Question
A taxpayer earned the following incomes (gross amounts) in 2020: (Assume source is Phils unless stated) Dividends from ABC Corp. a domestic corp Php 1,000,000
A taxpayer earned the following incomes (gross amounts) in 2020: (Assume source is Phils unless stated)
Dividends from ABC Corp. a domestic corp Php 1,000,000
Dividends from XYZ Corp. a foreign corp* (dominant income is abroad) Php 1,000,000
Interest income from long-term investments (6th year) Php 1,000,000
Interest income from short-term deposits Php 1,000,000
Raffle Prize (car) Php 1,000,000
Royalty Php 1,000,000
*Assuming tax treaty rate is 10%
Compute the ordinary/active income if taxpayer is a domestic corporation:
Group of answer choices
Php 3,000,000
Php 5,000,000
Php 6,000,000
Php 4,000,000
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