INCOME TAXATION
WRITE YOUR ANSWERS IN A ONE-FOURTH SHEET OF PAPER. DO NOT
WRITE ANYTHING ON THIS QUESTIONNAIRE. WORK INDEPENDENTLY.
TRUE or FALSE.
1.   Income items subject to final income tax are no longer subject to basic income tax.
2.   Property dividends issued by domestic corporations are non-taxable.
3.   Interest income on expanded foreign currency deposit in the Philippines by a non-
resident citizen is imposed with a final tax at the rate of 15%.
4.   Capital gains from sale of real property located in the Philippines is taxed at 6% of the
sales price or the fair market value, whichever is higher.
5.   Cash dividends from a foreign corporation is imposed with a final tax at the rate of
10%.
6.   Interest income on a 3½ year time deposit is imposed with a final tax at the rate of
12%.
7.   Interest income on bank deposits in the Philippines is imposed with a final tax at the
rate of 20%.
8.   Informer’s reward is imposed with a final tax at the rate of 10%.
9.   Lotto winnings of 10,000.00 or less is subject to basic income tax.
10.   If a real property classified as capital asset is sold to the government, the taxpayer has
the option either to be subject to final income tax or to be subject to basic income tax.
11.   Gains from sale of real property considered as a principal residence may be exempt
from capital gains tax.
12.   Gains from sale of shares of stocks thru the stock exchange is not subject to capital
gains tax.
13.   Gains from sale of shares of stocks issued by a foreign corporation is subject to basic
income tax.
14.   A partner’s share in the distributable net income of an ordinary partnership is subject
to 10% final tax.
15.   A partner’s share in the distributable net income of general professional partnership is
subject to 10% final tax.
16.   Royalty income from books, literary works, and musical compositions for works
abroad earned by non-resident alien not engaged in trade or business in the Philippines
are subject to basic income tax.
17.   Winnings in the Philippines not exceeding 10,000.00 earned by resident citizens are
subject to final income tax at the rate of 10%
18.   Capital gains tax from the sale of real properties in the Philippines must be settled
within a period of thirty (30) days from the date of sale.
19.   Capital gains tax from the sale of shares of stocks must be settled within a period of
thirty (30) days from the date of sale.
20.   To be entitled to the principal residence exemption from capital gains tax, the proceeds
of the sale of the old principal residence must be utilized to purchase or construct a
new principal residence within a period of one hundred eighty (180) days from the
date of sale.
=END=
INCOME TAXATION
WRITE YOUR ANSWERS IN A ONE-FOURTH SHEET OF PAPER. DO NOT
WRITE ANYTHING ON THIS QUESTIONNAIRE. WORK INDEPENDENTLY.
TRUE or FALSE.
1.   Income items subject to final income tax are no longer subject to basic income tax.
2.   Property dividends issued by domestic corporations are non-taxable.
3.   Interest income on expanded foreign currency deposit in the Philippines by a non-
resident citizen is imposed with a final tax at the rate of 15%.
4.   Capital gains from sale of real property located in the Philippines is taxed at 6% of the
sales price or the fair market value, whichever is higher.
5.   Cash dividends from a foreign corporation is imposed with a final tax at the rate of
10%.
6.   Interest income on a 3½ year time deposit is imposed with a final tax at the rate of
12%.
7.   Interest income on bank deposits in the Philippines is imposed with a final tax at the
rate of 20%.
8.   Informer’s reward is imposed with a final tax at the rate of 10%.
9.   Lotto winnings of 10,000.00 or less is subject to basic income tax.
10.   If a real property classified as capital asset is sold to the government, the taxpayer has
the option either to be subject to final income tax or to be subject to basic income tax.
11.   Gains from sale of real property considered as a principal residence may be exempt
from capital gains tax.
12.   Gains from sale of shares of stocks thru the stock exchange is not subject to capital
gains tax.
13.   Gains from sale of shares of stocks issued by a foreign corporation is subject to basic
income tax.
14.   A partner’s share in the distributable net income of an ordinary partnership is subject
to 10% final tax.
15.   A partner’s share in the distributable net income of general professional partnership is
subject to 10% final tax.
16.   Royalty income from books, literary works, and musical compositions for works
abroad earned by non-resident alien not engaged in trade or business in the Philippines
are subject to basic income tax.
17.   Winnings in the Philippines not exceeding 10,000.00 earned by resident citizens are
subject to final income tax at the rate of 10%
18.   Capital gains tax from the sale of real properties in the Philippines must be settled
within a period of thirty (30) days from the date of sale.
19.   Capital gains tax from the sale of shares of stocks must be settled within a period of
thirty (30) days from the date of sale.
20.   To be entitled to the principal residence exemption from capital gains tax, the proceeds
of the sale of the old principal residence must be utilized to purchase or construct a
new principal residence within a period of one hundred eighty (180) days from the
date of sale.
=END=