Chapter 4: Tax Planning

1. The individual taxpayers are also called__.

• Jurisdictional Person

•  Artificial Person

• Natural Person

• Super Natural Person

1. According to the Philippine Tax Code Sec.22 E, immigrants are defined as___ .

• A citizen of the Philippines who leaves the Philippines during the taxable year to reside abroad, either as an immigrant or for employment on a permanent basis.

•  A citizen of the Philippines who establishes to the satisfaction of the Commissioner the fact of his physical presence abroad with a definite intention to reside therein.

• 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.

• Individuals whose residence is within the Philippines and who is not a citizen thereof.

1. Under the Create Act, these are the corporations who has a flat tax rate of 20%

• Domestic Corporations

• Domestic Corporations (MSMEs)

•  Foreign Corporations

• Foreign Corporations (MSMEs)

Who are taxed only on their income derived from the Philippines?

• Resident Alien

• Non Resident Alien

• Resident Foreign Corporations

• All of the above

1. Jollibee is a famous fast food chain in the Philippines. It also now globally operates in 33 countries  including Singapore, Taiwan and the United States. What is the situs of taxation of the said branches?

• Within the Philippines

• Without the Philippines

•  Both  a and b

• No correct answer

1. This is where the Place of Sale is considered.

• Rentals

• Gain on sale of personal property

• Dividends

• Income from services

Statement: A gain from sale of shares of a domestic corporation shall be considered derived from the Philippines regardless of where the shares were sold.

• The Statement is false

• The Statement is true

• The Statement is either false or true

• No answer

1. Statement 1: Rentals Involves physical assets like real estate, vehicles, or equipment.

Statement 2: Royalties are the intangible assets like intellectual property.

• Statement 1 and 2 are false.

• Statement 1 and 2 are true.

• Statement 1 is false and statement 2 is true.

• Statement 1 is true and Statement 2 is false.

Which of the following test of source of income is incorrect?

• Interest income residence of the debtor

• Income from services - place of performance

• Royalties place of use of intangible

• Gain on sale of real property - place of sale (should be the location of real property)

The following are considered the source of income under rentals and royalties except one?

• Copyright

• Design

• Shares

• Trade brand