Direction. Answer all of the following questions in Philippine setting income taxation. for 10pts

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?

d. Cash dividend from a foreign corporation with Philippine branch

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

b. Property dividend from regional operating headquarters of multinationals

a. Cash dividend from Domestic Corporation

Individual taxpayers not subject to tax under Section 24(A)

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

d. Non-resident aliens not engaged in trade or business on their gross income within the Philippines

c. Non-resident aliens engaged in trade or business on their net income within the Philippines

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

Statement 1: Passive income 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

c. Statement 1 is false but statement 2 true

d. Statements 1 and 2 are true

a. Statements 1 and 2 are false

b. Statement 1 is true but statement 2 is false

Final tax is generally withheld

On Passive Income From Philippine sources

a. Yes Yes

b. No No

c. Yes No

d. No Yes

Mr. Peter Senen, a Filipino overseas contract worker and his spouse, a resident of the Philippines, have a joint US Dollar account at PNB- Quezon City. Their gross interest earnings in 2020 from the bank deposit amounted to US$8,000. Which of the following statement is correct?

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

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

a. The interest income shall be treated as tax exempt because Mr. Peter Senen is a non-resident citizen

b. The interest income shall be taxable in full because Mr. Peter Senen and his spouse are both Filipino citizens

Cash and/or property dividends shall be subject to 10% final tax withholding tax if actually or constructively receipt from

l. Domestic companies or from joint stock companies

ll. Insurance or mutual companies

lll. Regional operating headquarters of multinationals

lV. Philippines branch of a foreign corporation

A resident citizen received a prize of P50,000. Which of the following statements is correct in connection with the imposition of final tax on the prize?

d. The whole amount shall be subject to 25% final tax

b. The first P10,000 is exempt from tax, the remaining P30,000 is subject to 20% final tax

c. The whole amount shall be subject to 20% final tax

a. The first P10,000 is subject to Section 24 (A), the remaining P30,000 is subject to 20% final tax

Which of the following passive income is exempt from tax when received by resident citizen and non-resident aliens engaged in trade or business in the Philippines, but subject to 25% final tax when received by non-resident aliens not engaged in trade or business?

d. Other winnings

a. Prizes of more than P10,000

b. Interest income from long-term deposit or instrument

c. Yield or any other monetary benefit from trust funds and similar arrangements

A resident citizen received a raffle prize of P40,000 from NBA while watching a basketball game between LA and Boston Celtics in LA California, USA. Which of the following statements is correct?

c. The whole amount of P40,000 shall be subject to 20% final tax

d. The first P10,000 shall be exempt from tax while the remaining P30,000 is subject to 20% final tax

a. The whole amount of P40,000 is part of his taxable income

b. The first P10,000 is part of his taxable income while the remaining P30,000 is subject to 20% final tax

Which of the following income is taxable in the Philippines?

a. Interest income in the Philippines earned by a non-resident alien

b. Cash dividend received by a non- resident citizen from a foreign corporation

d. Business Income earned in USA by a US citizen residing in Cebu.

c. Salary received from working abroad by a non-resident citizen