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RMC 50-2018, in relation to Revenue Regulation 8-2018, enumerates those who are not qualified to
avail of the 8% income tax option, determine the exception
a. VAT-registered taxpayers
b. Non-VAT registered taxpayers whose gross sales and other non-operating income exceeds the
P3,000,000 VAT threshold
c. Those who earns compensation income
d. Individuals enjoying income tax exemption
2. R.A. 10963 requires submission of financial statement to the BIR under the following instances,
except
a. Taxpayer chose itemized deductions and his gross income does not exceed P3,000,000
b. Taxpayer chose itemized deduction and his gross income exceeds P3,000,000
c. Taxpayer opted to be taxed at 8%
d. None of the above
3. Statement 1: Under the TRAIN law, there is no change in the mandatory deductions such as SSS,
Philhealth, etc. from gross compensation of employees.
Statement 2: Under the TRAIN law, there is no change in the taxability of “de minimis” benefits.
a. Only 1 is correct c. Both are correct
b. Only 2 is correct d. Both are incorrect
Lady Grace is an employee of Key Pi Em Gi Drugs Store Philippines, she has been working as
pharmacist for more than 40 years. The firm pays her around P20, 000 per month as salary.
5. Suppose Lady Grace is a qualified PWD, how much can Key Pi Em Gi include the salary as part of its
itemized deduction?
a. 20,000
b. 23,000
c. 24,000
d. 25,000
6. Suppose Lady Grace is a qualified Senior Citizen, how much can Key Pi Em Gi include the salary as
part of its itemized deduction?
a. 20,000
b. 23,000
c. 24,000
d. 25,000
Arnaldo, a VAT taxpayer, operates a convenience store. His total income during the taxable year is
P2,500,000. Sales returns and allowances amounted P100,000, cost of sales is P500,000 and other
expenses is P300,000.
7. How much is his tax due if he signified his intent to be taxed at 8%?
a. P200,000 c. P128,000
b. P192,000 d. P370,000
8. Assume that Arnaldo is an Other Percentage Taxpayer (OPT), how much is his tax due if he signified
his intent to be taxed at 8%?
a. P200,000 c. P128,000
b. P192,000 d. P370,000
10. Suppose Arnaldo is a corporation and earned interest of P200,000, how much is the taxable income?
a. P1,560,000 c. P1,140,000
b. P1,260,000 d. P 960,000
11. Reek Review Center Inc. provides preparatory review services for professional examinees. Reek had
the following expenses:
Compute the amount of direct cost of services to be presented in the income tax return.
a. P1,230,000 c. P1,235,000
b. P1,325,000 d. P1,285,000
A corporate taxpayer had the following income on its fifth year of operations:
12. Assuming the corporation is a domestic corporation, compute the tax still due per BIR Form 1702-
RT.
a. P 0 c. P 4,400,000
b. P 2,900,000 d. P 14,900,000
13. Assuming the corporation is a resident foreign corporation, compute the income tax still due
(refundable).
a. P 0 c. P 500,000
b. (P 100,000) d. P 300,000
14. Jali Be reported the following income tax items for the past 3 years:
2016 2017 2018
NCIT 100,000 130,000 170,000
MCIT 150,000 140,000 130,000
a. 120,000 c. 130,000
b. 110,000 d. 170,000
The following data on income and expense for 2018 were provided as follows:
15. How much capital loss can be claimed as deduction for the current year?
a. P60,000 c. P20,000
b. P40,000 d. P 0
20. How much is the taxable net income using itemized deduction?
a. P3,600,000 c. P2,934,000
b. P2,800,000 d. P 0