18 Questions
What types of companies are exempt from percentage tax?
Non-life insurance companies
Which of the following is considered a deemed sale under the given text?
Lease of industrial equipment
Under what circumstances would the supply of services by a nonresident person be included in the definition of 'sale or exchange of services'?
When it involves the use of property belonging to a resident person
Which of the following is NOT considered within the scope of 'sale or exchange of services'?
Sale of physical goods
In the context of the provided text, what can be categorized as a supply that is ancillary and subsidiary to another service?
Supply of technical assistance
When does a transaction involving the use of copyright belong to 'sale or exchange of services'?
When it is ancillary to another service
What kind of transfers are described as 'onerous' in the text?
Transfers made in exchange for something valuable
Which type of onerous transfers are subject to capital gains tax?
Transfers made in the ordinary course of business
According to Section 105 of the NIRC, what is defined as 'in the course of trade or business'?
Regular conduct or pursuit of any economic activity
Which type of tax may be shifted to the buyer, transferee, or lessee of goods according to the NIRC?
Value-added tax (VAT)
Who is presumed to be doing business on a going concern basis according to the text?
Persons engaged in business
Which of the following types of sales can be considered zero-rated according to the text?
Onerous sales not in the ordinary course of business
What type of transactions are deemed sale under the NIRC and are subject to VAT?
Transfer, use or consumption in the course of business
When does consignment of goods become a deemed sale if an actual sale is not made?
Within 60 days following the consignment date
In what circumstance is there a change in ownership of a business according to the NIRC?
Incorporation of a single proprietorship
What happens to inventories of taxable goods upon retirement or cessation of business?
They remain VATable
Under what circumstance does VAT apply to goods disposed of or existing as of a certain date?
Under circumstances prescribed by the Secretary of Finance
Which of the following transactions would NOT be considered a deemed sale under the NIRC?
Change in ownership of a partnership
Test your knowledge on transactions deemed as sale under the National Internal Revenue Code (NIRC) which are subject to VAT. Explore scenarios such as the transfer, use, or consumption of goods not in the course of business, distribution to shareholders or creditors, and consignment of goods.
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