ACTIVITY 1 ● Airfare for cargoes from Japan to Philippines

1. What is the tax rate or tax basis for premiums tax 400,000
(Life Insurance)? ● Airfare for cargoes from Philippines to Japan
Answer: 2% 1,800,000
2. Give at least one person liable for amusement taxes How much is the common carrier’s tax payable for the
Answer: Proprietor, lessee or operator of cockpits, quarter?
cabarets, night or day clubs, boxing exhibitions, 1,800,000 x 3% = 54,000
professional basketball games, Jai-alai and 2. Disney Princess Insurance furnished us its data as follows:
racetracks. ● Insurance Premiums collectible is
3. Based on the tax on winnings how many days from P4,750,000
the date withheld they should file or pay tax? The breakdown of the above premiums is as follows:
Answer: 20 days ● Life Insurance Premiums 65%
4. The operator of one of the following places is not ● Non-Life Insurance Premiums 35%
subject to amusement tax: During the quarter, life insurance premium collected
a. Cockpits b. Racetracks c. bowling alleys represents 60%.
d. night club Compute for the premium tax payable.
5. Philippine Amusement and Gaming Corporation
(PAGCOR) are subject to a franchise tax of? 4,750,000 x 65% = 3,087,500
Answer: 5% 3,087,500 x 60% = 1,852,500
1,852,500 x 2% = 37,050
6. Which of the following franchise grantees is subject Final answer: 37,050
to the 2% percentage tax on franchise?
a. Franchise on radio and/or television 3. SMART-GLOBE Telecommunications has the following
broadcasting companies the data for a particular month:
gross annual receipts in the preceding year do
not exceed P10,000,000. Gross receipts, domestic calls
b. Franchise on gas and water utilities P 5,000,000
c. Franchise on toll road operations Gross receipts, overseas calls
d. PAGCOR and its licensees and franchisees. 3,000,000
(originating in the Philippines)
7. What is the tax rate for boxing exhibition? Purchase of supplies used in connection
Answer: 10% 300,000
8. Percentage tax on international carriers (Sec. 118, with domestic calls net of VAT
NIRC). Also known as COMMON CARRIER’S Business expense
TAX, are subject to _____ of quarterly gross receipts 1,000,000
from transport of cargo from the Philippines to How much is the overseas communications tax collected from
another country persons who used the communications facilities?
Answer: 3%
9. This refers to persons, corporations, firms or OCT= P 3,000,000 * 10%= P 300,000
associations engaged in the business of carrying and
transporting passengers or goods or both by land, 4. In 2021, Pedro invested P 5,500,000 in the shares of stock
water and air for compensation, offering their of Traded Corporation. The corporation’s share are listed and
services to the public and shall include transportation are traded in the local stock exchange. Pedro subsequently
contractors. sold the shares in 2022 for 5,000,000 through the local stock
Answer: COMMON CARRIER exchange.
10. A telephone company, VAT registered, provides Compute for the percentage tax on the sale of shares.
services for domestic and overseas calls. What
business taxes are due from the services offered? STT = P 5,000,000 * .006 = 30,000
Answer: VAT AND OVERSEAS
COMMUNICATIONS TAX 5. Piggy Bank has the following data for the month of January
11. A domestic carrier by land is engaged in the 2021:
transport of passengers. It is not VAT registered and
its annual gross receipts did not exceed Interest income, the remaining maturity
P3,000,000.00 during 2022. To what business tax(es) P100,000
is it liable? of the instrument is 5 years
Answer: COMMON CARRIER’S TAX Rentals (gross of 5% expanded withholding tax)
12. TRUE OR FALSE. 50,000
The filing of percentage tax returns is made annually Net trading loss
as amended on Sec. 40 of the TRAIN Law. (10,000)
Answer: FALSE How much is the gross receipts tax on the collections of Piggy
for January 20201?
13. TRUE OR FALSE
The appropriate tax rate for owners of property INTEREST INCOM – short term
directly obtaining insurance from non-resident 100,000 *5% P 5,000
foreign corporation engaged in insurance businesses RENTAL INCOME
is 4% on premiums paid. 50,000 * 7% 3,500
Answer: FALSE GROSS RECEIPTS TAX P 8,500
14. What is the tax rate and tax basis on sale, barter or 6. December 1, 2015, Rianne borrowed P1,000,000 from BDO
exchange of shares of stock listed and traded through payable within 10 years. The loan pays an annual interest of
the local stock exchange? P100,000 payable every December 1 beginning December 1,
Answer: 6/10 of 1% of gross selling price 2016. On December 1, 2020, Rianne pre-terminated the loan
by repaying the principal in full. The gross receipts tax still
Activity 2. Problem Solving
due from BDO due to pre-termination in 2020 is.
1. Japan Airlines., a resident foreign corp. has the following
Collections for the quarter ending June 2021:
GRT PAYMENT from 1/12/16 to 12/1/19
● Passengers airfare from Japan to Philippines
(100,000*4 years) * 1% (P4,000)
1,300,000
ADJUSTED GRT (400,000 * 5%) 20,000
● Passengers airfare from Philippines to Japan
ADJUSTMENT 16,000
1,000,000
ADD: GRT FOR 2020 (100,000 * 5%) 5,000
GRT TAX DUE – 12/1/20 P 21,000