QUIZ - Corporate Income Tax PDF

QUIZ – CORPORATE INCOME TAX Dark Desire Corporation, a MSME, reported the following gross income and expenses in 2024: Philippines Abroad Total Gross income P400,000 P300,000 P700,000 Deductions...

QUIZ – CORPORATE INCOME TAX Dark Desire Corporation, a MSME, reported the following gross income and expenses in 2024: Philippines Abroad Total Gross income P400,000 P300,000 P700,000 Deductions 200,000 150,000 350,000 Taxable Income P200,000 P150,000 P350,000 Compute the income tax due if the corporation is a/an: 1. Domestic corporation a. P100,000 c. P50,000 b. P70,000 d. P40,000 2. Resident foreign corporation a. P100,000 c. P50,000 b. P70,000 d. P40,000 3. Non-resident foreign corporation a. P175,000 c. P75,000 b. P100,000 d. P50,000 4. Private proprietary educational institution or a non-profit hospital majority of its income is from related activities. a. P105,000 c. P70,000 b. P35,000 d. P3,500 5. Non-profit entity a. P70,000 c. P35,000 b. P60,000 d. P0 6. Government-owned and controlled corporation a. P70,000 c. P35,000 b. P60,000 d. P0 7. International carrier a. P105,000 c. P17,500 b. P10,000 d. P5,000 8. Offshore banking unit a. P70,000 c. P40,000 b. P50,000 d. P20,000 9. Non-resident cinematographic film owner, distributor or lessor a. P120,000 c. P100,000 b. P87,500 d. P50,000 10. Non-resident owner or lessor of vessels a. P18,000 c. P120,000 b. P31,500 d. P15,750  11. Non-resident owner or lessor of aircraft, machineries, and other equipment a. P120,000 c. P30,000 b. P52,500 d. P26,250 12. Non-profit association, 60% of its income was derived from unrelated activities a. P70,000 c. P42,000 b. P63,000 d. P0 A large domestic bank reports the following income from its regular banking (RBU) and Foreign currency deposit unit (FCDU): RBU FCDU Interest from lending with - P300,000 FCDUs/OBUs Interest from lending to other P2,000,000 3,000,000 residents Interest from lending to non-residents 1,000,000 1,500,000 Less: business expenses 1,800,000 2,000,000 Net income P1,200,000 P2,800,000 13. Compute the total final tax. a. P500,000 c. P390,000 b. P300,000 d. P150,000 14. Compute the regular income tax. a. P750,000 c. P300,000 b. P360,000 d. P240,000 Musk, a large shipping company, reported the following gross receipts and deductions during the year: Shipments TOTAL Incoming Outgoing Gross receipts P2,000,000 P3,000,000 P5,000,000 Less: deductions 1,500,000 2,000,000 3,500,000 Net income P500,000 P1,000,000 P1,500,000 Compute the tax due assuming the corporate taxpayer is a: 15. Domestic shipping carrier a. P30,000 c. P375,000 b. P125,000 d. P450,000 16. Resident international shipping carrier a. P450,000 c. P125,000 b. P75,000 d. P30,000 A large non-profit, non-stock school has a gross income of P4,000,000, only 40% of which was contributed by related activities and total expenses of P3,000,000, 50% of which was incurred in connection with non-related activities. 17. Compute the total income tax due if the income from non-related activities is not used exclusively for educational purposes. a. P300,000 c. P100,000 b. P225,000 d. P270,000  18. Compute the total income tax assuming the taxpayer is a private school. a. P100,000 c. P300,000 b. P250,000 d. P90,000 19. Compute the income tax due if all income of the non-profit school is used for educational purposes. a. P0 c. P270,000 b. P100,000 d. P300,000 20. A private school with P80 million assets has P5,000,000 gross income in 2024. 60% of this represents tuition and miscellaneous fees. It has net income of P2,000,000, 60% of which was contributed by sources not related to academic instruction. Compute the total income tax. a. P440,000 c. P200,000 b. P360,000 d. P20,000 The LingkodBayan Corporation had the following historical MCIT and RCIT data: 2024 2025 2026 2027 MCIT P120,000 P200,000 P190,000 P170,000 RCIT P110,000 P220,000 P0 P180,000 21. Basing solely on the information provided, what is the tax due and payable respectively in 2024 and 2025? a. P120,000; P220,000 c. P120,000; P210,000 b. P120,000; P100,000 d. P110,000; P220,000 22. In the immediately preceding problem, what is the tax due and payable respectively in 2026 and 2027? a. P190,000; P0 c. P0; P0 b. P190,000; P180,000 d. P170,000; P0 A large corporate taxpayer had the following data in 2029, its 5 th year of operation: Philippines Abroad Total Sales P2,000,000 P3,000,000 P5,000,000 Less: cost of sales 1,200,000 1,800,000 3,000,000 Gross income from operation P800,000 P1,200,000 P2,000,000 Interest on deposits 50,000 250,000 300,000 Total income P850,000 P1,450,000 P2,300,000 Less: business expenses 800,000 1,300,000 2,100,000 Net income P50,000 P150,000 P200,000 23. What is the MCIT? a. P40,000 c. P35,500 b. P37,500 d. P22,500 24. What is the tax due assuming the taxpayer is a domestic corporation? a. P45,000 c. P34,500 b. P50,000 d. P22,500 25. What is the tax due if the corporation is a resident foreign corporation? a. P16,000 c. P12,000  b. P8,500 d. P12,500 A MSME corporation which started operations in 2024 had the following results of operations: 2026 2027 2028 Gross income P3,500,000 P5,000,000 P7,000,000 Less: business expense 3,400,000 5,300,000 6,400,000 Net income P100,000 (P300,000) P600,000 26. What is the income tax due in 2027? a. P0 c. P75,000 b. P60,000 d. P100,000 27. In the immediately preceding problem, what is the tax due in 2028? a. P0 c. P70,000 b. P60,000 d. P140,000 28. A resident foreign corporation branch had the following results of operations in 2024, the 5th year of its operations: Gross income from sales of goods P5,000,000 Less: allowable deductions 4,850,000 Net income P150,000 The branch intends to remit all profits after applicable taxes to the home office. What is the branch profit remittance tax? a. P0 c. P15,000 b. P7,500 d. P16,875 Calatrava Corporation had the following data in 2026: MCIT RCIT CWTs First quarter P500,000 P480,000 P150,000 Second quarter 450,000 490,000 120,000 Third quarter 500,000 520,000 140,000 Fourth quarter 700,000 480,000 160,000 There were excess MCIT of P70,000 and P130,000 respectively in 2024 and 2025. 29. What is the income tax payable in the second quarter? a. P350,000 c. P150,000 b. P240,000 d. P120,000 30. What is the income tax payable in the fourth quarter? a. P380,000 c. P600,000 b. P400,000 d. P700,000