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Income Taxation Law Chapter 3: Persons Subject to Income Tax
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Income Taxation Law Chapter 3: Persons Subject to Income Tax

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Questions and Answers

What is the primary characteristic of a joint account?

  • Merchants contribute capital and share favorable and unfavorable results (correct)
  • It is a type of tax rate applicable to corporations
  • It is a tax obligation of online entities
  • It is a type of online business transaction
  • What is the tax rate applicable to special aliens?

  • 20% or 25% on taxable income
  • 8% on optional gross income
  • 35% and 25% on fringe benefits
  • 15% on gross income (correct)
  • What is the tax rate on capital gains from shares not traded through the stock exchange?

  • 35% on fringe benefits
  • 6% on real property
  • 15% on shares not traded through the stock exchange (correct)
  • 20% or 25% on taxable income
  • What is the minimum corporate income tax rate effective from July 1, 2020 to June 30, 2023?

    <p>1% on taxable income</p> Signup and view all the answers

    What type of online business transaction involves the sale of goods or services through the internet?

    <p>Online shopping or online retailing</p> Signup and view all the answers

    How do merchants benefit from a joint account, and what are the implications of this arrangement?

    <p>Merchants benefit from a joint account by sharing contributions and participating in both favorable and unfavorable results in a predetermined proportion. This arrangement allows them to distribute risks and rewards, promoting cooperation and shared responsibility.</p> Signup and view all the answers

    Explain the difference between the gross income tax rates applicable to NRANETB and special aliens.

    <p>NRANETB is subject to a gross income tax rate of 25%, while special aliens are subject to a gross income tax rate of 15%.</p> Signup and view all the answers

    Distinguish between the tax obligations of online businesses and those of traditional offline businesses.

    <p>Same tax rules apply to both online and offline businesses; the mode of conducting business (online or offline) does not affect the tax obligations.</p> Signup and view all the answers

    What are the key tax implications for corporations, and how do these differ from those applicable to individuals?

    <p>Corporations are subject to a flat rate of 20% or 25% on taxable income, while individuals are subject to a graduated income tax rate ranging from 0% to 35%. Corporations are also subject to other taxes, such as the minimum corporate income tax rate and the gross Philippine billings tax.</p> Signup and view all the answers

    How do capital gains taxes on real property and shares differ, and what are the implications for investors?

    <p>Capital gains taxes on real property are 6%, while those on shares not traded through the stock exchange are 15%. This disparity can impact investors' decisions on asset allocation and portfolio diversification.</p> Signup and view all the answers

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