Professional Documents
Culture Documents
2. KATRINA invested P500, 000 in the shares of stock of Manila 13. Which of the following are zero-rated transactions?
Trading Corp. Later she sold the said shares for only P350, 000. a. Sale of services to Asian Development Bank
The corporation’s shares are listed and are traded in the local b. Sale of services to Internation Rice Research Institute
stock exchange. The percentage tax on the sale is: c. Sale of gold to Bangko Sentral ng Pilipinas
a. None c. P 1, 750 d. Sale of services to duly registered and accredited
b. P 2, 500 d. P 50, 000 enterprises with Philippine Economic Zone Authority.
25. Statement 1: A person subject to excise tax is also subject to 32. Statement 1: Any person who is VAT-registered but enters into
value-added tax. transactions which are exempt from VAT (mixed transactions)
Statement 2: A person subject to percentage tax is also subject may opt that the VAT apply to his transactions which would have
to value-added tax. been exempt under Sec. 109 (1) of the Tax Code as amended.
a. Both statements are correct Statement 2: A seller or lessor of VAT-subject goods, properties
b. Both statements are wrong or services whose actual or expected gross sales and/or receipt
c. Statement 1 is correct while Statement 2 is wrong do not exceed P1,919,500 for any 12-month period who
d. Statement 1 is wrong while Statement 2 is correct registers under the VAT system shall be subject to zero rate on
his exports.
26. Which statement is wrong? Value-added tax on importation of a. Both I and II are true
goods: b. Both I and II are false
a. Is imposed on an importation for sale or for use in c. Only I is true
business. d. Only II is true
b. Is imposed on an importation for personal use.
c. Should be paid prior to removal from customs custody. 33. Which of the following statements is incorrect?
d. Is not available as input tax even if related to business. a. A taxpayer whose annual gross receipts/sales exceed P
1,919,500 shall pay VAT even if he is not VAT registered.
(input tax on importation is availbale only for business b. A taxpayer whose annual gross receipts/sales do not
related importation) exceed P 1,919,500 but who is VAT-registered shall pay
VAT.
27. One of the following statements is incorrect. c. Percentage tax may be imposed together with VAT.
a. Imported goods which are subject to excise tax are no d. Percentage tax maybe imposed together with excise tax.
longer subject to value-added tax.
b. VAT on the importation is paid to the Bureau of Customs 34. One of the following statements is incorrect, which is it?
before the imported goods are released from its custody. a. Imported goods which are subject to excise tax are no
c. Expenses incurred after the goods are released from longer subject to VAT.
customs custody are disregarded in computing VAT on b. VAT on importation is paid to the Bureau of Customs
importation. before the imported good are released from its custody.
d. When a person who enjoys tax-exemption on his c. Expenses incurred after the goods are released from
importation subsequently sells in the Philippines such Customs custody are disregarded in computing the VAT on
imported articles to non-exempt person, the purchaser- importation
non-exempt person shall pay the VAT on such importation. d. When a person who enjoys a tax-exemption on his
importation subsequently sells in the Philippines such
28. Which statement is correct? The value-added tax on an imported articles to a non-exempt person, the purchaser-
importation: non-exempt person shall pay the VAT on such importation.
a. Should be paid by the tax-exempt importer, if he
subsequently sells the goods to a non-tax-exempt 35. Which of the following importation is subject to VAT?
purchaser. a. Importation of frozen meat
b. Should be paid by the non-tax-exempt purchaser to whom b. Importation of apples for personal consumption
the tax-exempt importer sells it. c. Importation of bamboo poles
c. Is a liability either of the tax-exempt importer or the non- d. Importation of grapes for sales
tax-exempt purchaser.
d. Shall not pay the value-added tax because the transaction
was exempt at the point of importation.
29. Three of the following are exempt from the value-added tax.
Which is the exception?
a. Importation of books and any newspapers, magazines,
Tax Rates
review or bulletin.
b. Importation of agricultural and marine food products in
their original state.
c. Importation of petroleum products and their raw materials. Coverage Basis Tax
Rate
Name: ______________________________
Persons exempt from VAT Gross Sales or 3% Finance Companies On interest, 5%
under Sec. 116 Receipts discounts and other
items of gross
Domestic carriers and Gross Receipts 3%
income paid to
keepers of garages
finance companies
International and other financial
Carriers: intermediaries not
performing quasi
banking functions
International air/shipping Gross Receipts 3%
carriers doing business in Interest,
the Philippines commissions and
discounts paid from
Franchise Grantees: their loan
Electric , gas and water Gross Receipts 2% transactions from
utilities finance companies
as well as income
Radio and television Gross Receipts 3% from financial
broadcasting companies leasing shall be
whose annual gross taxed based on the
receipts of the preceding remaining
year do not exceed P maturities of
10,000,000 and did not opt instruments:
to register asVAT taxpayer
• Short term 5%
Banks and non-bank Interest, maturity (not over 2
financing intermediaries commissions and years)
discounts from
lending activities as • Medium term 3%
well as income from (over 2 years but
leasing on the basis not over 4 years)
of remaining • Long Term
maturities of Maturity
instruments:
ο Over 4 years but 1%
• Short term 5% not over 7 years
maturity (not over 2
years) ο Over 7 years 0%
Total premium 5%
0% collected
ο Over 7 years
Proprietors, lessee or
operator of the following:
On Dividends 0%
Cockpits Gross receipts 18%
On royalties, rentals 5%
of properties, real Cabarets, Night or Day Gross receipts 18%
or personal, profits Clubs
from exchange and
Boxing exhibitions Gross receipts 10%
all other items
treated as gross Professional basketball Gross receipts 15%
income under Sec. games
32 of the Code
Jai-alai and race track Gross receipts 30%
Name: ______________________________
(operators shall withheld (IPO)/secondary public otherwise disposed
tax on winnings) offering of shares of stock in accordance with
in closely held the proportion of
Every stock broker who Gross selling price ½ of 1%
corporations stocks sold,
effected a sale, barter, or gross value in
bartered or
exchange or other money of shares of
exchanged or after
disposition of shares of stocks sold,
listing in the stock
stock listed and traded bartered,
exchange
through the Local Stock exchanged or
Exchange (LSE) other otherwise disposed • Up to 25 % 4%
than the sale by a dealer
• Over 25% but not 2%
in securities
over 33 1/3%
A corporate issuer/stock Gross selling price
• Over 33 1/3 % 1%
broker, whether domestic or gross value of in
of foreign, engaged in the money of shares of
sale, barter, exchange or stocks sold, [return to index]
other disposition through bartered,
Initial Public Offering exchanged or