Introduction of Income Taxation PDF

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TF There are two types of regular income tax: proportional income tax corporations and progressive income tax for individuals. true TF Non-Resident Alien Engaged in trade or Business (NRA-NETBs) and Non Resident Foreign Corporations (NRFCs) are also subject to regular income tax. false TF All taxpay...

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TF There are two types of regular income tax: proportional income tax corporations and progressive income tax for individuals. true TF Non-Resident Alien Engaged in trade or Business (NRA-NETBs) and Non Resident Foreign Corporations (NRFCs) are also subject to regular income tax. false TF

All taxpayers are subject to final tax.

false

TF

Taxable income is synonymous to net income. false

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

All taxpayers are subject to regular income tax. true

TF Employed taxpayers can claim expense from their employment as deductions against their compensation income. false TF Items of gross income subject to final tax and capital gains tax are excluded in gross income subject to regular income tax. true TF The P250,000 income tax for individuals is designed to be in lieu of their personal and business expenses. false TF

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

MC The general rule in income taxation is Final income taxation Incorrect Capital gains taxation Incorrect Regular income taxation Correct Fringe benefit taxation Incorrect MC

Active income is subject to Final tax Incorrect

Regular tax Any of these

Correct Capital gains tax Incorrect

MC

The net amount of regular income subject to regular tax is called Compensation income Incorrect Net income Incorrect Incorrect

MC

Which is not generally subject to regular income tax? Compensation income Incorrect Business income Incorrect Professional income Incorrect Passive income Correct

MC What are allowable deductions against gross income? support Incorrect Personal expenses by the taxpayer employment Incorrect

Incorrect

Taxable income Correct Gross income

Business expenses Correct Family Incorrect Expenses of

MC only

Deductions are allowed to Employed taxpayers Incorrect Individual taxpayers Incorrect Corporate taxpayers only Incorrect Taxpayers engaged in business Correct

MC Personal exemptions are allowed Employed taxpayers taxpayers only Correct Corporate taxpayers only Incorrect Incorrect

Incorrect Individual Taxpayers engaged in business

MC Which is not a feature of the regular income tax? Net income tax Incorrect Final withholding tax Correct Annual tax Incorrect Creditable withholding tax Incorrect MC Which is true with the final withholding tax? The taxpayer still needs to file an annual consolidated return. Incorrect It applies to all items of gross income Incorrect It constitutes a partial payment of income tax. Incorrect It applies to certain passive income Correct MC

Which is not true with the creditable withholding tax? advances to the annual tax due Incorrect no need to pay further taxes Correct need to file annual income return Incorrect applicable to items of gross income Incorrect...