8. Which of the following received by an individual taxpayer is not subject to final tax but subject to tax under Section 24 A of the Tax Code?

a. Cash dividend from domestic corporation

b. Share in the distributive net income after tax of taxable partnership in the Philippines

c. Property dividend from regional operating headquarters of multinationals

d. Cash dividend from a foreign corporation with Philippine branch

9. Which of the following is an income subject to the basic tax?

a. Share in the net income of ordinary partnership

b. Interest income from BDO

c. Prizes from USA Lotto

d. Dividends received from domestic corporation

10. Individual taxpayers not Subject to tax under Section 24(A)

a. Nonresident aliens engaged in trade or business on their net income within the Philippines.

b. Nonresident aliens not engaged in trade or business on their gross income within the Philippines.

c. Resident citizens on their net income within and without the Philippines

d. Resident citizens and resident aliens on their net income within the Philippines.

11. Statement 1: Passive incomes are subject to separate and final tax rates.

Statement 2: Passive incomes are included in the computation of taxable income from compensation or business/professional income.

a.Statements 1 and 2 are true

b.Statements 1 & 2 are false

c.Statement 1 is true but statement 2 is false

d.Statement 1 is false but statement 2 is true

12. Final tax is generally withheld

On passive incomeFrom Philippine Sources

a.YesNo

b.YesYes

c.NoYes

d.NoNo

13. Binay, a Filipino overseas contract worker and his spouse, a resident of the Philippines, have a joint US dollar account at PS Bank, Makati. Their gross interest earnings in 2020 from the bank deposit amounted to US $4,000. Which of the following statement is correct?

a. The interest income shall be taxable in full because Binay and his spouse are both Filipino citizens.

b. The interest income shall be treated as tax exempt because Binay is non-resident citizen.

c. Fifty percent (50%) of the interest income shall be treated as exempt while the other fifty percent (50%) shall be subject to a final withholding tax of 15%.

d. Fifty percent (50%) of the interest income shall be treated as exempt while the other fifty percent (50%) shall be subject to the graduated rates.