TF There are two types of regular income tax: proportional income tax corporations and
progressive income tax for individuals. true
TF Non-Resident Alien Engaged in trade or Business (NRA-NETBs) and Non Resident Foreign
Corporations (NRFCs) are also subject to regular income tax. false
TF All taxpayers are subject to final tax. false
TF Taxable income is synonymous to net income. false
TF For all taxpayers, taxable income means the pertinent items of gross income not subject to
capital gains tax and final tax less allowable deductions. true
TF All taxpayers are subject to regular income tax. true
TF Employed taxpayers can claim expense from their employment as deductions against their
compensation income. false
TF Items of gross income subject to final tax and capital gains tax are excluded in gross income
subject to regular income tax. true
TF The P250,000 income tax for individuals is designed to be in lieu of their personal and business
expenses. false
TF Non-taxable compensation are items of compensation that are excluded against gross income.
true
MC The general rule in income taxation is Final income taxation Incorrect Capital gains
taxation Incorrect Regular income taxation Correct Fringe benefit taxation
Incorrect
MC Active income is subject to Regular tax Correct Capital gains tax Incorrect
Final tax Incorrect Any of these Incorrect
MC The net amount of regular income subject to regular tax is called Taxable income Correct
Compensation income Incorrect Net income Incorrect Gross income
Incorrect
MC Which is not generally subject to regular income tax? Compensation income Incorrect
Business income Incorrect Professional income Incorrect Passive income
Correct
MC What are allowable deductions against gross income? Business expenses Correct Family
supportIncorrect Personal expenses by the taxpayer Incorrect Expenses of
employment Incorrect
MC Deductions are allowed to Employed taxpayers Incorrect Individual taxpayers
only Incorrect Corporate taxpayers only Incorrect Taxpayers engaged in business
Correct
MC Personal exemptions are allowed Employed taxpayers Incorrect Individual
taxpayers only Correct Corporate taxpayers only Incorrect Taxpayers engaged in business
Incorrect
MC Which is not a feature of the regular income tax? Net income tax Incorrect Final
withholding tax Correct Annual tax Incorrect Creditable withholding tax Incorrect
MC Which is true with the final withholding tax? The taxpayer still needs to file an annual
consolidated return. Incorrect It applies to all items of gross income Incorrect It
constitutes a partial payment of income tax. Incorrect It applies to certain passive income
Correct
MC Which is not true with the creditable withholding tax? advances to the annual tax due
Incorrect no need to pay further taxes Correct need to file annual income return
Incorrect applicable to items of gross income Incorrect
