TAX QUIZ on

CREATE LAW
SEPTEMBER 29, 2021
TAKE NOTE:
* You will answer the tax quiz in the chat box.
* The first one to get the correct answer will be the
winner for each number.
* To Answer, please write the question no. then the
letter of your answer. Ex. 1. A
 How much the value of the land will be

1 deducted in computing for the total assets

if only a portion of the floor area 1000
SQM of the building is devoted to the
entity's office and the rest of the usable
floor area are on lease. The total floor
area of the building is 5000 sqm and the
total value od the building is P10M?

A. 10 M
B. 5M
C. 2.5M
D. 2M
ANSWER: D
To illustrate:
1,000/5,000sqm x Php 10,000,000.00
=Php 2,000,000.00.
 What is the rate for Proprietary and

2 Educational Institutions and Hospitals for

Taxable Year ended December 31, 2020?

A. 5.5%
B. 10%
C. 1%
D. 30%
ANSWER: A

Transitory Rate of 5.5%

Jan-June 2020-10%
July-Dec-1%
 GTZ Corporation, a domestic corporation, owns

3 twenty percent (20%) of the outstanding shares

of UK Corporation, a non-resident foreign
corporation (NRFC), since 2015. On May 1, 2021,
it received dividends amounting to P 1M from
the said NRFC. On March 1, 2022, GTZ Corp
utilized P800,000.00 for its dividend payments.
On January 1, 2023, it utilized the remaining
P200,000.00 for its working capital requirements.

How much will be the included in the taxable

income 2021?
A. 1,000,000
B. 200,000
C. 800,000
D. 0, not taxable
ANSWER: B
P800,000.00 shall be treated as tax-exempt since this was
properly utilized within 1 year (May 1, 2022). On the other
hand, P200,000.00 shall be declared as taxable income for
the taxable year 2021, subject to surcharge, interest, and
penalty, since the utilization is not within the following
taxable year.
 The decrease of Percentage Tax rate from three

4 percent (3%) to one percent (1%) effective July 1,

2020 until June 30, 2023 pursuant to Section 13
of R.A. No. 11534 intended for corporate
taxpayers only.

A. The statement is TRUE

B. The statement is FALSE
C. 50% True and 50% False
D. I really don’t know.
ANSWER: B. FALSE
Sec. 116 of the Tax Code, applies to BOTH corporate
taxpayers and self-employed individuals and professionals
whose gross sales or gross receipts are not exceeding the
three million pesos (P3,000,000.00) threshold, except for
cooperatives and self-employed individuals and
professionals availing the 8% income tax rate.
 Non-VAT-Registered taxpayers required to amend

5 their Percentage Tax returns (BIR Form (2551Q)

for the third (3rd) and fourth (4th) quarters of
2020 up to the effectivity of RR 4-2021 by using
the 1% rate.

A. The statement is TRUE

B. The statement is FALSE
C. 50% True and 50% False
D. I really don’t know.
ANSWER: A. TRUE
Taxpayers who filed their 3rd and 4th quarter Percentage
Tax returns for 2020 and those who may have filed their 1st
quarter percentage tax returns for 2021 using the 3% rate
are required to amend their duly filed Percentage Tax
returns using the 1% rate to reflect the overpaid taxes.
CONGRATULATIONS
TO ALL THE
WINNERS!!!
Kindly message your full
NAME, CONTACT
NUMBER and EMAIL for
your prize.