18 Questions
What types of income are considered for computing the gross receipts tax?
Interest income with maturity of less than 5 years and rentals
How is the gross receipts tax computed for interest income with maturity of less than 5 years?
By applying a 5% tax rate to the total income
What type of income is excluded from the computation of gross receipts tax?
Net trading gain
What impact does having a net trading loss have on the gross receipts tax computation?
Decreases the tax amount for the month
In April, what is the total gross receipts tax payable by The Filipino Bank?
$9,200
Which type of income has the highest impact on the gross receipts tax calculation?
Rentals
What is the figure to be reported in the monthly return for net trading gain/loss?
The sum of net trading gain/loss since the first month of the taxable year
When is a net trading loss deductible?
Only from the net trading gain
What is the Gross Receipts Tax rate for interest income with a maturity period of 5 years or less for non-bank financial intermediaries?
5%
What type of financial intermediaries are subject to Gross Receipts Tax?
Non-bank financial intermediaries
Income from financial leasing falls under which category for Gross Receipts Tax purposes?
Taxed at 1%
Which item is not considered for Gross Receipts Tax under non-bank financial intermediaries?
Dividends income
What is the tax rate on interest, commissions, and discounts from lending activities with a maturity period of more than 5 years?
1%
What is the tax rate on dividends and equity shares and net income of subsidiaries?
0%
What is the tax rate on royalties, rentals of property, real or personal, profits, from exchange and all other items treated as gross income?
7%
What is the tax rate on net trading gains within the taxable year on foreign currency, debt securities, derivatives, and other similar financial instruments?
0%
If the maturity period is shortened through pretermination, how is the maturity period reckoned for the purposes of classifying the transaction and applying the correct tax rate?
The maturity period is reckoned to end as of the date of pretermination.
Which of the following is NOT a source of gross receipts subject to tax for banks and non-bank financial intermediaries performing quasi-banking functions?
Payments for news services
Explore the roles and functions of banks and financial intermediaries in lending, investing, and gathering funds from the public. Learn about the different operations carried out by these entities in the financial sector.
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