Professional Documents
Culture Documents
A i . A, a French citizen permanently residing in the Philippines, received several items during the taxable
year. Which among the following is NOT subject to Philippine income taxation?
a. Consultancy fees received for designing a computer program and installing the same in the
Shanghai facility of a Chinese firm
b. Interest from his deposits in aclocai bank ! of foreign currency earned abroad converted to
Philippine pesos.
co Dividends received from an American corporation which derive(6O% of its annual gross receipts
from the Pthji1ioine sources for the pastl yeath.
d Gains derived froñi the aIe of his condominium unit located in The Fort, Taguig City to another
resident alien.
\ 2. A, a Frenchman, arrived in the Philippines on January 1, 2014 and continued to live and engage in
business in the Philippines. He went on a tour of Southeast Asia from August 1 to November 5,
2014. Hereturned to the Philippines on November 6, 2014 and stayed until April 15, 2015 when he
(returned to France He earned during his stay in the Philippines a gross income of P3 million from his
investments in the country. For the year 2014, Pierre's taxable status is that of
a. A non-resident alien not engaged in trade or business in the Philippines.
b. A non-resident alien engaged in trade or business in the Philippines.,
C. A resident alien not engaged in trade or business in the Philippines. ( . .
& A resident alien engaged in trade or business in the Philippines. '<
' 3. A and B were legally separated. They had six minor children, all qualified to be claimed as additional
exemptions for income tax purposes The court awardedustod of two of the children to A and the
three to B, with A directed to provide full financial support1Them awel1. The court awarded the rth
child to A.'s father with A also providing full financial support. Assuming that only A is gainfully
employed while B is not, for how many children could A claim additional exemptions when he files
his income tax return ? . .
a. Six children
b. Five children "
C. Three children
d. Two children
' 4. Which of the following is not. correct? A nonresident citizenmeans, a citizen of the Philippines
a. Who establish to the satisfaction of the CIR the fact of his physical presence abroad with a
0
definite intention to reside therein
b. Who leaves the Philippines during the taxable year to reside abroad, either as an immigrant or for
. employment on a permanent basis
C. Who works and derives income from abroad and whose employment thereat requires him to be
physically present abroad most of the time during the taxable year
d. Who has been previously considered a non-resident citizen and who arrives in the Philippines at
anytime during the taxable year to reside permanently in the Philippines with respect to his
income derived from sources abroad for the taxable year
Tax 80-02
2
;
13 A citizen of the Philippines who works abroad and whose employment requires him to be physically
present abroad most of the time during the taxable year is
a Taxable on income within and without the Philippines
b Taxable income from without the Philippines
c. Exempt from the income tax .
a If only one spouse is deriving taxable income, only said spouse may claim the additional
exemption
b If both spouses earn taxable income only one of the spouses can claim additional exemption
c If legally separated from the spouse, the husband can claim the additional exemption unless he
waives the right in favor of his wife C
d M unmarried individual with a child out of the wedlock can clam a personal exemption as a head
-' of the family plus additional exemption , ,, .
CA VY'Nr
17 15 Mr. A with ciepedent minor legitimate children became a widower in January of 2014 In February
of the f9l1ow1ng yea he got married to Ms B and subsequently in November of the same year, the
latter gaveThirifi to three (3) boys For calendar year 2014 Mr A's basic and additional personal
exemption is
a P 75,000 00 P125,000 00
b P 100,000 00 d l501OOO 00
t(6 A German citizen residing in Germany, married, is doing business in the Philippines His country
allows non-resident Filipino with income from Germany a basic personal exemption of P30,000.00 as
head of the family, P40,000 as married and P 15,000 as single The allowed personal exemption he can
claim is -
C
-
a. P 509000.00 .
b. P40,000.00 .
co P30,00000
'
d P15,00000
17 A legally married couple had the following dita in year 2014
a Two qualified legitimate dependent children
b Two dependent nephews
C One illegitimate child of husband
d Oneofthe legitimate children died in January 2014
e. Both. spouses are gainfully employed
.
..
a H—P50,000,W—P 12:000
b H—P 100,000 9 W—P 50,000
c H. P 125,000, W P50,000
-
F\ 18 A, who became a widower in February of taxable year 2014 had the following dependents
a Two legitimate children
'
J. O. A.
b Recognized natural child with current common law wife
C B, his common law wife
d Illegitimate child with another v'oman
.
Tax 80-02
4
19 A, single, earned P200,000 (net of P50,000 withholding tax) compensation income from employment
from July to December 2014 He has a legally adopted child as, qualified dependent and paid P3000
as health and hospitalization insurance premiums from iily to December For 2014 he can deduct
premiums for health and hospitalization insurance of
a. P3,000 .
b P2,400 rA
C. P 1,200
d P0
d. Nephew
. Tax 80-02
5
V 27 The number of dependent children who will qualify for additional exemption purposes shall not
exceed
a. 3 chilcfren .
b. 4 children
. C. 5 children
d. 6 children
28 An unmarried or legally separated man or woman with one or both parents, or with one or more
brothers and sisters, or with one or, more legitimate, illegitimate, or legally adopted children living
with and dependent upon him or her for their chief support, where such brothers or sisters or children
are not more than 21 years of age,., unmarried and not gainfully employed or where such brothers, or
sisters, or children, regardless of age are incapable of self-support because of mental or physical
. defect is •
a: Good father of a family '
b. Married
C. Single
d. Head of the family .
0
f 31 One is correct
a. Where both husband and wife receive compensation income, the additional exemption shall be
claimed by the wife unless she explicitly waives her right in favor of her husband in the
withholding exemption certificate c
b. Husband and wife shall be treated as separate taxable units and each shall be allowed to claim
personal exemption for married individuals.
C If gross income does not exceed P20,000, a d'
dditional èrsonal jxemption of P4,000 may
be claimed by the taxpayer.
d. Husband and wife shall be treated as separate taxable units and shall be allowed to claim only one
personal exemption either for the husband or the wife at their ppfiii
32..A The term "chief support" means {more than one-half fthe requirements for support ..
B If two single individuals contribute equal amounts for the support of a dependent, neither one of
them may qualify as head of the family ,
a. True, true b. True, false .. . J. O. A.
C False, true d False, false
Tax 80-02
6
t
33 A If any of the qualified dependents becomes 2 1' years old during the taxable year, tie taxpayer may,
still claim the same exemptions as if such dependent became 21 years old at the c ose of such year /
B Parents living with and dependentupon the taxpayer for their chiefsupport regardless of their age
willgualifas dependents r
a True, true
b True, false
c_ False, true I •
d. False, false
¶ 34 A If the dependent child marries during the taxable year, the taxpayer may still clain the same
exemption as if the marriage occthred at the close of such year,I
B In the case of married individuals, the personal and additional exemptions shall be claimed by
&if3i one of the spouses N .
t I
a.True,true
b. True, false
C False, true I
d False, false
S
The personal exemption of a non-resident alien engaged in trade or bus' iness in the Philippine is equal
: to that allowed by .
a The income tax law of his country to a citizen on the Philippine not residing there
b. The income tax law of his country to a citizen of the Philippine not residing there or the amount
provided by the NIRC to a citizen or resident whichever is lower
C
The NIRC to , a citizen or residentofthe Philippines
d The income tax law of his country to a citizen of the Philippine not residing there or the amount
provided by the NIRC to a citizen or resident whichever is higher
:6 A If ataxpayer marries during the year,, he may claim the personal exemption for married
individuals in full for such year • . .
B A dependent child who marries within the year may still qualify as dependent for the year
a. True, true b. True, false
C. False, true d. False, false
37 With regard to deduction for premiums on hospitalization and health insurance, which of the
following statements is wrong"
a. Allowed as deduction even if income is fmm compensation only
b. Allowed as deduction even if income is from business or practiceof profession
c Allowed as deduction evç. n if mixed income •
d Allowed as deduction only if the taxpayer is taking - itemized deductions from gross income
V,
38 In which of the following should the additional exemption not , be alloed to the taxpayer?
a An alien, whose dependent child is living with him in the Philippines
b. A resident citizen ,who has a 25 year old mentally retarded son .
C4 A resident citizen, who has a 50 year old mother as his dependent
d. A resident alien with an illegitimate child, 7 years old
39 Which of the following dependents is not qualified to entitle a taxpayer additional personal
exe mption?
a. Recognized natural son who celebrated his 21st birthday during the taxable year.
b Legitimate son, 21 years old who got married on December 3 1 , of the year.
J. O. A.
C. Legally adopted son, 21 years old son whobecame employed December 30, of the taxable year.
d Widowed mother, who celebrated her 59th birthday during the taxable year.
( 5f Ilk
I
Tax 80-02
' "
1
For income tax purposes, which of the following is considered head of the family?
a. Married individual who has dependent minor child.
b ol. Married but legally separated individual with a dependent mother who is 59 years old
C. Single individual with a common law wife .
d. Married individual even if he has no children
41 Which of the following dependents will qualify a single taxpayer as head of the family 9
a Taxpayer's brother, 22 years old, unemployed, unmarried, living with him and dependent upon
himforsupport. <:
b. Taxpayer's sister, 18 years of age, unemployed, unmarried, living with their parents, but
dependent upon him for chief support
C Taxpayer' s illegitimate son, J 2 years old, unemployed, single, living with him and dependent
upon him for support
d. Taxpayer's godchild, 10 years old and dependent upon him for chiefsupport.
' 42 Which of the following statements is wrong 9 The premiums on hospitalization and health insurance
may be deducted . . . .
a. Not to exceed P2,400 a year per family .
b. • Not to exceed P200 per month
C. If the family income does not exceed P250,000
:do By either spouse in the case of married individuals
43-46 A, married, had the following data for the taxable year
Gross income Philippines P400,000
Gross income, USA . 3005000 • ..
Expenses, Philippines 200,000
Expenses, USA 150000
.
43 If the taxpayer is a resident citizen, married his taxable income is
a. P3095000 ...., .
b. P3183,000 .
c. P350,000 .
d P300,000
46 If the taxpayer is a non-resident alien engaged in business in the Philippines married and his country
allows reciprocity of P30,000, as personal exemption for married individuals, his taxable income is
a.
b. P170,000 . . .
C P200,000 J. O. A.
d P150,000
Tax 80702
8
. tk1; ,
J.
If the taxpayer is a non-resident a1ier'engaged in business in the Philippines mam d and his country
grants P35,000 as personal exemption for married individuals, his taxable income is
a P370,000
b P17000 I
C P20000 1
d P400,000
48 Taxpayer, married his girlfriend on December 30, 2013. The following occurred afterwards:
a His wife gave birth to a baby girl on December 31, 2013
b His wife gave birth to twins, both boys on Ncvember 1, 2014
C His wife gave birth to triplets on October 1, 2015
do His wife had a miscarriage on December 3 1, 201 5 resulting to her death
Required Determine the personal and additional exemption of the taxpayer. in 2013, 201. and 2015
- 49 A resident citizen, single with 4 qualified dependent illegitimate children had the foñowing during the
calendar year
Gross ipompensation income P250,000
Expensesfé1atèd to his employment \ 120,000
sss premium contributions - 33600
Philhealth contribution 211,400.
Pag-ibig contnbutions 2,000
Union dues I 3000
Premiums on health insurance 410000
a. P8,000.
b. P1075,702.
C P8,303
d. None. S
:• 54, Nelia in number 53 above was promoted in June 2016,-and starting the same month was given a raise
: •
in salary which is morethan the statutory minimum wage. Will her entire compensation during 2 .016
be taxable and subject to withholding tax?
•!
a. Yes. Her entire earnings shall be taxable.
b No Her entire earnings shall not be taxable
C. Only her earnings from June 2016 to December 201.6 shall be taxable and subject to withholding
tax. S
55 Mr. Gigolo (resident citizen) appoints the Trust Department of Tyra Bank to manage his money
pursuant to, a trust agreement The Trust Department proceeds to invest the money in a 5-year
corporate bond
If Mr. Gigolo withdraws his money from the trust account after 8 years, the interest income from the
corporate bond is:
56 If instead,, the bank in number 55 above, in the name of Mr. Gigolo, invests the money in a 20-year
long-term investment certificate issue'd by Bank of Ruptcy, will the interest income therefrom be
exempt from income tax?
a) Yes, regardless of the holding periods of Mr. Gigolo and the trust
b) Yes, provided the holding period of Mr. Gigolo and the holding period of the trust in the LT
investment certificate are both at least 5 years. .
c) All of-the above.
d) None of the above.
* 57 Kaino sold his residential house and lot located in Manila on January 5, 201 5 for P8,000,000 The
property was purchased in 2005 for P3,000,000. The current market value of the property at the time
of sale was,
d) P540,000
?
I
Tax 80-02
,V., -S-
10
1
58 If Kamo in number 57 above, within 6 months after the sale, purchases another residence for
P8,000,000, what will be the capital gains tax on the sale and what would be the cost (basis) of the
newresidence for income tax purposes 7 cA2 c:cc\c\
:- 60 Suppose Kamo iii number 57, with* n the 18-month reglementary period instead purchases a new
residence at a cost of P5,000,000. What will be the capital gains tax on the sale?
a) P202,500
b) P3003000 \
c) P480,000 c , t
d) P3375500 I
61 In number 60, what would be the cost (adjusted basis) of the new residence for income tax purposes?
b) P1,875 5000
C) P0
d) P5 30 000,000
r
J 62 The following are taxed at a final rate of 20% except
:Lax Rates
On citizens, resident aliens, non-resident aliens engaged in business in the Philippines
On Compensation, business and other Income
Tax 80-02