TRUE OR FALSE

$1.$ The $P $250,000$$ income tax exemption for individuals is designed to be in lieu of their personal and business expenses.

$2.$ There are two types of regular income tax: proportional income tax for corporations and progressive income tax for individuals.

$3.$ NRA$-$NETBs and NRFCs are also subject to regular income tax.

$4.$ All taxpayers are subject to final tax.

$5.$ Taxable income is synonymous with net income.

$6.$ For all taxpayers, taxable income means the pertinent items of gross income not subject to capital gains tax and final tax less allowable deductions.

$7.$ All taxpayers are subject to regular income tax.

$8.$ Employed taxpayers can claim expenses from their employment as deductions against their compensation income.

$9.$ Items of gross income subject to final tax and capital gains tax are excluded from its gross income subject to regular income tax.

$10.$ Non$-$taxable compensation are items of compensation that are excluded against gross income.

TRUE OR FALSE

$1.$ The tax due of corporations is determined by multiplying their total gross income by $$25\backslash \%$$$.$

$2.$ The taxable compensation income is computed as gross compensation less than the non$-$taxable compensation income.

$3.$ The deadline of filing the corporate quarterly income tax return is the same with the deadline of the quarterly income tax return of individuals.

$4.$ Business expenses can be deducted against all types of gross income subject to regular tax.

$5.$ No deduction shall be allowed against taxable income.

$6.$ Only corporations may incur deductions against gross income.

$7.$ The gross income from business is measured as sales or gross receipts less cost of sales or cost of services.

$8.$ The tax due of individuals is determined by means of a schedule of tax rates.

$9.$ The deadline of the annual income tax return of corporations using the calendar year is similar to the deadline fixed for individual taxpayers.

$10.$ Every individual taxpayer is exempt from income tax on compensation up to P$250,000$ annually but the same exemption does not apply to business income.

MULTIPLE CHOICE

$1.$ Which is not generally subject to regular income tax?

a$.$ Compensation income

c$.$ Professional income

b$.$ Business income

d$.$ Passive income

$2.$ The general rule in income taxation is

a$.$ final income taxation.

c$.$ regular income taxation.

b$.$ capital gains taxation.

d$.$ fringe benefit taxation.

$3.$ Active income is subject to

a$.$ regular tax.

c$.$ final tax.

b$.$ capital gains tax.

d$.$ any of these

$4.$ Question $3$ and $4$ are based on the following:

A$.$ Regular tax

B$.$ Final tax

C$.$ Capital gains tax

Which of the foregoing are passive incomes subject to$?$

a$.$ A only

c$.$ Both $A$ and $B$

b$.$ B only

d$.$ Either A or B

$5.$ Which of the foregoing are capital gains subject to$?$

a$.$ A only

c$.$ Either A or C

b$.$ C only

d$.$ Both $A$ and $C$

$6.$ The net amount of regular income subject to regular tax is called

a$.$ taxable income.

c$.$ net income.

b$.$ compensation income.

d$.$ gross income.

$7.$ What are allowable deductions against gross income?

a$.$ Business expenses

c$.$ Personal expenses by the taxpayer

b$.$ Family support

d$.$ Expenses of employment

$8.$ Deductions are allowed to

a$.$ employed taxpayers.

c$.$ corporate taxpayers only.

b$.$ individual taxpayers only.

d$.$ taxpayers engaged in business.

$9.$ Personal expenses are

a$.$ Non$-$deductible by employed taxpayers.

b$.$ Non$-$deductible by any taxpayer.

c$.$ Deductible by employed taxpayers.

d$.$ Deductible by any individual taxpayers.

$10.$ Which is not a feature of the regular income tax?

a$.$ Net income tax

c$.$ Annual tax

b$.$ Final withholding tax

d$.$ Creditable withholding tax