Introduction to Banks and Financial Intermediaries

Play an AI-generated podcast conversation about this lesson

What types of income are considered for computing the gross receipts tax?

Rentals only

Interest income only

Net trading gain/(loss)

Interest income with maturity of less than 5 years and rentals (correct)

How is the gross receipts tax computed for interest income with maturity of less than 5 years?

By applying a 7% tax rate to the total income

By reducing the income by 5%

By multiplying the income by the number of years it has matured

By applying a 5% tax rate to the total income (correct)

What type of income is excluded from the computation of gross receipts tax?

Rentals

Net trading gain (correct)

Net trading loss

Interest income with maturity of less than 5 years

What impact does having a net trading loss have on the gross receipts tax computation?

Decreases the tax amount for the month Signup and view all the answers

In April, what is the total gross receipts tax payable by The Filipino Bank?

$9,200 Signup and view all the answers

Which type of income has the highest impact on the gross receipts tax calculation?

Rentals Signup and view all the answers

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 Signup and view all the answers

When is a net trading loss deductible?

Only from the net trading gain Signup and view all the answers

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% Signup and view all the answers

What type of financial intermediaries are subject to Gross Receipts Tax?

Non-bank financial intermediaries Signup and view all the answers

Income from financial leasing falls under which category for Gross Receipts Tax purposes?

Taxed at 1% Signup and view all the answers

Which item is not considered for Gross Receipts Tax under non-bank financial intermediaries?

Dividends income Signup and view all the answers

What is the tax rate on interest, commissions, and discounts from lending activities with a maturity period of more than 5 years?

1% Signup and view all the answers

What is the tax rate on dividends and equity shares and net income of subsidiaries?

0% Signup and view all the answers

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% Signup and view all the answers

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% Signup and view all the answers

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. Signup and view all the answers

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 Signup and view all the answers

Introduction to Banks and Financial Intermediaries

Choose a study mode

Podcast

Questions and Answers