Source(s) of taxable income exam questions and answers
2023 with complete solution
Is is important to know the source for income tax purposes (i.e. from within and without
the Philippines) because:
I. Some individuals and corporate taxpayers are taxable based on their worldwide
income while others are taxable only on their income from sources within the
Philippines.
II. The Philippines imposes income taxes only on income from sources within.
III. Some individual taxpayers are citizens while others are aliens.
IV. Export sales are not subject to income tax.
I
Which of the following is true?
I. A citizen of the Philippines residing therein is taxable on all income derived from
sources within and without the Philippines.
II. A non-resident citizen is taxable on income derived from sources within the
Philippines only.
III. An alien individual, whether a resident or not of the Philippines, is taxable on income
derived from sources within the Philippines only.
IV. A seaman who is a citizen of the Philippines and who receives compensation for
services rendered abroad as a member of the complement of a vessel engage in
international trade shall be treated as an overseas contract worker.
All are correct
Taxable only on income from sources within the Philippines, except
I. Nonresident citizen
II. Resident citizen
III. Resident alien
IV. Nonresident alien
II
Situs of taxation is world/ global taxation
I. Nonresident alien engaged in trade
II. Resident alien
III. Resident citizen
III
Who of the following individual taxpayers is taxable on income derived from within and
without the Philippines
I. Pedro, a native of Bacolod City, working as overseas contract worker in Iraq
II. Lee Min Ho, Korean singer, held a 3-day concert in Manila
III. Pao Gasul, Spanish citizen, a resident of Madrid, Spain, spent a one (one) week
vacation in Boracay
IV. George, naturalized Filipino citizen and married to a Filipina. He had been living in
Pampanga since 1990
IV
Pedro Dela Cruz, nonresident citizen, arrived in the Philippines on July 1, 2018 to reside
here permanently after working as a nurse in the United States for many years. Which
, of the following statements is correct with respect to his classification for income tax
purpose?
I. He shall be classified as nonresident citizen for the year 2018 with respect to his
income derived from sources abroad from January 1, 2018 until the date of his arrival in
the Philippines.
II. He shall be classified as nonresident citizen for the whole year of 2018
III. He shall be classified as resident citizen for the whole year 2018.
IV. He shall be classified as neither resident nor nonresident citizen for the year 2018
I
Individual taxpayers are subject to the following income tax:
I. Basic tax based on graduated tax table
II. Final withholding tax on passive income derived from sources within the Philippines
III Capital gains tax
IV. Stock transaction tax of 6/10 of 1% of gross selling price
I, II and III
LJ, married, left the Philippines in the middle of the year on July 1, 2018 to go abroad
and work there for five (5) years. The following data were provided as of December 31,
2018
For Jan 1 to June 30, the gross business income for Phls and abroad were 300000 and
200000, respectively, and the business expenses were 100000 and 50000 for Phls and
abroad, respectively.
For July 1 to Dec 31 the gross business income for Phls and abroad were 600000 and
400000, respectively, and the business expenses were 150000 and 50000 for Phls and
abroad, respectively.
His taxable income is?
I. 800000
II. 950000
III. 1100000
IV. 600000
I
LJ, married, arrived from abroad on July 1, 2018 to permanently resettle in the
Philippines, after working abroad for 5 years,
The following data were provided as of December 31, 2018
For Jan 1 to June 30, the gross business income for Phls and abroad were 300000 and
200000, respectively, and the business expenses were 100000 and 50000 for Phls and
abroad, respectively.
For July 1 to Dec 31 the gross business income for Phls and abroad were 600000 and
400000, respectively, and the business expenses were 150000 and 50000 for Phls and
abroad, respectively.
his taxable income as of December 31, 2018 is;
I. 750000
II. 1000000
III. 1100000
IV. 600000
II
2023 with complete solution
Is is important to know the source for income tax purposes (i.e. from within and without
the Philippines) because:
I. Some individuals and corporate taxpayers are taxable based on their worldwide
income while others are taxable only on their income from sources within the
Philippines.
II. The Philippines imposes income taxes only on income from sources within.
III. Some individual taxpayers are citizens while others are aliens.
IV. Export sales are not subject to income tax.
I
Which of the following is true?
I. A citizen of the Philippines residing therein is taxable on all income derived from
sources within and without the Philippines.
II. A non-resident citizen is taxable on income derived from sources within the
Philippines only.
III. An alien individual, whether a resident or not of the Philippines, is taxable on income
derived from sources within the Philippines only.
IV. A seaman who is a citizen of the Philippines and who receives compensation for
services rendered abroad as a member of the complement of a vessel engage in
international trade shall be treated as an overseas contract worker.
All are correct
Taxable only on income from sources within the Philippines, except
I. Nonresident citizen
II. Resident citizen
III. Resident alien
IV. Nonresident alien
II
Situs of taxation is world/ global taxation
I. Nonresident alien engaged in trade
II. Resident alien
III. Resident citizen
III
Who of the following individual taxpayers is taxable on income derived from within and
without the Philippines
I. Pedro, a native of Bacolod City, working as overseas contract worker in Iraq
II. Lee Min Ho, Korean singer, held a 3-day concert in Manila
III. Pao Gasul, Spanish citizen, a resident of Madrid, Spain, spent a one (one) week
vacation in Boracay
IV. George, naturalized Filipino citizen and married to a Filipina. He had been living in
Pampanga since 1990
IV
Pedro Dela Cruz, nonresident citizen, arrived in the Philippines on July 1, 2018 to reside
here permanently after working as a nurse in the United States for many years. Which
, of the following statements is correct with respect to his classification for income tax
purpose?
I. He shall be classified as nonresident citizen for the year 2018 with respect to his
income derived from sources abroad from January 1, 2018 until the date of his arrival in
the Philippines.
II. He shall be classified as nonresident citizen for the whole year of 2018
III. He shall be classified as resident citizen for the whole year 2018.
IV. He shall be classified as neither resident nor nonresident citizen for the year 2018
I
Individual taxpayers are subject to the following income tax:
I. Basic tax based on graduated tax table
II. Final withholding tax on passive income derived from sources within the Philippines
III Capital gains tax
IV. Stock transaction tax of 6/10 of 1% of gross selling price
I, II and III
LJ, married, left the Philippines in the middle of the year on July 1, 2018 to go abroad
and work there for five (5) years. The following data were provided as of December 31,
2018
For Jan 1 to June 30, the gross business income for Phls and abroad were 300000 and
200000, respectively, and the business expenses were 100000 and 50000 for Phls and
abroad, respectively.
For July 1 to Dec 31 the gross business income for Phls and abroad were 600000 and
400000, respectively, and the business expenses were 150000 and 50000 for Phls and
abroad, respectively.
His taxable income is?
I. 800000
II. 950000
III. 1100000
IV. 600000
I
LJ, married, arrived from abroad on July 1, 2018 to permanently resettle in the
Philippines, after working abroad for 5 years,
The following data were provided as of December 31, 2018
For Jan 1 to June 30, the gross business income for Phls and abroad were 300000 and
200000, respectively, and the business expenses were 100000 and 50000 for Phls and
abroad, respectively.
For July 1 to Dec 31 the gross business income for Phls and abroad were 600000 and
400000, respectively, and the business expenses were 150000 and 50000 for Phls and
abroad, respectively.
his taxable income as of December 31, 2018 is;
I. 750000
II. 1000000
III. 1100000
IV. 600000
II
