EASE OF PAYING TAXES ACT (EOPTA) & OTHER TAX UPDATES
1. The following are requisites for deductibility of expenses, except
a. Must be ordinary and necessary
b. Paid or Incurred within the taxable year
c. Connected to trade or business or exercise of profession
d. Supported by sufficient evidence
e. Not against the law, morals, public policy/order
f. If subject to withholding taxes, proof of payment to BIR
2. Statement 1: The tax base for both sale of goods and sale of services is gross sales.
Statement 2: Issuance of VAT invoice is a requirement for both sale of goods and sale of services.
a. Only Statement 1 is true
b. Only Statement 2 is true
c. Both statements are true
d. None of the statements are true
3. The VAT threshold of P3,000,000 shall be adjusted to its present values using the consumer price index
(CPI) every _____ years.
a. 2
b. 3
c. 5
d. 7
4. The VAT exemption threshold for the sale of house and lot and other residential dwellings is
a. P2,000,000
b. P2,500,000
c. P3,199,200
d. P3,600,000
5. Statement 1: Monthly filing is no longer required for VAT returns.
Statement 2: VAT refunds are classified to low, medium and high risk claims based on the amount of
refund, compliance history and frequency of filing of refunds, among others.
a. Only Statement 1 is true
b. Only Statement 2 is true
c. Both statements are true
d. None of the statements are true
6. Statement 1: The tax base for both sale of goods and sale of services subject to OPT (sections 116 to
127) is gross sales.
Statement 2: Philippine Offshore Gaming Operators (POGOs) are subject to 5% gaming tax in
lieu of all other direct and indirect internal revenue taxes and local taxes, with respect to gaming
income.
a. Only Statement 1 is true
b. Only Statement 2 is true
c. Both statements are true
d. None of the statements are true
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7. Which of the following is a document required to be submitted to the International Tax Affairs Division
(ITAD) of the BIR to claim tax treaty benefits?
a. Tax Treaty Relief Application (TTRA)
b. Certificate of Residence for Tax Treaty Relief (CORTT)
c. Both TTRA and CORTT
d. None of the above
8. The following are subject to 25% surcharge, except
a. Failure to file any return and pay the tax due on time
b. Filing a return with an internal revenue officer other than those with whom the return is
required to be filed (wrong venue)
c. Failure to pay the deficiency tax within the time prescribed for its payment in the notice of
assessment
d. Failure to pay the full or part of the amount of tax shown on any return, or the full amount of
tax due for which no return is required to be filed
9. Statement 1: The basic surcharge to micro and small taxpayers is 10%.
Statement 2: The interest on deficiency and delinquency to micro and small taxpayers is 6%.
a. Only Statement 1 is true
b. Only Statement 2 is true
c. Both statements are true
d. None of the statements are true
10. Statement 1: The period allowed for the BIR to act on the application for refund is 180 days from
submission of complete documents.
Statement 2: The taxpayer is given 30 days from the receipt or denial or lapse of 180 days to file an
appeal with the CTA.
a. Only Statement 1 is true
b. Only Statement 2 is true
c. Both statements are true
d. None of the statements are true
11. The books of accounts and other accounting records shall be preserved for a period of _____ years.
a. 3
b. 5
c. 7
d. 10
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