Review-Activity

These are income that may be subject to tax or exempt from tax.

• Income

• Gross Income

• Taxable Income

• Net Income

These are income from whatever source, derived within or without the Philippines, whether legal or illegal.

• Income

• Gross Income

• Taxable Income

• Net Income

These are income after deductions which are subject to tax.

• Income

• Gross Income

• Taxable Income

• Net Income

Valuation of Income pertains to monetary value of something.

• True
• False

If the fair market value is absent, historical value shall be used instead, whichever is higher.

• True

• False

What are the three (3) classifications of income?

What are the three (3) requisite for income to be taxable?

Remuneration for services does not constitutes compensation income even if the relationship of employer and employee does not exist any longer at the time when payment is made.

• True

• False

Fringe benefits subject to fringe benefit tax are only applicable to managerial, supervisory and rank and file employees.

• True

• False

Benefits are non-taxable as long as the amount of the benefits won't exceed P90,000.

• True

• False