Business Taxes Multiple Choice Quiz
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Questions and Answers

Which of the following is true about Business Taxes?

  • Imposed upon onerous transfers such as sale, barter, exchange or importation. (correct)
  • Imposed upon gratuitous transfers such donation intervivos and donation mortis causa.
  • Imposed upon gratuitous and onerous transfers.
  • None of the above

    • Under the tax code, which of the following are major internal revenue business taxes?

  • Value added tax
  • Percentage tax
  • Excise tax
  • Income tax (correct)

    • Which statement is correct?

  • Without a business pursued in the Philippines (except importation) by the taxpayer, value added tax cannot be imposed.
  • "In the course of trade or business" means the regular conduct or pursuit of a commercial or an economic activity, including transactions incidental thereto, by any person regardless of whether or not the person engaged therein is a non-stock, non-profit private organization or government entity. (correct)
  • Services rendered in the Philippines by a non-resident foreign person shall be considered as being rendered in the course of trade or business even if the performance is not regular.
  • All of the above

    • Which statement is false regarding transactions considered "in the course of trade or business"?

    <p>Gratuitous transfers including donation intervivos and donation mortis causa.</p> Signup and view all the answers

    In the context of the VAT law, which of the following statements is correct?

    <p>Both 'a' and 'b'</p> Signup and view all the answers

    Which statement correctly describes business taxes?

    <p>Both statements are correct</p> Signup and view all the answers

    In the context of the VAT law, which statement about gross selling price is correct?

    <p>All of the above</p> Signup and view all the answers

    Which of the following could be imposed together with VAT according to the VAT law?

    <p>All of the above</p> Signup and view all the answers

    Study Notes

    Business Taxes Overview

    • Business taxes refer to levies imposed on business activities, including income, sales, and payroll taxes.
    • Properly understanding business taxes is crucial for compliance and financial planning.

    Major Internal Revenue Business Taxes

    • Key taxes under the tax code include income tax, payroll tax, and corporate tax.
    • These taxes ensure that businesses contribute to government funding and public services.

    True and False Statements

    • "In the course of trade or business" includes transactions that are regular, ongoing, and aim for profit.
    • False statements typically involve misinterpretation of what constitutes business income or deductible expenses.

    VAT Law Context

    • Value Added Tax (VAT) is a consumption tax placed on goods and services at each stage of production or distribution.
    • Correct statements about VAT relate to how it is charged on sales and the implications for businesses.

    Business Taxes Descriptions

    • Business taxes are levied to fund government operations, infrastructure, and public welfare.
    • They can apply to various income levels, depending on departmental classification and revenue generation.

    Gross Selling Price in VAT Law

    • The gross selling price refers to the total amount before any deductions for VAT or other taxes.
    • Proper calculation of the gross selling price is essential for VAT compliance and reporting.

    VAT and Additional Impositions

    • Excise tax and local business taxes can be imposed alongside VAT as part of comprehensive taxation.
    • These additional taxes can significantly affect the overall cost of goods sold and pricing strategy.

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    Description

    Test your knowledge of business taxes with this multiple choice quiz. Questions cover topics like types of business taxes, internal revenue taxes, and tax codes.

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