Questions and Answers
RHQ is exempt from withholding tax as an employer.
False
Only the President of the company is authorized to file the income tax return.
False
The income tax return shall consist of a minimum of four (4) pages in paper form or electronic form.
False
The income tax return must be filed by the treasurer or assistant treasurer.
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RHQ and ROHQ are the same type of corporation.
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The income tax return is filed on a quarterly basis.
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Foreign corporations not engaged in trade or business in the Philippines are exempt from filing income tax returns.
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The income tax return shall contain information about corporate profile and other additional information.
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The treasurer or assistant treasurer is not authorized to swear the income tax return.
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Electronic Filing and Payment System (EFPS) is not an option for filing quarterly corporate income tax.
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Study Notes
Taxation of Corporations
- Domestic Corporations, Proprietary Educational Institutions, and Non-Profit Hospitals are taxed at a rate of 10% (before July 1, 2020) and 1% (from July 1, 2020, to June 2023), increasing to 10% (beginning July 1, 2023)
- Resident Foreign Corporations, including International Carriers, are taxed at a rate of 10% of net income
- Non-Resident Foreign Corporations, including cinema owners, vessel lessors, and aircraft owners, are taxed at a rate of 25% of gross income, with possible exemptions
Special Corporations
- Regional Operating Headquarters (ROHQs) are taxed at a rate of 10% (until December 31, 2021) and 25% of net income (beginning January 1, 2022)
- ROHQs are exempt from Minimum Corporate Income Tax (MCIT)
- ROHQs are subject to final withholding taxes and capital gains taxes
Filing of Tax Returns
- The President, Vice President, or other principal officers are responsible for filing income tax returns on behalf of the company
- Quarterly corporate income tax returns must be filed manually through the Electronic Filing and Payment System (EFPS) or electronic BIR forms
- The income tax return must contain corporate profile information and other specified details
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