Renz, a resident citizen, deposited P2,000,000 in the 180-day time deposit of Banco de Baguio. The deposit pays 8% interest. Compute the final tax on maturity of the deposit.

Renz, a resident citizen, deposited P2,000,000 in the 180-day time deposit of Banco de Baguio. The deposit pays 8% interest. Compute the final tax on maturity of the deposit.

A. P6,000
B. P8,000
C. P16,000

Winnings from the PCSO are

Winnings from the PCSO are 

A. Exempt from any tax
B. Subject to regular tax
C. Subject to 20% final tax
D. Subject to both final and regular tax


Answer: A. Exempt from any tax

Which of the following is exempt feom final tax?

Which of the following is exempt feom final tax?

A. Winnings in competitions sponsored by a local trading company
B. Prizes in a body buiding competition
C. Dividends from a foreign corporation
D. Winnings from a casino


Answer: C. Dividends from a foreign corporation

What is not subject to final tax?

What is not subject to final tax?

A. Fringe benefits of rank and file employees
B. Compensation to non-rsident aliens not-engaged in trade or business
C. Fringe benefits of supervispry and managerial employees
D. Income of non-resident foreign corporations



Answer: A. Fringe benefits of rank and file employees

The tax informer's reward may be granted to

The tax informer's reward may be granted to

A. Officials of the BIR
B. Public officials or employees
C. Close relatives of public government employees
D. Relatives of government employees beyond the 6th degree of consanguinity


Answer: D. Relatives of government employees beyond the 6th degree of consanguinity

The final tax rates on passive income are generally similar to the following

The final tax rates on passive income are generally similar to the following

Select the exception


A. Domestic corporation
B. Resident alien
C. Non-resident citizen
D. Nin-resident corporation


Answer: B. Resident alien

Royalty income of a domestic corporation from abroad is

Royalty income of a domestic corporation from abroad is

A. Subject to regular tax
B. Subject to final tax
C. Subject to either final tax or regular tax
D. Not subject to Philippine income tax


Answer: A. Subject to regular tax

The winnings of a resident alien from abroad is

The winnings of a resident alien from abroad is

A. Not subject to Philippine income tax
B. Subject to regular tax
C. Subject to final tax
D. Subject to either final tax or regular tax


Answer: A. Not subject to Philippine income tax

Any royalties earned abroad by a non-resident corporation is

Any royalties earned abroad by a non-resident corporation is

A. Always subject to final tax
B. Subject to either final tax or regular tax
C. Always subject to regular tax
D. Not subject to Philippine income tax


Answer: D. Not subject to Philippine income tax

Prizes arising from sources within the Philippines may be

Prizes arising from sources within the Philippines may be

A. Subject to final tax
B. Subject to regular tax
C. Exempt from tax
D. Exempt or subject to final tax or regular tax


Answer: D. Exempt or subject to final tax or regular tax

Dividend income from domestic corporations is subject to final tax effective?

Dividend income from domestic corporations is subject to final tax effective?

A. 1997
B. 1998
C. 1999
D. 2000


Answer: B. 1998

Which of the following is exempt from final tax?

Which of the following is exempt from final tax?

A. Interest income earned by a bank from deposits in another bank
B. Interest income earned by a bank from lending activities
C. Royalties from books
D. All of these


Answer: C. Royalties from books

The following winnings are exempt from tax , except one. Which is the exception?

The following winnings are exempt from tax , except one. Which is the exception?

A. Lotto winnings
B. PCSO winngings
C. Jueteng winnings
D. All of these


Answer: C. Jueteng winnings

Prizes from sources abroad is subject to final tax

Prizes from sources abroad is subject to final tax

A. If the amount of prizes exceeds P10,000
B. If the amount of prizes does not exceed P10,000
C. If it is given to the taxpayer without effort
D. Under no circumstances


Answer: D. Under no circumstances

Which winning is exempt from final tax?

Which winning is exempt from final tax?

A.winnings exceeding P10,000
B. Winnings not exceeding P10,000
C. Winnings from illegal gambling
D. None of these


Answer: D. None of these

Which of the following is taxable?

Which of the following is taxable?

A. Prize on sports competitions sanctioned by the national sports organization
B. Nobel prize
C. Prize from dance competition abroad
D. Any prize received without effort


Answer: C. Prize from dance competition abroad

Which is not a subject to 10% final tax?

Which is not a subject to 10% final tax?

A. Royalties from a business trademark
B. Royalties from literary works
C. Dividends from a domestic corporation
D. Share in the net income of a business partnership


Answer: A. Royalties from a business trademark

Which is not subject to 20% final tax?

Which is not subject to 20% final tax?

A. Interest income from trust funds
B. P11,000 worthof prizes
C. Winnings
D. Royalties from musical compositions


Answer: D. Royalties from musical compositions

Which is covered by final tax?

Which is covered by final tax?

A. Interest income from foreign banks
B. P10,000 taxable prizes from the Philippines
C. Share in the net income of a joint venture
D. Share in the net income of a general professional partnership


Answer: C. Share in the net income of a joint venture

Between the date of declaration and the date of record, BCD, Inc. sold an investment presenting stock of ABC, Inc., a domestic corporation. Which statement is correct?

Between the date of declaration and the date of record, BCD, Inc. sold an investment presenting stock of ABC, Inc., a domestic corporation. Which statement is correct?

A. ABC, Inc. shall withhold 10% dividend tax if the buyer of the sale is corporation
B. ABC, Inc. shall withhold 10% dividend tax if the seller of the sale is an individual
C. ABC, Inc. shall withhold 10% dividend tax if the seller of the sale is corporation
D. ABC, Inc. shall withhold 10% dividend tax if the buyer of the sale is individual


Answer: D. ABC, Inc. shall withhold 10% dividend tax if the buyer of the sale is individual

Dividends declared by a resident corporation is

Dividends declared by a resident corporation is

A. Exempt from any tax
B. Subject to 10% final tax
C. Subject to regular income tax
D. Subject to 20% final tax


Answer: C. Subject to regular income tax

A dividend declaration in 2015 is subject to a final tax of

A dividend declaration in 2015 is subject to a final tax of

A. 6%
B. 8%
C. 10%
D. 20%


Answer: C. 10%

Which of the following recipients is exempt from final tax on dividends?

Which of the following recipients is exempt from final tax on dividends?

A. Resident citizen
B. Non-resident alien
C. Resident corporation
D. Resident alien


Answer: C. Resident corporation

What is the final tax on interest income on 6-year deposit pre-terminated less than 2 years before maturity?

What is the final tax on interest income on 6-year deposit pre-terminated less than 2 years before maturity?

A. 20%
B. 12%
C. 5%
D. 0%


Answer: C. 5%

The interest income from long-term peso deposits made with foreign banks is

The interest income from long-term peso deposits made with foreign banks is 

A. Subject to 20% final tax
B. Exempt from any tax
C. Subject to regular tax
D. None of these


Answer: C. Subject to regular tax

The following are subject to final tax on all income from sources within Philippines. Which is the exception?

The following are subject to final tax on all income from sources within Philippines. Which is the exception?

A. Non-resident foreign corporation
B. Non-resident alien engaged in trade or business
C. Non-resident alien not engaged in trade or business
D. None of these


Answer: B. Non-resident alien engaged in trade or business

Which of the following is subject to 7 1/2% final tax on interest from foreign currency deposits made with Philippine banks?

Which of the following is subject to 7 1/2% final tax on interest from foreign currency deposits made with Philippine banks?

A. Resident aliens
B. Non-resident corporation
C. Non-resident alien engaged in trade or business
D. Non-resident alien not engaged in trade or business


Answer: A. Resident aliens

The final tax rates on pre-termination of long-term deposits is not relevant to

The final tax rates on pre-termination of long-term deposits is not relevant to 

A. Any corporations
B. Resident citizens
C. Resident aliens
D. Non-resident citizens


Answer: A. Any corporations

Which interest income is not subject to any income tax ?

Which interest income is not subject to any income tax ?

A. Interest income from discount notes
B. Interest income from bonds issued by a bank
C. Imputed interest
D. Interest income from deposit substitute


Answer: C. Imputed interest

The tax exemption on final tax on interest from long-term deposit is not applicable to

The tax exemption on final tax on interest from long-term deposit is not applicable to

A. Corporations
B. Citizens
C. Residents
D. All of these


Answer: A. Corporations

The final tax does not apply to interest on (select the best answer)

The final tax does not apply to interest on (select the best answer)

A. Long-term deposit
B. Promissory notes
C. Deposit substitute
D. Trust funds


Answer: B. Promissory notes

Interest income from which of the following sources is subject to final income tax?

Interest income from which of the following sources is subject to final income tax?

A. Lending
B. Mortgage loans
C. Money market placements
D. Bond investments

Answer: C. Money market placements

Which statement is correct regarding final income tax?

Which statement is correct regarding final income tax?

A. Items if income subjected to final tax can still be subjected to regular tax
B. Items of income exempt under final tax are subject to regular tax
C. Final income tax applies to all passive income from Philippines sources
D. Final tax applies only on certain passive income earned within the Philippines


Answer: D. Final tax applies only on certain passive income earned within the Philippines

Which is correct with regard to final income taxation?

Which is correct with regard to final income taxation?

A. It covers all items of passive income fim whatever sources
B. It applies to all items of gross income of any non-resident earned feom sources within the Philippines
C. Taxpayers need not file an income tax return
D. It applies to passive income earned abroad


Answer: C. Taxpayers need not file an income tax return