TRAIN Taxable Income Quiz
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Questions and Answers

What is the definition of 'taxable income' as applied to individuals under the TRAIN?

  • The pertinent items of gross income specified in the Tax Code, less deductions if any, authorized for such types of income by the Tax Code or other special laws.
  • The pertinent items of gross income specified in the Tax Code, less deductions including personal exemptions, if any, authorized for such types of income by the Tax Code or other special laws. (correct)
  • The pertinent items of gross income specified in the Tax Code.
  • The pertinent items of gross income specified in the Tax Code excluding salaries received from employment.

    • How is the income tax due from compensation income calculated under the TRAIN?

  • Based on taxable income after deducting expenses and exemptions
  • Either graduated income tax rate or 8% income tax rate on gross sales/receipts and other non-operating income in excess of P250,000
  • 8% income tax rate on gross sales/receipts and other nonoperating income in excess of P250,000
  • Based on graduated income tax rates (correct)

    • Which of the following may be subject to income tax for a minimum wage earner like Jackie?

  • Overtime pay
  • Hazard pay (correct)
  • Holiday pay
  • Night differential pay

    • Under the CREATE Act, which entity shall not be subject to the Minimum Corporate Income Tax (MCIT)?

    <p>Non-resident foreign corporation</p> Signup and view all the answers

    What type of income derived from sources within the Philippines by a non-resident alien engaged in trade or business is NOT subject to 20% final withholding tax?

    <p>Royalties on books, as well as other literary works and musical compositions</p> Signup and view all the answers

    Why is it important to know the situs of income for tax purposes?

    <p>Some individuals and corporate taxpayers are taxed on their worldwide income while others are taxable only upon income from sources within the Philippines.</p> Signup and view all the answers

    Why may the Congress of the Philippines impose a 5% tax on a specific transaction?

    <p>It is for public purpose</p> Signup and view all the answers

    What power is the BIR exercising when it conducts summary proceedings to collect delinquent taxes and levies real properties?

    <p>Power of Taxation</p> Signup and view all the answers

    Which statement is false regarding the principle of Fiscal Adequacy in case of deficit?

    <p>The government may suspend capital expenditures</p> Signup and view all the answers

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