Name______________________________________________ date: ____________

ANSWERS
1 6 11 16 21
2 7 12 17 22
3 8 13 18 23
4 9 14 19 24
5 10 15 20 25

1. ABC corp. leases a residential property for its manager. It pays for the monthly house rental of
its manager in the amount of 60,000How much fringe benefit tax should be remitted by ABC
for the current year?
a. 16,154
b. 32,307
c. 48,462
d. 96,462

2. B&b corporation which is not engaged in trade or business in the Philippines in 2023
It had a gross income of 1,500,000 and expenses of 650,000 on its isolated transaction in the
Philippines
a. 212500
b. 300,000
c. 375,000
d. 450,000

A domestic corporation has the following income and expenses for the year

PHIL ABROAD
GROSS SALES 100,000,000 50,000,000
COST OF SALES 40,000,000 20,000,000
OPERATING EXPENSES 30,000,000 12,000,000

3. How much is the taxable net income for the year 2021?
a. 24,400,000
b. 48,000,000
c. 30,000,000
d. 49,000,00
4. How much is the income tax due assuming the taxable year is 2021?
a. 12,000,000
b. 13,200,000
c. 14,400,000
 d. 18,000,000
5. How much is the income tax due assuming the taxable year is 2021 and the company’s total
asset amounted to 80,000,000?
a. 9,600,000
b. 12,000,000
c. 14,400,000
d. 18,000,000

6. How much is the income tax due assuming

 The taxable year is 2021
 The corporation is a non-resident foreign corporation
a. 7,500,000
b. 13,200,000
c. 14,400,000
d. 15,000,000

Cyril corporation a domestic corporation and a retailer of goods has gross sales of 14,000,000 with a
cost of sales of 7,600,000 and allowable deductions of 2,500,000 for the calendar year 2021. It has
total assets of 150,000,000 as of December 31,2021 per audited financial statements includes the
land costing 50,000,000 and the building of 25,000,000 in which the business entity is situated,with
an aggregate amount of 75,000,000 as fixed asset

7. How much is the income tax due in 2021?

a. 60,000,000
b. 780,000
c. 975,000
d. 1,170,000

Yza Athena corporation, a corporation engaged in business in the Philippines and abroad has the
following data for 2021?

Gross income 975,000

Expenses, Philippines 750,000

Gross income, Malaysia 770,000

Interest on bank deposit 25,000

Assets 15,000,00

8. Determine the income tax due assuming the corporation is a resident foreign corporation
a. 72,000
b. 67,500
c. 56,250
d. 54,250
9. Determine the income tax due assuming the corporation is domestic corporation
a. 116,000
 b. 109,500
c. 73,000
d. 91,250
10. Determine the income tax due assuming the corporation non- resident foreign corporation
a. 320,000
b. 300,000
c. 220,000
d. 250,000

11. A domestic corporation was registered with the BIR IN 2018. What year would the first MCIT
will be imposed on such corporation?
a. 2020
b. 2021
c. 2022
d. 2023

CDE inc. a domestic corporation registered with BIR since 2015 has the following data for 2021 the
taxable year

Gross receipt 11,500,000

Discounts and allowances 2,500,000
Salaries of personal directly involved in rendering services 3,000,000
Salaries of administrative personnel 1,000,000
Fees of consultant directly involved in rendering services 500,000
Rentals of equipment used in rendering services 700,000
Rental of office space for use of administrative personnel 500,000
Other operating expenses 4,200,000
Assets 35,000,000

12. How much is the taxable net income loss?

a. (400,000)
b. (350,000)
c. (890,000)
d. (900,000)
13. How much is the income tax due and payable in 2021?
a. 0
b. 66,000
c. 48,000
d. 96,000

A domestic corporation in its 8th year of operation as of January 1 2021 classified as MSME under
CREATE LAW has the following data:
 2021 2022

Sales 17,000,000 23,000,000

Cost of sales 10.500.000 14,250,000

Operating expense 6,750,000 4,800,000

14. How much is the income tax payable?

a. 65,000
b. 130,000
c. 350,000
d. nil
15. what is the income tax payable in 2022?
a. 87,500
b. 675,000
c. 740,000
d. 1,110,000
16. Prior to the effectivity of CREATE LAW the president upon the recommendation of secretary of
finance may allow domestic and resident foreign corporation the option to be taxed on 15%
gross income provided:
I. The tax rate is 15%
II. Available only to firms whose ratio of cost of sales to gross sales or receipt from all
source does not exceed 55%
III. It shall be irrevocable for the 3 consecutive years during which the corporation is
qualified under the scheme
a. I only
b. I and ii only
c. I II AND III
d. None of the above
17. One of the following is incorrect. the 15% gross income tax on corporation prior to the
effectivity of CREATE LAW is?
a. Applicable to domestic corporation
b. Applicable to resident corporation
c. Applicable to non-resident corporation
d. all of the above

Kris incorporated sold its vacant lot to moca corporation for 10,000,000 which it is acquired at a cost of
5,000,000. The fair market value of the said property per tax declaration was 12,000,000 while its zonal
value was 15,000,000

18. how much is the income tax applicable on the transaction?

a. 600,000
b. 720,000
c. 900,000
d. 1,500,000
 19. Based on the preceding no. if the buyer of the property is the Philippine government or a
government owned and/or controlled corporation (GOCC) what type of income tax will apply on
the transaction?
a. Basic income tax
b. Capital gains tax
c. Either a or b at the option of the seller
d. Either a or b at the option of the buyer

A foreign corporation sold a condominium unit to Pedro for 10,000,000 which it acquired at a cost of
5,000,000. The fair market value of the said property per tax declaration was 12,000,000 while its zonal
value was 15,000,000

20. How much is the capital gains tax?

a. Nil
b. 600,000
c. 900,000
d. 720,000

21. Excess of minimum corporate income tax may be carried forward ____________.
a. For the three (3) immediately succeeding taxable years.
b. For the four (4) immediately succeeding taxable years.
c. For the five (5) immediately succeeding taxable years.
d. For the one hundred seventy eight (178) succeeding taxable years.
22. ABC corporation, a domestic corporation has the following income and expenses for 2021
taxable year
Gross sales 20,000,000
Cost of sales 10,000,000
Operating expenses 6,500,000

How much is the income tax due?

a. 600,000
b. 700,000
c. 800,000
d. 875,000

West star, a domestic corporation, sold shares of stocks of a domestic corporation for 250,000 the
shares were acquired in 2015 for the investment purposes at a cost of 100,000 and were sold
directly to the buyer.

23. Assuming the taxable year was 2019, how much was the capital gains tax due?
a. 10,000
b. 15,000
c. 22,500
d. 45,000
24. How much is the capital gains tax assuming the shares sold were shares of foreign corporation
and the sale was made during the effectivity of CREATE LAW?
A. 10,000
B. 15,000
C. 22,500
D. Nil

Bahala na college, a proprietary non-profit educational institution provided the following dat for
2021

Income from tuition fees 3,000,000

School miscellaneous fees 250,000
Income from canteen operations 750,000
Dividend income from:
Domestic corporation 100,000
Resident foreign corporation 50,000
Rent income 5,700,000
Operating expenses 4,125,000
Quarterly income tax payments 250,000

25. The income tax payable of the school is?

a. 37,500
b. 968,750
c. 1,212,500
d. 1,227,500