Minimum Wage and Taxation Quiz

What is the purpose of a minimum wage?

• To ensure employees receive fair compensation

• To increase employer profits

• To lower tax revenues

• To promote labor migration

Which law established the minimum wage system in the Philippines?

• Republic Act No. 10963

• Republic Act No. 6727

• Presidential Decree No. 174

• Labor Code of the Philippines

What is the government agency responsible for tax collection in the Philippines?

• Department of Trade and Industry (DTI)

• Bureau of Internal Revenue (BIR)

• National Wages and Productivity Commission (NWPC)

• Securities and Exchange Commission (SEC)

What does the TRAIN Law stand for?

• Tax Reform for Accelerated National Income

• Tax Reform for Acceleration and Inclusion

• Taxation and Revenue for Income and Needs

• Tax Revision for Additional Investments

What type of tax is applied to income earned by individuals?

• Value-Added Tax

• Capital Gains Tax

• Income Tax

• Excise Tax

Why do different regions have different minimum wage rates?

• Because of varying costs of living

• To promote migration to urban areas

• To encourage competition between provinces

• To increase tax collection

What is one major impact of higher minimum wages?

• Increase in unemployment

• Decrease in business costs

• Increase in labor exploitation

• Reduction of government revenues

How does the TRAIN Law benefit low-income earners?

• Increases their wages directly

• Exempts them from income tax if earning below ₱250,000 annually

• Eliminates mandatory deductions

• Reduces prices of all goods

What is the main purpose of excise tax?

• To regulate consumption of certain goods

• To lower product demand

• To increase labor supply

• To reduce government expenses

What happens when a worker's annual taxable income is below ₱250,000?

• They pay 5% income tax

• They pay 10% income tax

• They are exempt from income tax

• They pay excise tax