TRUE OR FALSE

1. An individual with both income from business and practice of profession is a mixed income earner.

2. Interest earned by a resident citizen from a personal loan granted to a friend is subject to a final tax of 20%.

3. A non-resident citizen is a citizen of the Philippines who establishes to the satisfaction of the President the fact of his/her physical presence abroad with definite intention to reside therein.

4. Capital gain on the sale of short-term (less than 5 years) domestic bonds by a non- resident citizen is subject to 15% capital gains tax.

5. The sale of real property classified as capital asset located outside the Philippines by a resident alien is not subject to 6% capital gains tax, but to ordinary/regular income tax.

6. The option to be taxed at 8% is irrevocable for the entire taxable year except when the taxpayer has exceeded the VAT threshold of P3,000,000 during the taxable year

7. A VAT self-employed taxpayer whose sales did not exceed P3 million is required to compute his/her income tax using graduated rates of 0% to 35%.