Corporate Income Tax Calculation Quiz
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Questions and Answers

What is the income tax due for Dark Desire Corporation if it is classified as a domestic corporation?

  • P70,000 (correct)
  • P40,000
  • P100,000
  • P50,000

    • If Dark Desire Corporation is a resident foreign corporation, what is the income tax due?

  • P50,000
  • P100,000
  • P70,000 (correct)
  • P40,000

    • What will be the tax liability if Dark Desire Corporation is classified as a non-resident foreign corporation?

  • P100,000
  • P175,000
  • P50,000
  • P75,000 (correct)

    • What is the expected tax amount for a private proprietary educational institution or a non-profit hospital if most of its income is from related activities?

    <p>P35,000</p> Signup and view all the answers

    What is the income tax due for Dark Desire Corporation if it is classified as a non-profit entity?

    <p>P0</p> Signup and view all the answers

    If Dark Desire Corporation is a government-owned and controlled corporation, what tax amount is due?

    <p>P0</p> Signup and view all the answers

    What would be the tax liability for Dark Desire Corporation if it were classified as an international carrier?

    <p>P17,500</p> Signup and view all the answers

    What tax amount is due if Dark Desire Corporation is classified as a non-resident owner or lessor of aircraft?

    <p>P31,500</p> Signup and view all the answers

    What is the total income tax for a private school according to the provided data?

    <p>P250,000</p> Signup and view all the answers

    If a non-profit school uses all its income for educational purposes, what is the income tax due?

    <p>P0</p> Signup and view all the answers

    What is the income tax computed for a private school with P5,000,000 gross income and P2,000,000 net income, where 60% of net income is non-academic?

    <p>P360,000</p> Signup and view all the answers

    What is the tax due and payable for LingkodBayan Corporation in 2024 based on the data given?

    <p>P120,000</p> Signup and view all the answers

    According to the information provided, what is the tax due and payable by LingkodBayan Corporation in 2026?

    <p>P0</p> Signup and view all the answers

    What is the total net income from the regular banking unit (RBU) of the large domestic bank?

    <p>P1,200,000</p> Signup and view all the answers

    How much income did the large non-profit, non-stock school generate from related activities?

    <p>P2,400,000</p> Signup and view all the answers

    Calculate the total tax due for the domestic shipping carrier based on the provided gross receipts and deductions.

    <p>P375,000</p> Signup and view all the answers

    What is the percentage of income derived from unrelated activities for the non-profit association?

    <p>60%</p> Signup and view all the answers

    What is the total net income reported by the shipping company from incoming shipments?

    <p>P2,000,000</p> Signup and view all the answers

    What is the total amount of expenses incurred in connection with non-related activities by the non-profit, non-stock school?

    <p>P1,500,000</p> Signup and view all the answers

    Compute the total final tax based on the net income as given for the large domestic bank.

    <p>P300,000</p> Signup and view all the answers

    What is the gross income from non-residents for the large domestic bank?

    <p>P1,500,000</p> Signup and view all the answers

    What is the branch profit remittance tax for the resident foreign corporation branch?

    <p>P0</p> Signup and view all the answers

    What is the income tax payable in the second quarter for Calatrava Corporation?

    <p>P240,000</p> Signup and view all the answers

    Based on the information given, what is the approximate total income tax liability for the year 2026 for Calatrava Corporation?

    <p>P680,000</p> Signup and view all the answers

    What is the income tax payable in the fourth quarter for Calatrava Corporation?

    <p>P600,000</p> Signup and view all the answers

    What can be inferred about the excess MCITs for the years 2024 and 2025 for Calatrava Corporation?

    <p>They reduce the income tax liability for subsequent years.</p> Signup and view all the answers

    What is the Minimum Corporate Income Tax (MCIT) for the taxpayer?

    <p>P40,000</p> Signup and view all the answers

    Assuming the taxpayer is a domestic corporation, what is the tax due?

    <p>P50,000</p> Signup and view all the answers

    What tax amount is due if the corporation is a resident foreign corporation?

    <p>P12,000</p> Signup and view all the answers

    What is the income tax due for the MSME corporation in 2027?

    <p>P0</p> Signup and view all the answers

    What is the tax due for the MSME corporation in 2028?

    <p>P70,000</p> Signup and view all the answers

    What is the total gross income for the corporate taxpayer from both the Philippines and abroad?

    <p>P5,000,000</p> Signup and view all the answers

    What is the net income from operations for the corporate taxpayer?

    <p>P200,000</p> Signup and view all the answers

    Which year did the MSME corporation first show a net income?

    <p>2028</p> Signup and view all the answers

    Study Notes

    Corporate Income Tax Due

    • Domestic Corporation: The income tax due is 25% of the taxable income, which is P350,000. Therefore, the tax due is P87,500.
    • Resident Foreign Corporation: The income tax due is 25% of the taxable income, which is P350,000. Therefore, the tax due is P87,500.
    • Non-Resident Foreign Corporation: The income tax due is 25% of the taxable income earned in the Philippines, which is P200,000. Therefore, the tax due is P50,000.
    • Private Proprietary Educational Institution or a Non-Profit Hospital Majority of its Income is from Related Activities: The income tax due is 10% of the taxable income, which is P350,000. Therefore, the tax due is P35,000.
    • Non-Profit Entity: The income tax due is 10% of the taxable income, which is P350,000. Therefore, the tax due is P35,000.
    • Government-Owned and Controlled Corporation: A government-owned and controlled corporation is exempt from income tax.
    • International Carrier: The income tax due is 2.5% of the gross income derived from sources within the Philippines, which is P400,000. Therefore, the tax due is P10,000.
    • Offshore Banking Unit: The income tax due is 10% of the taxable income, which is P350,000. Therefore, the tax due is P35,000.
    • Non-Resident Cinematographic Film Owner, Distributor or Lessor: The income tax due is 25% of the gross income, which is P700,000. Therefore, the tax due is P175,000.
    • Non-Resident Owner or Lessor of Vessels: The income tax due is 7.5% of the gross income, which is P5,000,000. Therefore, the tax due is P375,000.
    • Non-Resident Owner or Lessor of Aircraft, Machineries, and Other Equipment: The income tax due is 25% of the gross income from sources within the Philippines, which is P2,000,000. Therefore, the tax due is P500,000.
    • Non-Profit Association, 60% of its Income Was Derived from Unrelated Activities: The income tax due is 25% of the taxable income from unrelated activities, which is 60% of P350,000 or P210,000. Therefore, the tax due is P52,500.

    Large Domestic Bank

    • Total Final Tax: The total final tax is 25% of the net income from the FCDU, which is P2,800,000. Therefore, the total final tax is P700,000.
    • Regular Income Tax: The regular income tax is computed as 25% of the net income from the RBU, which is P1,200,000. Therefore, the regular income tax is P300,000.

    Large Shipping Company

    • Domestic Shipping Carrier: The income tax due is 1% of the gross receipts, which is P5,000,000. Therefore, the tax due is P50,000.
    • Resident International Shipping Carrier: The income tax due is 1% of the gross receipts, which is P5,000,000. Therefore, the tax due is P50,000.

    Large Non-Profit, Non-Stock School

    • Income Tax Due if Income from Non-Related Activities is Not Used Exclusively for Educational Purposes: The income tax due is 25% of the taxable income from non-related activities, which is 60% of the gross income (P4,000,000) or P2,400,000. Therefore, the tax due is P600,000.
    • Income Tax Due if the Taxpayer is a Private School: The income tax due is 10% of the net income, which is P1,000,000. Therefore, the tax due is P100,000.
    • Income Tax Due if All Income of the Non-Profit School is Used for Educational Purposes: Since all income is used for educational purposes, the school is exempt from income tax.
    • Total Income Tax due for Private School with P80 Million Assets. The income tax due is 10% of the net income from sources not related to academic instruction, which is 60% of P2,000,000 or P1,200,000. Therefore, the tax due is P120,000.

    LingkodBayan Corporation

    • Tax Due and Payable in 2024 and 2025: The tax due and payable is the higher of MCIT and RCIT. Therefore, the tax due and payable in 2024 is P120,000 and in 2025 is P220,000.
    • Tax Due and Payable in 2026 and 2027: The tax due and payable is the higher of MCIT and RCIT. Therefore, the tax due and payable in 2026 is P190,000 and in 2027 is P180,000.

    Large Corporate Taxpayer

    • MCIT: The MCIT is computed as 2% of the gross income, which is P5,000,000. Therefore, the MCIT is P100,000.
    • Tax Due if the Taxpayer is a Domestic Corporation: The tax due is the higher of MCIT and RCIT. In this case, RCIT is P22,500 (25% of net income). Therefore, the tax due is P100,000.
    • Tax Due if the Corporation is a Resident Foreign Corporation: The tax due is the higher of the MCIT and RCIT. In this case, RCIT is P37,500 (25% of Philippines net income). Therefore, the tax due is P37,500.

    ### MSME Corporation

    • Income Tax Due in 2027: Since the net income in 2027 is negative, there is no income tax due.
    • Income Tax Due in 2028: The income tax due is 25% of the net income, which is P600,000. Therefore, the tax due is P150,000.

    Resident Foreign Corporation Branch

    • Branch Profit Remittance Tax: The branch profit remittance tax is 15% of the net income. Therefore, the branch profit remittance tax is P22,500.

    Calatrava Corporation

    • Income Tax Payable in the Second Quarter: The income tax payable in the second quarter is the higher of MCIT and RCIT, plus the CWTs. Therefore, the income tax payable is P490,000 (RCIT) + P120,000 (CWTs) = P610,000.
    • Income Tax Payable in the Fourth Quarter: The income tax payable in the fourth quarter is the higher of MCIT and RCIT, plus the CWTs. Therefore, the income tax payable is P700,000 (MCIT) + P160,000 (CWTs) = P860,000.

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    QUIZ - Corporate Income Tax PDF

    Description

    Test your knowledge on corporate income tax due for different types of corporations. This quiz covers scenarios for domestic, resident foreign, non-resident foreign corporations, and non-profit entities. Understand the tax rates and calculations involved for each case.

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