: Collection of taxes is an administrative act.
A. If only the first statement is correct.
B. If only the second statement is correct.
C. If both statements are correct.
D. If both statements are incorrect.
5. Statement 1 : A state has the power to tax even if not granted by the Constitution.
Statement 2: A state cannot exercise police power if not granted by the Constitution.
A. If only the first statement is correct.
B. If only the second statement is correct.
C. If both statements are correct.
D. If both statements are incorrect.
6. Statement 1 : There can only be a tax if there is a law imposing the tax.
Statement 2: The power to tax is inherent.
A. If only the first statement is correct.
B. If only the second statement is correct
C. If both statements are correct.
D. If both statements are incorrect.
7. Statement 1 : A tax is based on law while debt is based on contract.
Statement 2: A tax is also custom’s duty.
A. If only the first statement is correct.
B. If only the second statement is correct.
C. If both statements are correct.
D. If both statements are incorrect.
 Page 2
8. Statement 1 : A person cannot be imprisoned for non-payment of property tax.
Statement 2: A law may be passed violating uniformity of taxation.
A. If only the first statement is correct.
B. If only the second statement is correct.
C. If both statements are correct.
D. If both statements are incorrect.
9. Statement 1 : The RDO is known as the alter ego of the BIR Commissioner.
Statement 2: The BIR Commissioner is directly under the President’s Office.
A. If only the first statement is correct.
B. If only the second statement is correct.
C. If both statements are correct.
D. If both statements are incorrect.
10. Statement 1 : Provisions in the Philippine Constitution on Taxation are grants of power.
Statement 2 : Due process of law in taxation in the Constitution is a grant of power.
A. If only the first statement is correct.
B. If only the second statement is correct
C. If both statements are correct.
D. If both statements are incorrect.
11. One of them is not considered non-resident citizen.
A. A citizen of the Philippines who establishes to the satisfaction of the Commissioner the fact of
this physical presence abroad with a definite intention reside therein.
B. A citizen of the Philippines who leaves the Philippines during the taxable year to reside abroad,
either as an immigrant or for employment on permanent basis.
C. A citizen of the Philippines who works and derives income from abroad and whose employment
thereat requires him to be physically present abroad most of the time during the taxable year.
D. A citizen of the Philippines who went on a business trip abroad and stayed there most of the time
during the year.
12. Ms. A, Filipina, arrived in the Philippines on July 1, 2023 to retire and reside permanently in the
Philippines after working as nurse in the United States of America for 10 years.
Which of the following statements is correct with respect to Ms. A's classification for income tax
purposes?
A. She shall be classified as nonresident citizen for the year 2023 with respect to her income derived
from sources abroad from January 1, 2023 until the date of her arrival in the Philippines.
B. She shall be classified as nonresident citizen for the whole year of 2023.
C. She shall be classified as resident citizen for the whole year of 2023.
D. She shall be classified as neither resident nor nonresident citizen for the year 2023.
13. B, an Expert Physicist was hired by a Philippine corporation to assist in its organization and operation
for which he had to stay in the Philippines for an indefinite period. His coming to the Philippines
was for a definite purpose which in its nature would require an extended stay and to that end makes
his home temporarily in the Philippines. The American management expert intends to leave the
Philippines as soon as his job is finished.
For income tax purposes, the American management expert shall be classified as:
A. Resident alien.
B. Nonresident alien engaged in trade or business.
C. Nonresident alien not engaged in trade or business
D. Resident citizen.
 Page 3
14. Coldplay, an English singer, was engaged to sing for 6 weeks at the Arena, Mall of Asia, Pasay City
after which he shall return to England. For income tax purposes, she shall be classified as:
A. Resident alien.
B. Nonresident alien engaged in trade or business.
C. Nonresident alien not engaged in trade or business.
D. Resident citizen.
15. Situs of taxation is world/global taxation?
A. Non-Profit Hospital
B. Ecozone Enterprises
C. Philippine Overseas Gaming Operators
D. Resident International Carriers
16. It is important to know the source of income for tax purposes (i.e from within and without the
Philippines) because:
A. Some individuals and corporate taxpayers are taxed on their worldwide income while others are
taxable only upon income from sources within the Philippines.
B. The Philippines imposes income tax only on income from sources within.
C. Some individual taxpayers are citizens while others are aliens.
D. Source of sales determined where income to be tax.
17. Individuals shall be tax exempt on:
A. Gross income exceeding 250,000
B. Gross income not exceeding 3,000,000
C. Taxable Income not exceeding 3,000,000
D. Taxable Income not exceeding 250,000
18. Who may avail tax exemption of 250,000?
A. Compensation earners
B. Purely in business or Professionals
C. Mixed earners
D. All of the above
19. An individual shall be subject to maximum income tax rate of?
A. 8%
B. 25%
C. 32%
D. 35%

20. Who can avail the optional 8% Gross Receipts Tax?

A. Self-employed with Gross Receipts or Sales not exceeding 3,000,000.
B. Compensation earners with Gross compensation not exceeding 3,000,000
C. Mixed income earners with Gross Receipts or Sales and other income not exceeding 3,000,000
D. All of the above.
21. Which of the following does not form part of the gross income?
A. Pensions
B. Dividends
C. Annuities
D. Bequest and devises
 Page 4
22. In computing allowable deduction for purposes of income taxation:
1st Statement - Interest expense in connection with the taxpayer’s business shall be reduced by an
amount equal to twenty percent (20%) of interest income subjected to final tax.
2nd Statement - Interest incurred to acquire property used in trade shall only be allowed to be treated
as a capital expenditure.
A. True; False C. False; True
B. True; True D. False; False
23. Patricia was injured in a vehicular accident in 2023. He incurred and paid medical expenses of
P100,000 and legal fees of P50,000 during that year. In 2023, he recovered P350,000 as settlement
from the insurance company which insured the car owned by the other party involved in the
accident. From the above payments and transactions, the amount of income taxable to Patricia in
2023 is:
A. P200,000 C. P350,000
B. P250,000 D. P 0
24. One of the following is not excluded from gross income.
A. Amounts received by insured as return of premium
B. Life insurance proceeds
C. Prizes received by athletes sanctioned by Philippine Government.
D. Share of a partner in the net income of a general professional partnership.
25. To be allowed as a valid deduction, charitable and other contribution must not exceed:
A. 5% of taxable income after charitable contribution, income of corporations.
B. 10% of taxable income after charitable contribution, in case of individuals
C. 5% of taxable income before charitable of contribution, in case of individuals.
D. 10% of taxable income before charitable contribution, in case of individuals.
26. Which of the following penalty tax remained in effect after R.A. 11534 also known as CREATE
law?
A. Improper Accumulated Earnings Tax (IAET) 10%.
B. Gross Income Tax (GRT) 15%.
C. Fringe Benefit Tax (FBT) 33%.
D. Minimum Corporate Income Tax (MCIT) 2%.
27. 1st Statement - The term quasi-banking activities means borrowing funds from twenty or more
persons at any one time through the issuance, endorsement or acceptance of debt instruments of
any kind other than deposits.
2nd Statement - Interest in government debt securities are exempt income.
A. True; False C. False; True
B. True; True D. False; False
28. In case of sale of land under the agrarian reform law:
1st Statement - Interest earned by the owner/seller is exempt income.
2nd Statement - Capital gain in the sale of the land is taxable income, either as capital gains tax or
net income tax at the option of land owner.
A. True; False c. False; True
B. True; True d. False; False
 Page 5
29. In computing net income, no deduction shall in any case be allowed in respect to, except:
A. Personal, living or family expenses.
B. Any amount paid out for new buildings or for permanent improvements, or betterment made to
increase the value of any property or estate.
C. Any amount expended in restoring property or in making good the exhaustion thereof which an
allowance is or has been made.
D. Premiums paid on any life insurance policy covering the life of any officer or employee, when
the immediate family members of such employee are directly the beneficiary.
30. Losses from wash sales of stock or securities shall not be deductible except:
A. The taxpayer is a dealer of securities or stock and made in the course of business of such dealer.
B. The shares of stock sold and then reacquired or repurchased are identical stock or securities.
C. The shares of stock sold and then reacquired within a period beginning thirty (30) days before the
date of such sale or disposition.
D. The shares of stock sold and then reacquired within a period ending thirty (30) days after such
sale or disposition.
31. 1st Statement - The allowable deduction for pension payments to employees will only apply to
those pension plan that is funded.
2nd Statement - The pension trust deduction is composed of the past service cost and the
present service cost.
A. True; False C. False; True
B. True; True D. False; False
32. Dodgers Inc, has been in business for the past 10 years. For the year 2024, it decided to establish a
pension fund for its employees. The pertinent data of the fund are us follow:
Past Service Cost (lump sum payment) P1,000,000
Present Service Cost 100,000
How much allowable deduction for pension cost could be claimed?
A. P1,000,000 C. P200,000
B. P1,100,000 D. P100,000
33. Assuming the same facts in number 12, the allowable deduction for pension after 10 years:
A. P1,000,000 C. P200,000
B. P1,100,000 D. P100,000
34. Mr. R was retired by his employer corporation and paid P1,000,000 as a retirement gratuity
without any deduction for withholding tax. The corporation became bankrupt the following year.
Can the BIR subject the P1,000,000 retirement gratuity to income tax?
1st Answer: Yes, if the retirement gratuity was paid based on a reasonable pension where Mr. R was
50 years old and has served the corporation for more than 10 years.
2nd Answer: No, If Mr. R was forced by the corporation to retire beyond Mr. R’s control.
A. Both answer are wrong
B. Both answer are correct
C. 1st answer is correct, 2nd answer is wrong
D. 1st answer is wrong, 2nd answer is correct
 Page 6
35. The widow of your best friend has just been paid P1,000,000 on account of the life insurance of the
deceased husband. She asks you whether she will declare the amount for income tax purpose or for
estate tax purposes.
1st Advice: The proceeds of life insurance paid to the beneficiary upon the death of the insured are
exempt from income tax and need not be declared for income tax purposes.
2nd Advice: The proceeds of life insurance would have to be declared for estate tax purposes if the
designation of the beneficiary was irrevocable, otherwise it need not be declared.
A. Both advices are correct
B. 1st advice correct; 2nd advice wrong
C. Both advices are wrong
D. 1st advice wrong, 2nd advice correct

36. A tax is classified as ____________________, if it is a fixed amount measured by the head or

number, or by some standard of weight or measurement, and requires no assessment other than a
listing or classification of the subjects to be taxed.
A. ad valorem
B. specific
C. direct
D. indirect
E. None of the above

37. Statement 1: One of the sumptuary/secondary purposes of the power to tax is its use in the
exercise of police power.
Statement 2: The President, thru the DOF, may suggest proposals for tax reforms addressed to
both houses of Congress, but the revenue bill embodying those reforms must
originate from the House of Representatives.
A. Both are true.
B. Both are false.
C. Only Statement 1 is true.
D. Only Statement 2 is true.

38. A non-resident foreign corporation (NRFC) shall generally be subject to a 25% final tax on gross
income received from all sources within the Philippines. However, an NRFC shall be exempt from
tax on:
A. Philippine Charity and Sweepstakes Office (PCSO) winnings less than ₱10,000.
B. De minimis prizes of less than ₱10,000.
C. Interest income paid by a depositary bank under the foreign currency deposit system.
D. Interest income from a long-term deposit or investment certificate issued by a bank in the
Philippines, and held for a period exceeding 5 years.

39. If refunded, the amount of refund does not constitute taxable income:
A. VAT
B. Local taxes
C. OPT
D. Fringe Benefit tax

40. One of the following represents taxable income:

A. Refund of local taxes paid in a prior year.
B. Refund of donors’ tax paid in prior year
C. Refund of income tax in prior year
D. Refund of special assessment paid in prior year
 Page 7
41. Dianna Diablo Nablo, resident citizen, 25 years of age, is an employee of Showtime Inc. from
which she received the following employment income:
Less SSS premiums
Gross pay Less CWT Less Loan Paid Net Pay
and union dues
₱2,450,100 ₱75,000 ₱85,000 ₱12,455 ₱2,277,645

The aforementioned amounts are exclusive of the13th Month Pay and other benefits of ₱165,000,
and de minimis fringe benefits of ₱5,000.
Her taxable compensation income is:
A. ₱2,512,645
B. ₱2,342,645
C. ₱2,517,645
D. None of the above.

42-51)
Edgar Mortiz, single , 49 years old, resident citizen, is employed as a financial analyst in a
management consultancy firm. At the end of taxable year 2023, his employer provided him with a
BIR Form No. 2316 showing the following information for 2023:
Total Gross Compensation Income - 13th month pay and other benefits - ₱24,062
₱487,198
Taxes withheld - ₱42,500 SSS, PHIC, Pag-ibig Contributions and
Union Dues - ₱5,876
De minimis fringe benefits - ₱3,998

Edgar also worked as an independent financial consultant for a couple of select clients receiving
the following in 2023:
Net Monthly Fees
Quarter Consultancy Fees Less 10% CWT
Received
1 ₱737,500 ₱73,750 ₱663,750
2 ₱600,000 ₱60,000 ₱540,000
3 ₱700,000 ₱70,000 ₱630,000
4 ₱912,500 ₱91,250 ₱821,250

The monthly rental expenses related to his consultancy services amounted to ₱30,000, gross of the
5% CWT.
He is not VAT-registered and instead paid the following amounts of OPT:
Quarter OPT Paid
1 ₱7,375
2 ₱6,000
3 ₱21,000
4 ₱27,375

He went to the casino 4 times in 2023 with the following results: March 2, winnings of ₱25,000;
June 4, losses of ₱35,000; September 15, losses of ₱2,000; and December 25, winnings of ₱34,000.
He has excess tax credits from the prior year of ₱17,000.
In his 1st Quarterly ITR for 2023, he chose to be taxed under the graduated rates.

42. Calculate his tax payable/(overpayment) in the 1st Quarterly ITR for 2023.
A. ₱ 1,775
B. (₱20,225)
C. (₱15,225)
D. None of the above.
 Page 8
43. What can Edgar do if indeed there is an overpayment of taxes in his 1st Quarterly ITR for 2023?
A. He can use the amount of overpayment as a tax credit against the tax due in the succeeding taxable
quarters.
B. He can apply for a tax refund and/or tax credit certificate.
C. He shall not pay anything upon filing the 1st Quarterly ITR for 2023.
D. None of the above.

44. Calculate his tax payable/(overpayment) in the 2nd Quarterly ITR for 2023.
A. (₱99,425)
B. ₱37,781
C. ₱22,556
D. None of the above.

45. Calculate his tax payable/(overpayment) in the 3rd Quarterly ITR for 2023.
A. ₱ 92,475
B. ₱ 77,250
C. ₱112,800
D. None of the above.

46. For his annual ITR, he chose to file BIR Form No. 1701 (Annual ITR for Individuals (including
MIXED Income Earners). What is the correct amount to be placed on Part VII, Line 3 in page 4 of
BIR Form No. 1701?
A. ₱115,031
B. ₱91,250
C. ₱203,750
D. None of the above.

47. What is the correct amount to be placed on Part VII, Line 4 in page 4 of BIR Form No. 1701?
A. ₱115,031
B. ₱203,750
C. ₱91,250
D. None of the above.

48. What is the correct amount to be placed on Part VII, Line 5 in page 4 of BIR Form No. 1701?
A. ₱115,031
B. ₱91,250
C. ₱42,500
D. None of the above.

49. What is the correct amount to be placed on Part V, Schedule 3A, Line 24 in page 2 of BIR Form No.
1701?
A. ₱2,912,638
B. ₱2,550,250
C. ₱3,003,512
D. None of the above.

50. What is the correct amount to be placed on Part V, Schedule 4, Line 15 in page 3 of BIR Form No.
1701?
A. ₱ 61,750
B. ₱421,750
C. ₱360,000
D. None of the above.
 Page 9
51. Calculate his tax payable/(refundable) in the Annual ITR for taxable year 2023.
A. ₱234,023
B. ₱251,023
C. ₱223,760
D. None of the above.

52. AJ and Ryza, both resident citizens, are employed as MWEs with the Commission on Audit in the
Region 6, each earning the minimum wage of ₱450 per day. In the middle of the year, AJ was
transferred to the National Capital Region (NCR), and his daily wage was increased to ₱610 per day
which is the Minimum Wage in the NCR.
On the other hand, Ryza was transferred to Region 12, and received the same rate of ₱450 per day.
The statutory minimum wage in Region 12 is ₱385 per day.
Which of the following should be withholding the CWT on employment income?
A. COA-Region 6
B. COA-NCR
C. COA-Region 12
D. None of the above.

53. Mario is a minimum wage earner (“MWE”) employed in a fast food restaurant in Metro Manila.
Aside from this, he also earns income from the operation of a small “barbeque stand” in front of his
house. Which statement is correct?
A. Both his minimum wage and his income from the barbeque stand are exempt from tax.
B. Both his minimum wage and his income from the barbeque stand are subject to income tax.
C. Only the income from the barbeque stand is taxable in the ITR. If he qualifies and chooses the
8% tax, he can also avail of the ₱250,000 deduction.
D. None of the above.

54-62) Jashmine Jeje Alerto, resident citizen, girlfriend of Coco Martin, is a real estate lessor in the
Philippines.
She has the following financial information in the current taxable year 2023:
(a) Interest income on receivable from her sister ₱ 25,000
(b) Interest expense on loan owed to mother 15,000
(c) Royalty income from book, net of FT 85,000
(d) Loss on sale of rental property to brother 350,000
(e) Gain on sale of personal car bought in 2018 90,000
(f) Rental receipts from real property, gross of 5% CWT 600,000
(g) Cost of revenues related real property leasing 100,000
(h) Liquidating dividend paid by X Corporation 187,000
Cost of investment made in January 2021 in X Corporation 200,000
(i) Dividend received from Microsoft Corporation with
headquarters in Seattle, Washington, USA 75,000
(j) Dividend from Jollibee Corporation, net of FT 10,000
(k) Expenses for singing lessons taught by Anne Curtis 50,000
(l) OPT paid 18,000
(m) Taxes paid in her first 3 quarterly ITRs for 2023 9,900
54. Compute the final taxes withheld from her incomes.
A. ₱10,556
B. ₱ 9,444
C. ₱ 1,111
D. ₱ 5,000
 Page 10
55. Which of the following expenses may she deduct in her ITR?
A. Interest expense on loan owed to mother in the amount of ₱15,000
B. Loss on sale of rental property to brother in the amount of ₱350,000
C. Expenses for singing lessons taught by Anne Curtis in the amount of ₱50,000
D. None of the above.

56. If she chose to be taxed under the graduated rates with OSD in her 1st Quarterly ITR, what BIR form
shall she file for her annual return?
A. BIR Form No. 1700 – Individuals Earning Purely Compensation Income (including Non-
Business/Non-Profession Related Income)
B. BIR Form No. 1701 – Individuals (including Mixed Income Earners), Estates, and Trusts
C. BIR Form No. 1701A – Individuals Earning Purely From Business/Profession [Those under the
graduated income tax rates with OSD as mode of deduction OR those who opted to avail of
the 8% flat income tax rate].
D. None of the above.

57. If she chose to be taxed under the graduated rates with OSD, what is the total amount of non-operating
income that shall be reflected in her annual ITR?
A. ₱100,000
B. ₱145,000
C. ₱138,500
D. None of the above.

58. If she chose to be taxed under the graduated rates with OSD, what is her taxable net income which
shall be shown in her annual ITR?
A. ₱398,500
B. ₱498,500
C. ₱492,000
D. None of the above.

59. If she chose to be taxed under the graduated rates with OSD, what would be her tax due in her annual
ITR?
A. ₱42,200
B. ₱40,900
C. ₱34,768
D. None of the above

60. If she chose to be taxed under the graduated rates with OSD, what would be the total credits available
to her to decrease the income tax payable in her annual ITR?
A. ₱30,000
B. ₱57,900
C. ₱39,900
D. None of the above.

61. If she chose to be taxed under the graduated rates with OSD, what would be her income tax
payable/(refundable) in her annual ITR?
A. ₱ 2,300
B. (₱ 9,700)
C. ₱ 6,300
D. None of the above.
 Page 11
62. If she chose to be taxed under the graduated rates with Itemized Deductions, what would be her
income tax payable/(refundable) in her annual ITR?
A. ₱22,300
B. ₱ 9,700
C. ₱26,700
D. None of the above.

63. The following are the features of the 8% optional income tax in the ITR, except:
A. A VAT-registered taxpayer is not qualified to avail of the 8% tax.
B. The qualified taxpayer must signify his choice of the 8% tax rate in the first quarterly ITR before
he can avail of the same.
C. The qualified taxpayer who avails of the 8% tax option is exempt from paying the 3% OPT
under Section 116 of the Tax Code.
D. A qualified individual taxpayer who avails of the 8% tax option is still required to file his
financial statements with his Annual ITR.

64. Marinra International Education Corporation, a proprietary educational institution under Section
27(B) of the Tax Code, recently appointed Dr. Armando Reyes as the new Dean of its Valix School
of Accountancy. The corporation offered Dr. Reyes the use of the top floor of its building which
houses the school of accountancy for his residence. The offer was made in order that Dr. Reyes can
avoid traffic and can immediately begin managing the school when it opens at 7:00 in the morning.
For purposes of computing the FBT, if any,
A. The value of the fringe benefit shall be computed by estimating rentals which the educational
institution can charge third parties for the use of the top floor of its building.
B. The value of the fringe benefit shall be computed by estimating the depreciation arising from
the use of the top floor by Dr. Reyes.
C. The value of the fringe benefit shall be the average of (A) and (B).
D. None of the above

65. Duk Ko Kim, a non-resident alien manager of Green View Corporation, a domestic corporation
engaged in management consulting services, came to the Philippines to perform project management
services for Green View Corporation. The amount paid for Lee’s services was ₱500,000. He stayed
in his favorite hotel, the Manila Mandarin Hotel, for 10 days, and upon completion of the service,
left for Korea. Green View paid for Lee’s hotel bills in the amount of ₱80,000.
Compute the final taxes to be remitted by Green View to the BIR.
A. ₱151,667
B. ₱168,007
C. ₱175,000
D. None of the above

66. Which of the following benefits received by an employee may be subject to the regular income tax
rates in the ITR?
(1) Use of employer’s bus for its drivers’ summer outing
(2) Payment of tuition fee of eldest child of a rank-and-file employee
(3) Housing provided to a rank-and-file employee
(4) Uniform and clothing allowance of ₱6,000 per year
A. All except (1)
B. All except (3)
C. All except (4)
D. All except (2)
 Page 12
67-70) The records of JANELLA Corporation, domestic, organized in 2010, engaged in retail, show the
following in calendar years 2020, 2021, 2022, 2023, and 2024:

2020 2021 2022 2023 2024

Sales, gross of CWT 1,700,000 1,800,000 1,740,000 2,100,200 2,500,000
Cost of Sales 530,000 430,000 110,000 510,100 450,000
Operating Expenses 1,820,000 1,740,200 1,600,000 1,300,400 1,100,000
Non-operating income 700,000 400,000 70,000 230,000 85,000
CWT on sales per BIR
Form 2307 17,000 18,000 7,400 21,002 25,000
Taxes paid in previous
3 quarters 2,000 5,500 1,250 106,923 98,500

The corporation chooses to credit in future years any excess tax credits it may have in a taxable
year.

67. Compute the tax payable/(refundable) in its 2020 AITR.

A. ₱9,050
B. (₱ 300)
C. ₱0
D. None of the above

68. What would be the tax payable/(refundable) of JANELLA Corporation for taxable year 2021?
A. (₱5,800)
B. ₱5,050
C. ₱6,500
D. None of the above.
69. What would be the tax payable/(refundable) of JANELLA Corporation for taxable years 2022 and
2023?
A. ₱0; ₱0
B. (₱3,750);(₱1,750)
C. ₱0; ₱2,000
D. None of the above.
70. What would be the tax payable/(refundable) of JANELLA Corporation for taxable year 2024?
A. ₱135,250
B. ₱125,000
C. ₱ 42,700
D. None of the above.

END
 Page 13

Graduated Tax Rates: Effective January 1, 2018 to December 31, 2022:

Range of Taxable Income (TI) Tax Due = a + [b x (TI - c)]

Over Not Over Basic Amount Additional Rate Of Excess Over

(a) (b) (c)

- 250,000 - -

250,000 400,000 - 20% 250,000

400,000 800,000 30,000 25% 400,000

800,000 2,000,000 130,000 30% 800,000

2,000,000 8,000,000 490,000 32% 2,000,000

8,000,000 - 2,410,000 35% 8,000,000

Graduated Tax Rates: Effective January 1, 2023 onwards:

Range of Taxable Income (TI) Tax Due = a + [b x (TI - c)]

Over Not Over Basic Amount Additional Rate Of Excess Over

(a) (b) (c)

- 250,000 - -

250,000 400,000 - 15% 250,000

400,000 800,000 22,500 20% 400,000

800,000 2,000,000 102,500 25% 800,000

2,000,000 8,000,000 402,500 30% 2,000,000

8,000,000 - 2,202,500 35% 8,000,000