Philippine Income Tax and Percentage Tax Quiz
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Questions and Answers

What is the Capital Gains Tax rate based on the given information?

  • 6% (correct)
  • 3%
  • 4%
  • 5%
  • Which value is used as the base for computing the CGT if the selling price is higher than the fair market value?

  • Estate tax
  • Fair market value (correct)
  • Donor's tax
  • Capital gains tax
  • What determines the Donor's Tax for each calendar year?

  • Fair market value of assets
  • Estate Tax amount
  • Total gifts in excess of P250,000 (correct)
  • Total property value
  • What does the Estate Tax apply to according to the text?

    <p>Transmitting property upon death</p> Signup and view all the answers

    What is NOT true about Quarterly Income Tax Payments?

    <p>Applies only to businesses</p> Signup and view all the answers

    When is an individual exempt from Percentage Tax?

    <p>When engaging in specific types of business activities</p> Signup and view all the answers

    Who are required to file Percentage Tax?

    <p>Non-VAT registered persons with gross sales above P3M</p> Signup and view all the answers

    When do self-employed individuals and corporate taxpayers pay their quarterly income tax?

    <p>In the first three quarters of the fiscal year</p> Signup and view all the answers

    What is the standard deduction for the estate's net worth in terms of income tax?

    <p>P5M</p> Signup and view all the answers

    Which individuals are exempt from paying Percentage Tax?

    <p>VAT-registered entities</p> Signup and view all the answers

    What tax is imposed on all annual profits from property, ownership, profession, trades, or offices?

    <p>Income Tax</p> Signup and view all the answers

    What is the applicable rate for capital gains tax on real property in the Philippines?

    <p>6% on the gross selling price</p> Signup and view all the answers

    Which of the following is considered a capital asset?

    <p>Shares of stock traded in the stock exchange</p> Signup and view all the answers

    Who is responsible for paying the capital gains tax in the Philippines?

    <p>Seller of the property</p> Signup and view all the answers

    When is Percentage Tax typically paid in the Philippines?

    <p>Monthly</p> Signup and view all the answers

    Which of the following entities are usually exempt from paying Percentage Tax in the Philippines?

    <p>Non-profit organizations</p> Signup and view all the answers

    What is the general requirement for filing Percentage Tax in the Philippines?

    <p>$500,000 annual revenue</p> Signup and view all the answers

    Study Notes

    Capital Gains Tax (CGT)

    • CGT is a tax imposed on gains from the sale, exchange, or disposition of capital assets in the Philippines.
    • The tax rate is 6% of the selling price or current fair market value, whichever is higher.
    • The seller pays the CGT.
    • For shares of stock not traded in the stock exchange, the flat rate is 15%.
    • CGT is computed based on the gross selling price or current fair market value, whichever is higher.

    Documentary Stamp Tax

    • A tax on documents, instruments, loan agreements, and papers evidencing acceptance, assignment, sale, or transfer of an obligation, rights, or property incident thereto.
    • The tax rate is 1.5% of the selling price or consideration or fair market value, whichever is higher.

    Donor's Tax

    • A tax on donations or gifts exceeding PHP 250,000.
    • The tax rate is 6% of the total gifts in excess of PHP 250,000.

    Estate Tax

    • A tax on the privilege of transmitting property upon death of the owner.
    • The tax rate is a flat rate of 6% of the estate's net worth, plus a standard deduction of PHP 5 million.

    Income Tax

    • A tax on annual profits made from property, ownership, profession, trades, or offices.
    • Self-employed individuals and corporate taxpayers pay quarterly income tax returns for the taxable year.

    Percentage Tax

    • A business tax imposed on persons or entities who sell, or lease goods, properties, or services in the course of trade or business.
    • The tax is applicable to those whose gross annual sales or receipts do not exceed PHP 3 million and are exempt from value-added tax (VAT).

    Types of Taxes

    • National Taxes: paid to the National Government through the Bureau of Internal Revenue.
    • Local Taxes: levied by local government units (provinces, municipalities, cities, and barangays) to individuals or juridical persons in the Philippines.

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    Description

    Test your knowledge on Philippine income tax regulations, including flat rate of 6% of the estate's net worth, standard deductions, and quarterly payments. Also covers percentage tax imposed on businesses selling goods, properties, or services.

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