Income Tax Payable with Withholding Tax

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What is the taxable income of ABC Corporation?

P40,000 (correct)

P500,000

P460,000

P495,000

What is the income tax payable (excess payments) for the year using 25%?

P10,000 (correct)

P20,000

P15,000

P5,000

What is the withholding tax rate for professional fees if the gross income for the current year did not exceed P3M?

20%

10%

5% (correct)

15%

What is the withholding tax rate for rentals on gross rental or lease of personal property in excess of P10,000 annually?

5% Signup and view all the answers

What is the withholding tax rate for income payments made by top withholding agents to their local/resident suppliers other than those covered by other rates of withholding tax?

2% Signup and view all the answers

What is the requirement for a domestic corporation to be eligible for foreign tax credit?

The corporation must be taxable on income derived from sources within and without. Signup and view all the answers

What is the amount of the personal membership fee paid quarterly by MHLCO?

P5,000 Signup and view all the answers

What is the total amount of donations received from domestic and foreign sources?

P20,000,000 Signup and view all the answers

What is the percentage used to compute the Fringe Benefit Tax if the employee is a non-resident alien individual not engaged in trade or business within the Philippines?

75% and 25% Signup and view all the answers

What is the rate of income tax applicable to the corporation?

20% Signup and view all the answers

What is an example of a fringe benefit that is not limited to the ones listed?

Education expense account Signup and view all the answers

What is the total amount of withholding tax on rent income?

P25,000 Signup and view all the answers

What is the Fringe Benefit Tax if the employee is a resident citizen of the Philippines?

P2,692.31 Signup and view all the answers

What is the total amount of income tax payable by the corporation?

P69,000 Signup and view all the answers

What is the treatment of excess income tax payments?

The taxpayer has the option to file a claim for refund or carry-over its excess income tax payments Signup and view all the answers

What is the purpose of the Fringe Benefit Tax?

To provide additional income to the government Signup and view all the answers

What is one of the income tax credits available to the corporation?

Creditable Withholding Tax at Source – 2307 Signup and view all the answers

What is the tax rate imposed on interest income derived from a depositary under the Expanded Foreign Currency Deposit System?

0% Signup and view all the answers

What is the tax base for computing fringe benefit tax?

Grossed-up Monetary Value (GMV) of the fringe benefit Signup and view all the answers

What is the tax rate imposed on dividend income from a domestic corporation, assuming the tax sparing rule applies?

15% Signup and view all the answers

How is the Grossed-up Monetary Value (GMV) of a fringe benefit determined for a Non-Resident Alien Not Engaged in Trade or Business (NRANETB)?

By dividing the actual monetary value of the fringe benefit by 75% Signup and view all the answers

What is the tax treatment of fringe benefits received by rank and file employees?

Included in the employee's taxable income Signup and view all the answers

What is the tax base for capital gain from the sale of shares of stock not traded in the local stock exchange?

P100,000 Signup and view all the answers

What is the surcharge imposed in addition to the tax required to be paid?

25% or 50% of the amount due Signup and view all the answers

What is the maximum aggregate amount of penalty for failure to file information returns during a calendar year?

P25,000 Signup and view all the answers

What is the interest rate for deficiency interest and delinquency interest?

12% Signup and view all the answers

When does the deficiency interest run from?

The earlier between the date the tax is due and the date of notice and demand by the CIR Signup and view all the answers

Can deficiency interest and delinquency interest be imposed simultaneously?

No Signup and view all the answers

What is the total amount due on February 10, 2023, for Mr. A?

P1,632,000.00 Signup and view all the answers