NAME: ____Mervidelle F.

Castro_______________________________________ DATE/SCORE: OCTOBER 17, 2020/ _____/90 QUIZ – TAX

ON CORPORATION
Direction: Read and solve the following problems below. Write your answers on the space provided after each letter. Provide your
solutions. 1. Dynasty Corporation just completed its third year of operations. It has the following financial information for the taxable year
2018, its third year:
Philippines China
Gross income P1,250,000 P800,000
Deductions 945,000 540,000

a. Assuming that the taxpayer is a domestic corporation, what is the taxable income? _565,000____.
b. What is the tax due? ___169,500_______.
c. Assuming that the taxpayer is a resident foreign corporation, what is the taxable income? __305,000_______.
d. What is the tax due? __91,500_______________.
e. Assume that the taxpayer is a non-resident foreign corporation, what is the taxable income? __1,250,000_____.
f. What is the tax due? ___375,000_______.
2. The following were computed income taxes (MCIT for minimum corporate income tax and NIT for normal income tax) of a domestic
corporation:

MCIT NIT
Seventh year P70,000 P20,000
Eight year 10,000 30,000
Ninth year 40,000 15,000
Tenth year 2,000 5,000
Eleventh year 45,000 80,000
(Disregard considerations of quarterly income tax payments). Compute the income tax for:
a. Seventh year? ____70,000____________________
b. Eight year? ______30,000______________
c. Ninth year? ______40,000______________
d. Tenth year? ______5,000______________
e. Eleventh year? ___80,000_______________
3. A domestic corporation, in its fourth year of operations, had the following data on transactions in each of the four quarters of a taxable
year:
First Second Third Fourth
Gross profit from sales P500,000 P350,000 P800,000 P900,000 Dividend income from a domestic corporation
20,000 20,000
Interest on bank deposit 4,000 8,000 12,000 Operating expenses 450,000 340,000 810,000 450,000

Income tax due (refundable or creditable) at the end of:

a. First quarter? _____15,000_____________
b. Second quarter? ___3,000______________
c. Third quarter? ______(3,000)_____________
d. Year? ___________129,000____________
4. A foreign corporation, authorized to do business in the Philippines by Philippine regulatory agencies, had the following data from
operations in 2018:
Gross income, Philippines P30,000,000
Gross income, Foreign 90,000,000
Business expenses, Philippines 10,000,000
Business expenses, Foreign 40,000,000

Out of the Philippine income, there was an actual remittance abroad of P8,500,000.
Philippine income tax on income from operations? ____6,000,000_____________.
Profit remittance tax paid? ____1,275,000__________________________________________.

5. The following nonresident foreign corporations operate in the Philippines with their respective income and expenses:
A. Butterfly Film, cinematographic film distributor:
Within Without
Gross receipts P10,000,000 P200,000,000
Cost of film distributed 6,000,000 120,000,000
Operating expenses 3,000,000 50,000,000

B. China Aircraft, a lessor of airplanes to Philippine Airlines:

Within Without
Gross receipts P20,000,000 P100,000,000
Operating expenses 15,000,000 80,000,000

What is the amount of Philippine income taxes to be paid by?

a. Butterfly Film _250,000________
b. China Aircraft __375,000_________________
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