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Questions and Answers
Which of the following is considered an item of Gross Income Subject to Regular Income Tax?
Which of the following is considered an item of Gross Income Subject to Regular Income Tax?
- Scholarship grants
- Gifts
- Inheritance
- Dividends (correct)
What type of employee benefits are NOT considered compensation income subject to regular tax?
What type of employee benefits are NOT considered compensation income subject to regular tax?
- Health insurance benefits
- Fringe benefits of managerial and supervisory employees (correct)
- Meal allowances
- Retirement benefits
How is Gross Income from the conduct of trade or business determined?
How is Gross Income from the conduct of trade or business determined?
- Sales/Revenues/Receipts/Fees minus Cost of Sales/Cost of Services (correct)
- Gross salary minus business expenses
- Net profit after tax
- Total assets minus liabilities
Which type of gains are subject to regular income tax?
Which type of gains are subject to regular income tax?
Which of the following is NOT an item of Gross Income Subject to Regular Income Tax?
Which of the following is NOT an item of Gross Income Subject to Regular Income Tax?
Flashcards
Dividends
Dividends
Payments made to shareholders from a company's profits.
Gross Income (Trade/Business)
Gross Income (Trade/Business)
Income calculated as Sales/Revenues/Receipts/Fees minus Cost of Sales/Cost of Services.
Gains from Dealings in Properties
Gains from Dealings in Properties
Profits from buying and selling assets.
Non-Taxable Compensation: Rank and File Benefits
Non-Taxable Compensation: Rank and File Benefits
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Interest Earned on Savings Account
Interest Earned on Savings Account
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Study Notes
Gross Income and Taxation
- Gross income subject to regular income tax includes earnings from services, such as wages, salaries, and commissions.
- Employee benefits that are NOT considered compensation income subject to regular tax include meals and lodging furnished for the convenience of the employer, and certain transportation benefits.
Gross Income from Trade or Business
- Gross income from the conduct of trade or business is determined by subtracting the cost of goods sold and other business expenses from total sales revenue.
Taxable Gains
- Long-term capital gains are subject to regular income tax, including gains from the sale of assets held for more than one year.
Non-Taxable Income
- Gifts, inheritances, and bequests are NOT considered items of gross income subject to regular income tax.
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