Beruflich Dokumente
Kultur Dokumente
Answer: D
Solution:
86. Based on the preceding number, if the refundable input taxes were not refunded but
used as tax credit, the VAT due is:
a.P576,000
b.P697,888
c.P666,888
d.P570,000
Answer: D
Solution:
Output vat P720,000
Total input vat (150,000)
Vat Payable P570,000
87. But assuming further that the taxpayer opted to claim them as refund, the VAT due is:
a.P576,000
b.P697,888
c.P746,888
d.P620,000
Answer: D
Solution:
Output vat P720,000
Total input vat (100,000)
Vat Payable P620,000
88. In the case of sale of real properties on the installment plan, the real estate dealer shall
be subject to VAT on the:
a.Selling price
b.Selling price or fair market value whichever is lower
c.Selling price of fair market value whichever is higher
d.Installment payments, including interest and penalties, actually or constructively received by
the seller.
Answer: D
89. Statement 1: On a sale of real property on installment by a real estate dealer, the seller
shall be subject to VAT on the installment payment received, including interests and
penalties for late payment.
Statement 2: On sale of real property on installments by real estate dealer, where the Vat is
computed not on the consideration in the deed of sale but on the higher fair market value, the
Vat must be billed separately with a specific mention that is based on the market value of the
property
a.Both statements are correct
b.Both statements are not correct
c.Only the first statement is correct
d.Only the second statement is correct
Answer: A
90. Bahay Kubo Inc. is a real estate dealer. Details of its sales during the year showed the
following
Date of sale June 2, 2014
Consideration in the deed of sale P5,000,000
Fair market value in the assessment rolls 4,800,000
Zonal value 5,200,000
Schedule of payments
June 2, 2014 1,000,000
June 2, 2015 2,000,000
June 2,2016 2,000,000
How much is the output tax to be recognized for the June 2, 2016 payment?
a.P0
b.P24,000
c.P249,600
d.P624,000
Answer: C
Ratio of initial payment over SP = 1/5 = 20%
Type of Sale = Installment Sale
Output Vat Nov. 2016 = 2/5 x 5,200,000 x 12% = P249,600
91. Assuming that the scheduled payment on June 2, 2014 is P2,000,000, how much is the
output tax to be recognized for the June 2, 2016 payment?
a.P0
b.P24,000
c.P249,600
d.P624,000
Answer: A
Ratio of initial payment over SP = 2/5 = 40%
Type of sale = deferred sale; treated as cash sale
The entire output vat will be paid on 2014
Liability 2016 = P0
92. Masbate Farm Inc. paid royalties to Karma Italia Inc., a manufacturer of foam based in
Italy for allowing the former to use the latter’s newly developed technology in
manufacturing foam. Which of the following statements is true as to the tax consequence
of the said payment?
a.Masbate Foam Inc. will pay the the BIR 5% final withholding VAT
b.Kama Italia Inc. will pay the BIR 5% final withholding VAT
c.Masbate Foam Inc. will pay the BIR 12% creditable withholding VAT
d.Kama Italia Inc. will pay the BIR 12% creditable withholding VAT
Answer: C
94. 1st Statement – Failure of any person to register as a VAT-entity shall result to his being
temporarily closed for the duration of not less than five (5) days and shall be lifted only
upon compliance with whatever requirements prescrived by the Commissioner in the
closure order.
2nd Statement – A taxpayer may apply for VAT registration not later than ten (10) days before
the beginning of the calendar quarter and shall [ay the registration fee unless they have already
paid at the beginning of the year.
a.Both statements are correct
b.Both statements are incorrect
c.Only the first statement is correct
d.Only the second statement is correct
Answer: A
95. The term “gross receipts” for hotel and restaurant business operators shall include
I.Service charges billed separately and actually distributed to waiters and employees.
II.Actual cost of long distance and overseas telephone calls, tax, cable, telex, and charges of
the telecommunication companies collected by the establishment for the customers/clients for
the concerned telecommunication companies, such as PLDT, which are earmarked for payment
to the latter.
III.Vat passed on to customers
IV.Local taxes
V.Rooms, laundry, valet services and food/beverages consumption
VI.Handling charges for providing telephone, cables or tax services
VII.Cake shop sales, lease to concessionaires and compensation for other services
a.V and VII only
b.II, III and VII only
c.V, VI and VII only
d.All of the above
Answer: C
97. If a person who is not VAT-registered issues an invoice or receipt showing his TIN-
followed by the word “VAT”, the erroneous issuance shall result to the following, except
which one?
a.The non-VAT person shall be liable to the percentage taxes applicable to his transactions
b.The non-VAT person shall be liable to the VAT due on the transactions.
c.The non-VAT person shall have the benefit of input tax credit.
d.The non-VAT person shall be liable to a 50% surcharge under Sec. 248 (B) of the Tax Code.
Answer: C
99. What institution is required to deduct and withhold a final VAT of 5% on the purchase of
goods or services subject to VAT?
a.National government or any political subdivision thereof
b.Government-owned or controlled corporations
c.Both (a) and (b)
d.Neither (a) nor (b)
Answer: C
100. The withholding agent of creditable value added tax is required to remit the
amount of value added tax withheld within
e.25 days following the end of month the withholding was made
f.20 days following the end of month the withholding was made
g.15 days following the end of month the withholding was made
h.10 days following the end of month the withholding was made
Answer: D
101. A VAT-registered supplier sold goods amounting to P500,000 to a government-
controlled corporation during a particular quarter. Which of the following statements is
incorrect in relation to the sale in relation to the sale of goods?
a.The sale is subject to final withholding VAT.
b.The government-controlled corporation will withhold P25,000 withholding VAT.
c.The government-controlled corporation shall remit the withholding of VAT to the BIR within 10
days following the end of the month the withholding was made.
d.The VAT-registered supplier may refuse the withholding of VAT as long as it is willing to pay
the full 12% VAT.
Answer: D
102. Statement 1: Other percentage taxes are indirect taxes that can be passed on by
person required to pay to another person who shall bear the burden of paying the
tax.
Statement 2: Persons and transactions that are subject to the other percentage taxes
are no longer subject to the value-added tax but may be subject to excise tax.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statement are correct
d. Both statement are incorrect
e.
103. Which statement is wrong?
a. Percentage taxes are basically on sales of services
b. Percentage taxes are paid quarterly
c. Percentage taxes are not allowed by law to be shifted to the customers or clients
d. An isolated transaction not in the course of business will not result in a liability for
a percentage tax
Answer: C
104. A seller of agricultural food products is vat-exempt. His annual gross sales in
2018 amounted to P 3,000,000. To what business tax is he liable?
a. 3% tax on vat-exempt persons
b. 12% value-added tax
c. 3% common carrier’s tax
d. None of the above
Answer: D
105. Which of the following is subject to 3% percentage tax under Section 116 of the
Tax Code?
a. Fruit dealer whose gross receipts for 2018 amounted to P 2,800,000 only.
b. An individual taxpayer whose gross sales for the year amounted to P 100,000.
c. School bus operator whose gross receipts for 2018 amounted to P 2,500,000.
d. None of the above
Answer: D
106. The taxpayer is a trader of poultry feeds. Determine his applicable business tax.
a. Subject to 12% vat
b. Vat exempt but subject to 3% OPT under Section 116
c. 12% vat or 3% OPT, at his option
d. Exempt from 12% vat and OPT
Answer: D
107. Ana has the following data for 2018 the taxable year:
Gross sales P2,850,000
Collections 1,420,000
If Ms. Ana is a seller of goods, her business tax for the year should be
a. P42, 600 OPT c. P170,400 vat
b. P85, 500 OPT d. P342,000 vat
Answer: B
● OPT= P2,850,000 x 3% = P85,500
● The basis of business for sale of goods is gross sales
108. If Ms. Ana is a seller of service, her business tax for the year should be
a. P42,600 OPT c. P170,400 vat
b. P85,500 OPT d. P342,000 vat
Answer: A
● OPT= P1,420,000 x 3% = P42,600
● The basis of business tax for sale of service is gross receipts or collection.
109. If Ana is vat registered
a. She is subject to 12% vat
b. She is subject to OPT under Section 116
c. She is subject to 12% vat or 3% OPT, at her opinion
d. She is exempt from OPT under Section 116 if she opted to be taxed at 8%
Answer: A
● The 8% optional tax is not applicable to vat registered taxpayers.
110. If Ana is a taxi operator
a. She is subject to 12% vat
b. She is subject to common carrier’s tax under Section 117
c. She is subject to 12% vat or 3% common carrier’s tax, at her option
d. She is exempt from OPT if is she opted to be taxed at 8%
Answer: B
● The 8% optional tax is not applicable to taxpayers who are subject to OPT
other than Section 116 of the Tax Code, as amended.
118. A domestic carrier by sea is engaged in the transport of passengers, goods and
cargoes. It is not VAT-registered and its annual gross receipts do not exceed
P3,000,000 during 2018. To what business taxed is it liable?
a. 12% value-added tax
b. 3% OPT under Section 116
c. 3% common carrier’s tax under Section 117
d. Not subject to business tax
Answer: B
119. Assume the annual gross receipts in the preceding number exceeded the revised
vat threshold of P3,000,000 during 2018. To what business taxes is it liable?
a. 12% value-added tax
b. 3% OPT under Section 116
c. 3% common carrier’s tax under Section 117
d. Not subject to business tax
Answer: A
120. A domestic carrier by land is engaged in the transport of passengers. It is not
VAT-registered and its annual gross receipts do not exceed P3,000,000 during 2018. To
what business taxes is it liable?
a. 12% value-added tax
b. 3% OPT under Section 116
c. 3% common carrier’s tax under Section 117
d. Not subject to business tax
Answer: C
121. Assume the annual gross receipts in the preceding number exceeded the revised
vat threshold of P3,000,000 during 2018. To what business taxes is it liable?
a. 12% value-added tax
b. 3% OPT under Section 116
c. 3% common carrier’s tax under Section 117
d. Not subject to business tax
Answer: C
125. Isarog is a vat registered common carrier with passenger buses and cargo
trucks. For the month of June 2018, it had the following data of revenues and receipts,
taxes not included:
● For transporting passengers, gross revenues and receipts of P330,000
● For transporting cargoes, gross revenues of P220,000, of which P200,000 was
received.
● For renting out to the MMDA its towing trucks, gross receipts of P50,000, the
presenting P10,000 from gross revenue of the quarter ending March 31 and
P40,000 for the month of June
The percentage tax is:
a. P1,500 c. P15,900
b. P9,900 d. P17,400
Answer: B
● Common Carrier’s Tax under Section 117 = P330,000 x 3% = P9,900
● The basis of business tax is from sale or service is selections or receipts,
regardless of when the it was earned.
126. The value added tax is:
a. P24,000 c. P28,800
b. P30,000 d. P25,000
Answer: B
● 12% Vat = (P200,000 + 50,000) x 12% = P30,000
127. _________ is a pool of land transportation vehicles whose accessibility to the
riding public is facilitated through the use of common point of contact which may be in
the form of text, telephone and/or cellular calls, email, mobile application or by other
means.
a. Domestic common carriers
b. International carriers
c. Transportation network vehicle services (TNVS)
d. Partners
Answer: C
128. The owner(s) of the vehicles, other than the TNVS, used in transporting
passengers and/or goods in TNVS, shall be referred herein as_______.
a. Domestic common carriers
b. International carriers
c. Transportation network vehicle services (TNVS)
d. Partners
Answer: D
129. Statement 1: Under RMC 70-2015, transport network vehicle services, such as
but not limited to the likes of UBER , GRAB TAXI, the Partners/suppliers and similar
arrangements , which are holders of a valid and current Certificate of Public
Convenience for the transport of passengers by land, shall be subject to 3% common
carriers tax under Sec. 117.
Statement 2: Transport network vehicle services, such as but not limited to the likes of
UBER, GRAB TAXI, their. Partners/suppliers and similar arrangements, which are not
holders of a valid and current Certificate of Public Convenience for the transport of
passengers by land, shall also be subject to 3% common carriers tax under Sec. 117
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
Answer: B
130. The 3% tax on international carrier is imposed upon:
International air carrier International shipping
Doing business in the Philippines doing business in the Philippines
a. Yes Yes
b. No No
c. Yes No
d. No Yes
Answer: A
131. Statement 1: Domestic common carriers are subject to 0% on its flight originating
from abroad to the Philippines.
Statement 2: Residential international carriers are subject to the 0% VAT on its gross
Philippine billings on flight originating from the Philippines to a foreign destination.
Statement 1 Statement 2
a. True True
b. True False
c. False False
d. False True
Answer: C
132. Determine the carrier that is subject to the Percentage Tax:
a. Resident foreign corporation operating as an international shipping carrier
b. Non-resident foreign corporation operating as an international carrier
c. Domestic corporation with international flghts
d. Domestic corporation with international voyages
Answer: A
133. Statement 1: International air carriers and international shipping carriers shall not
be subject to 12% value added tax but to 3% common carrier’s tax based on gross
receipts derived from their transport of passengers and goods from the Philippines to
other countries.
Statement 2: In cases when the Gross Philippines Billing Tax of 2.5% for international
carriers is not applicable (i.e., tax exempt based on reciprocity or treaty), the common
carrier’s tax under Section 118 of the NIRC, as amended, shall still apply.
A B C D____
Statement 1 True True False False
Statement 2 True False True False
Answer: C
● Statement 1: Gross receipts from transport operations shall be excluded.
138. If the franchisee is generating and selling electricity, the correct amount of
business tax is:
a. P200,800
b. P456,000
c. P580,800
d. P238,800
Answer: C
Solution:
Covered by the franchise:
Revenues P4,000,000
Add: AR, beg. 600,000
Less: AR, end (800,000)
=Collections P3,800,000
Not covered by the franchise:
Revenues P1,200,000
Add: AR, beg.
Less: AR, end (160,000)
=Collections P1,040,000
Total collections P4,840,000
X Vat Rate 12%
Value Added Tax P580,800
Sale of electricity is subject to vat instead of franchise tax under Section 119 of the Tax Code.
139. If the franchise is a gas and water utilities, the correct amount of business tax is:
a. P200,800
b. P456,000
c. P580,800
d. P238,800
Answer: A
Solution:
Covered by the franchise:
Revenues P4,000,000
Add: AR, beg. 600,000
Less: AR, end (800,000)
=Collections P3,800,000
X Franchise Tax Rate 2% P76,000
Not covered by the franchise:
Revenues P1,200,000
Add: AR, beg.
Less: AR, end (160,000)
=Collections P1,040,000
X Vat Rate 12% 124,000
Total Business Tax P200,800
● The gross receipts from those covered by the franchise is subject to the applicable
franchise tax rate, regardless of the amount of the gross receipts.
● The gross receipts not covered by the franchise is subject to vat because the gross
receipts for the taxable year will obviously exceed the vat threshold.
140. If the franchise is a radio television broadcasting company, the correct amount of
the business tax is:
a. P200,800
b. P456,000
c. P580,800
d. P238,800
Answer: D
Covered by the franchise:
Revenues P4,000,000
Add: AR, beg. 600,000
Less: AR, end (800,000)
=Collections P3,800,000
X Franchise Tax Rate 3% P114,000
149. Piggy Bank has the following data for the month of January 2018:
Interest income, the remaining maturity of the instrument is 5 years P100,000
Rentals (gross of 5% expanded withholding tax) 50,000
Net trading loss (10,000)
How much is the gross receipts tax on the collections of Piggy for January 2018?
a. P5,000
b. P3,500
c. P7,800
d. P8,500
Answer: D
Interest income – from short term loan = P100,000 x 5% P5,000
Rental income 3,500
Gross receipts tax P8,500
150. Statement 1: The tax on insurance premiums applies to every person, company
or corporation doing life insurance business of any sort in the Philippines, except purely
cooperatives companies and associations.
Statement 2: A person engaged in non-life insurance business is subject to value-added
tax.
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is incorrect
Answer: A
151. Statement 1: The tax on life insurance premiums Is 2% based upon the total
premiums collected whether such premiums are paid in money, notes, credits, or any
substitute for money.
Statement 2: The tax on agents of foreign insurance companies is 4% based upon the
total premiums collected.
a. Both statements are correct
b. Both statements are incorrect
c. Only first statement is correct
d. Only second statement is incorrect
Answer: A
153. Section 124 of the Tax Code, as amended, provides that every fire, marine or
miscellaneous insurance agent authorized under the Insurance Code to procure policies
of insurance as he may have previously been legally authorized to transact business in
the Philippines shall pay a tax equal to:
a. 2%
b. 4%
c. 5%
d. 10%
Answer: A
● The tax rate, as provided in the Tax Code, is twice of Section 123.
154. A domestic insurance company gave the following information for the month:
Gross receipts from its insurance policies
Premium on life insurance P2,100,000
Premium on non-life insurance 1,500,000
Gross receipts as agent of a non-resident foreign insurance co.
Premium on non-life insurance P4,000,000
Premium on property insurance 1,000,000
The percentage tax due for the month is:
a. PP355,000
b. P430,000
c. P242,000
d. P605,000
Answer: C
Solution:
Gross receipts from its insurance policies
Premium on life insurance (P2,100,000 x 2%) P42,000
Gross receipts as agent of a non-resident foreign insurance company
Premium on non-life insurance (P4,000,000 x 4%) 160,000
Premium on property insurance (P1,000,000 x 4%) 40,000
Percentage Tax for the month P242,000
155. Pedro wants to procure fire insurance for his Mansion in Forbes Park, Makati
from Gallaxy Insurance Company, a non-resident foreign corporation, through its agent
in the Philippines, G.I. Joe. He paid premiums in 2018 amounting to P500,000. How
much is the premiums tax payable on the transaction?
a. P10,000
b. P20,000
c. P25,000
d. P50,000
Answer: B
● Premium Tax on Agents of Foreign Insurance Co. = P500,000 x 4% =
P20,000
156. Using the same information above, but assuming Pedro directly obtained the
insurance policy from Gallaxy Insurance Company; how much is the premiums tax
payable on the transaction?
a. P10,000
b. P20,000
c. P25,000
d. P50,000
Answer: C
● Premiums Tax = P500,000 x 5% = P25,000
157. A tax on the right or privilege to enter places of amusement
a. Value added tax
b. Franchise tax
c. Amusement tax
d. Income tax
Answer: C
158. The operator of one of the following places is not subject to amusement tax.
a. Cockpits
b. Racetracks
c. Bowling alleys
d. KTV Karaoke joints
Answer: C
● Bowling alleys are subject to vat, not amusement tax.
159. One of the following is a correct amusement tax rate:
a. 30% on jai-alai and racetracks
b. 15% on cockpits, cabarets, night and day clubs
c. 18% on boxing exhibitions
d. 10% on professional basketball games
Answer: A
● Cockpits,cabarets, night and day clubs shall be 18%
● Boxing exhibitions shall be 10%
● Professional basketball games shall be 15%
160. One of the following is an incorrect amusement tax rate:
a. Jai-alai and racetracks – 30%
b. Cockpits, cabarets, night and day clubs – 18%
c. Professional basketball games – 15%
d. Boxing exhibitions – 12%
Answer: D
161. One of the following is subject to amusement tax on gross receipts
a. Owners of winning racehorses
b. Proprietors of karaoke KTV houses
c. Owners of winning cocks in the cockpits
d. Lessees of bowling alleys
Answer: B
● Owners of winning racehorses are subject to percentage tax on winnings
under Section 126 of the Tax Code, not amusement tax.
● Owners of winning cocks in the cockpits are subject to income tax only
● “D” is subject to vat
162. Gross receipts for amusement tax shall include all the following except one.
Which one is it?
a. Income from television, radio and motion picture rights
b. Income from sale of tickets
c. Income from sale of food and refreshments within the amusement place
d. Income from sale of food and refreshments outside the amusement place
Answer: D
163. Statement 1: All boxing exhibitions held in the Philippines shall be subject to
amusement tax.
Statement 2: Admission charges to amusement places are required for the imposition of
amusement tax.
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct
Answer: B
164. Apol B., a Filipino citizen, promoted a world boxing championship bout in the
Philippine Arena in Bocaue, Bulacan featuring Manny Pacquiao, a Filipino champion,
and Lucas Matthysse, dubbed as “Fight of Champions”. Gate receipts amounted to
P30,000,000 and additional receipts from television coverage was P20,000,000. The
amusement tax due is:
a. P2,000,000
b. P3,000,000
c. P5,000,000
d. Nil
Answer: D
165. Assuming the bout above will be held in Malaysia, how much is the amusement
tax?
a. P2,000,000
b. P3,000,000
c. P5,000,000
d. Nil
Answer: D
166. Assuming the bout is in the Philippines but the promoter, Apol B., is a foreign
national, how much is the amusement tax?
a. P2,000,000
b. P3,000,000
c. P5,000,000
d. Nil
Answer: C
● Amusement Tax = (P30M + P20M) x 10% = P5M
167. Boxing exhibitions shall be exempt from amusement tax when the following
conditions are present:
a. Involves World or Oriental championships in any division.
b. One of the contenders is a citizen of the Philippines.
c. Promoted by citizens of the Philippines or by a, corporation or association at least 60%
of the capital is owned by Filipino citizens.
d. All of the conditions above must be satisfied
Answer: D
168. The Percentage Tax on Winnings is imposed on the winnings of bettors in:
a. Cockfighting
b. Horse race
c. Jai-alai
d. Boxing
Answer: B
169. The following shall always be subject to 10% percentage tax, except?
a. Overseas call made by Mr. X, resident of Manila, to his mother in Libya
b. Winning from horse races by a bettor
c. Oriental Championship match in the Philippines between a Filipino and Mexican
promoted by Bob Arum
d. Winnings from horse races by a horse owner
Answer: D
● A bettor of horse races may be subject to 10% or 4% tax based on net
winnings.
● Basis: Net winnings = Gross winnings or dividends less cost of the
winning ticket (s)
● % of Tax:
Ordinary winnings: 10%
Special winnings (forecast, double, trifecta, quinela): 4%
● Horse owner (s) are subject to 10% tax based on gross winnings.
170. Statement 1: The 10% tax on winnings is based on actual amount paid to the
winner.
Statement 2: The rate of tax on winnings in case of double, forecast/quinella
and trifecta shall be four percent (4%).
a. Both the statements are correct
b. Both the statements are incorrect
c. Only the first statement is correct
d. Only the second statement is incorrect
Answer: D
171. Mike Ong receivedP100,000 winnings from cockfighting. Determine his tax
liability.
I.Subject to 10% OPT(tax on winnings) under Section 126 of the Tax Code
II.Subject to income tax
III.Subject to 10% OPT (tax on winnings) under Section 126 of the Tax Code and 20% final tax on
passive income.
a. I only
b. II only
c. III only
d. I and III
Answer: B
172. Mannu Gal received P100,000 winnings from horseracing. Determine his tax
liability.
I.Subject to 10% OPT (tax on winnings) under Section 126 of the Tax Code
II.Subject to basic income tax
III.Subject to 10% OPT ( tax on winnings) under Section 126 of the Tax Code and 20% final tax on
passive income
a. I only
b. II only
c. III only
d. I and II
Answer: A
Solution:
● ON DOUBLE
=P200 bet/P20 per bet = 10 tickets
=Net winnings per ticket = P200-20 = P180
OPT = P180 x 10 tickets x 4% = P72
● On Winner Take All (Ordinary winnings)
=P500 bet/P50 per bet = 10 tickets
=Net winnings per ticket = P1,000-50 = P950
OPT = P950 x 10 tickets x 10% = P950
● ON FORECAST
=P1,000 bet/P20 per bet = 50 tickets
=Net winnings per ticket = P100-20 = P80
OPT = P80 x 50 tickets x 4% = P160
● TOTAL Tax on Winnings
=P72+P950+P160 = P1,182
174. Issuance of shares by a closely held issuing corporation shall be subject to:
a. Percentage tax -1/2 of 1% based on gross selling price or gross value in money
b. Capital gains tax – 5% on first P10,000 capital gain; 10% on excess of P100,000
c. Percentage on IPO – 4%,2%,1% based on gross selling price or gross value in money
d. No business tax but subject to documentary stamp tax (DST)
Answer: D
175. Primary offering of shares by the issuing corporation (issuance during initial
public offering) shall be subject to:
a. Percentage tax – ½ of 1% based on gross selling price or gross value in money.
b. Capital gains tax – 5% on first P10,000 capital gain; 10% on excess of P100,000.
c. Percentage on IPO – 4%, 2%,, 1% based on gross selling price or gross value in money.
d. No business tax but subject to documentary stamp tax (DST)
Answer: D
177. Shares of stock held as investment when sold directly to a buyer prior to January
1,2018 shall be subject to:
a. Percentage tax – ½ of 1% based on gross selling price or gross value in money.
b. Value- added tax – 10% based on gross income.
c. Capital gains tax – 5% on first P10,000 capital gain; 10% on excess of P100,000.
d. Percentage on IPO – 4%, 2%,, 1% based on gross selling price or gross value in money.
Answer: C
179. Secondary offering of stock held as investment when sold during IPO period shall
be subject to:
a. Percentage tax – ½ of 1% based on gross selling price or gross value in money.
b. Value-added tax – 10% based on gross income.
c. Capital gains tax – 5% on first P10,000 capital gain; 10% on excess of P100,000.
d. Percentage on IPO – 4%, 2%,, 1% based on gross selling price or gross value in money.
Answer: D
180. Shares of stock held as investment when sold through the total stock exchange
prior to January 1, 2018 shall be subject to:
a. Percentage tax – ½ of 1% based on gross selling price or gross value in money.
b. Value-added tax – 10% based on gross income.
c. Capital gains tax – 5% on first P10,000 capital gain; 10% on excess of P100,000.
d. Percentage on IPO – 4%, 2%,, 1% based on gross selling price or gross value in money.
Answer:A
183. 1st Statement: Sale by a stock dealer of shares of stocks through the local stock
exchange is subject to the stock transaction tax.
2nd Statement: Sale by a stock dealer of shares of stocks directly to a buyer is
subject to the capital gains tax.
a. Both statements are correct.
b. Both statements are incorrect.
c. Only the first statement is correct.
d. Only the second statement is incorrect
Answer: B
● Sale of shares by a stock dealer is subject to basic income tax and vat.
184. All of the following except one are liable to ½ of 1% stock transaction tax. Which
one is not?
a. Individual taxpayers, whether citizens or alien
b. Corporate taxpayers, whether domestic or foreign
c. Estates and Trust
d. Dealers in securities
Answer: D
185. Gallaxy Corporation issued 10,000 shares, with par value of P100 per share, to
Mr. Apolinario Bobadilla for P150 per share. The transaction did not pass through the
Philippine Stock Exchange. How much is the capital gains tax on the sale?
a. P45,000
b. P25,000
c. P50,000
d. Zero
Answer: D
●
CGT is applicable only if the seller is a shareholder or investor, not issuer
●
The transaction is not subject to aany business tax except DST
186. Using the data in the preceding number, how much is the percentage tax
assuming Mr. Bobadilla subsequently sold his shares for P200 per share?
a. P45,000
b. P25,000
c. P10,000
d. Zero
Answer: D
● The sale will be subjected to capital gains tax (an income tax) but not
subject to percentage tax
187. Statement 1: The buyer of shares under primary offering shall be the one liable
for the payment of stock transaction tax to be withheld and remitted by the stock broker.
Statement 2: The seller shall be the one liable for the stock transaction tax of
shares sold under secondary offering offering.
A B C D
Statement 1 True True False False
Statement 2 True False True False
Answer: C
188. Which of the following percentage taxes is paid on a quarterly basis prior to
effectivity of the TRAIN Law?
I.Tax on overseas dispatch, message, or conversation originating from the Philippines
II.Amusement taxes
III.Stock transactions tax
IV.Percentage tax on international carriers
a. I and II only
b. III and IV only
c. I, II and IV ONLY
d. I, II, III and IV
Answer: A
189. Assume the taxable year is 2018, which of the percentage taxes in the preceding
number is paid on a quarterly basis?
a. I and II only
b. III and IV only
c. I, II, and IV only
d. I, II, III and IV
Answer: C
190. Statement 1: Prior to the effectivity of the TRAIN Law, payment of stock
transaction tax of ½ of 1% is within (5) banking days from the date withheld by the
broker.
Statement 2: Payment of stock transaction tax of 4%, 2%,, 1% on primary
offering should be within thirty (30) days from the date of listing in the local stock
exchange.
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct
Answer: A
191. Statement 1: Upon the effectivity of the TRAIN Law, payment of stock transaction
tax of 6/10 of 1% is within five (5) banking days from the date withheld by the broker.
Statement 2: Payment of stock transaction tax of 4%, 2%,, and 1% on primary
offering should be within thirty (30) days from the date of listing in the local stock
exchange.
a. Both statements are correct
b. Both statements are incorrect
c. Only the first statement is correct
d. Only the second statement is correct
Answer: A
192. Prior to 2018, the following percentage taxes are paid on a monthly basis,
except?
I.Franchise tax
II.Tax on winnings
III.Percentage tax on international carriers
IV.Overseas communication’s tax
V.Percentage tax on banks and nonbank financial intermediaries
a. I and II only
b. II and IV only
c. I, II and III only
d. All of the above
Answer: B
193. Assume the taxable year is 2018, which of the percentage taxes in the preceding
number is paid on a quarterly basis?
a. I and II only
b. II and IV only
c. I, II and III only
d. All of the above
Answer: D