1.

The following are required to file its quarterly returnable income in 1702Q, except
a. Trust
b. Partnership
c. Domestic corporation
d. Resident foreign corporation

2. Which of the following should use tax return 1702 for its yearly returnable income?
a. taxable income of estate
b. taxable income of irrevocable trust
c. both
d. none

3. If the taxpayer has taxable compensation income and earned professional fee net of creditable
withholding tax, in what ITR should he report all of the above income?
a.1700
b. 1701
c. 1702
d. Both in 1700 and 1701 C

4. The main information reported in 1700 ITR is taken from this form issued by the employer to the
employee earning compensation income
a. 1604C
b. 2303
c. 2307
d. 2316

5. The deadline for filing of the 1st quarter 1701Q is

a. January 31 of the current year
b. March 01 of the current year
c. April 15 of the current year
d. May 15 of the current year

6. The deadline for filing of the 3rd quarter 1701Q is

a. Sept 15 of the current year
b. October 15 of the current year
c. Nov. 15 of the current year
d. Dec. 15 of the current year

7. The deadline for filing ITR 1700 is

a. January 31 of the following year
b. March 01 of the following year
c. April 15 of the following year
d. May 15 of the following year

8. The corporate first quarter 1702Q declaration shall be filed

a. April 15 of the month following the close of first quarter
b. within sixty (60) days following the close of the first quarter
c. May 15 of the month following the close of first quarter
d. within sixty (15) days following the close of the first quarter

9. Which of the following, if the only income earned is not reportable in the ITR 1701?
a. Income withheld with creditable withholding tax
b. Income withheld with expanded withholding tax
c. Taxable Above minimum compensation income
d. Business income of resident citizen earned outside the Philippines

10.The final adjustment 1702 return of domestic corp. which opted for fiscal year as taxable period
shall be filed on or before the fifteenth (15th) day
a. of the fourth (4th) month following the close of the calendar year
b. of April of the year following the taxable year
c. of March of the year following the taxable year
d. of the fourth (4th) month following the close of the fiscal year
11. A resident citizen earned P120,000 commission as real estate broker and P300,000 gross
compensation from employment, inclusive of basic minimum wage of P250,000 and P25,000 13th
month pay for year 2023. How much is the income tax exempt income?
a. 420,000
b. 300,000
c. 250,000
d. 25,000

12. A minimum wage earner has several sources of income. Which of the following of his earnings will
be subject to income tax?
a. Holiday pay
b. overtime pay
c. night shift differential pay
d. professional service income

13. In addition to basic pay of P25,000 per month which is within the minimum wage salary, the
minimum wage earner is receiving regular laundry allowance of P500/month, and fixed
transportation allowance of P5,000/month
How much of his monthly compensation is exempt from income tax?
A.25,000
B.25,300
C.25,500
D. none

14. For the taxable year a resident citizen earned P120,000 commission as real estate broker and
P300,000 gross compensation from employment, inclusive of basic minimum wage of P250,000 and
P25,000 13th month pay for year 2023. How much is his taxable income?
a. 420,000
b. 300,000
c. 120,000
d. none

15. If the take home pay from employment for the year is P425,000 after deducting P50,000 SSS
contribution and P25,000 withholding tax, how much is his gross taxable compensation income?
a. 500,000
b. 475,000
c. 450,000
d. 425,000

16. The employee who is receiving above minimum wage, received P244,800, net of P90,000
withholding tax and P25,200 SSS due, and inclusive of P30,000 13th month pay. His taxable income is
a. 304,800
b. 330,000
c. 360,000
d. 344,800

17. From the gross compensation income of P600,000, the following deductions were made:
SSS and Phil health dues 25,000
Union dues 15,000
Creditable withholding tax 60,000
Included in the above minimum gross income is P50,000 holiday pay.
How much is the taxable portion of the income returnable in the ITR?
a. 600,000
b.560,000
c.500,000
d. none

18. The manager received cash housing allowance of P227,500. His grossed up taxable benefit is
a. 350,000 (227500/ 65%)
b. 334,560
c. 227,500
d. 122,500
19. The manager who is non resident alien of the Philippines, received cash housing allowance
P225,000. The fringe benefit expense of the employer for that payment is
a. 350,000
b. 300,000 (225000/ 75%)
c. 225,000
d. 75,000

20.The final withholding tax remitted for the payment of car allowance to its business manager, a
citizen was P15,750. How much car allowance payment was received by the manager net of tax?
a. 45,000
b. 44,250
c. 33,750
d. 29,250

21. The sale for the year was P3,600,000 including the credit sales in the month of December amounting to
P300,000. The business maintains a gross profit of 20% of the cost. How much is the reportable business
income in the taxable y?
a. 500,000
b. 600,000
c. 660,000
d. 720,000

22. The fixed construction contract price is P10,000,000 and the estimated total completion cost is
P5,000,000. The actual cost incurred/installed in year 1 is P1,200,000. The certificate of completion
attached to the 1702 indicated that it is 20% completed at end of year 1. How much is the reportable
gross business income in year 1?
a. 2,000,000
b. 1,000,000
c. 800,000 (10m x 20%) – 1.2m
d. None

23. How much is the reportable gross business income in year 1, when 25% of total required performance
was certified as completed?
a. 800,000 (10M x 25%)-1.2M
b.1,000,000
c.1,300,000
d. 2,000,000

24.The P10,000,000 construction contract is expected to be 100% completed in year 2. If the actual
accumulated cost at end of year 2 when it is 100% completed is P6,200,000 and the percent completion as
of end of year 1 was 60% at cost of P3,500,000, how much is the reportable business income in year 2?
a. 2,500,000
b. 2,280,000
c. 1,520,000
d. 1,300,000 (10m-6.2m) – ((10m x 60%)-3.5M) =1.3m

25. Which of the following is returnable in 1701 of individual earning it?

a. winnings received by resident citizen from foreign country
b. On prizes in the Philippines exceeding P10,000
c. Informers cash reward to individuals/juridical persons
d. Philippine Charity Sweepstakes and Lotto winnings more than P10,000

26. Which of the following is reportable in 1702 of domestic corporation?

a. gross profit from sale of slow moving inventory
b. 40% MARK UP on the sale of vacant lot held for investment
c. P10,000 gain on sale of interest in subsidiary sold inside stock exchange
d. All of the choices
27.Which of the following is not a requisite for expenses to be allowed as deduction from gross taxable
income?
a. extra-Ordinary in nature
b. Incurred during taxable year
c. Could be substantiated with documents
d. Necessary in the conduct of business

28. A foreign corporation reported the following for 2023:

Business income within the Philippines, P5,000,000 from P6,000,000
Business income outside the Philippines, P4,000,000 from P5,000,000 sales
If it is opting for standard deduction, how much is its Philippine income tax due at normal tax rate of 25%?
a.1,350,000
b. 1,250,000
c. 900,000
d. 750,000

29. The taxpayer reported gross profit of P2,000,000 which is 40% of selling price. If the taxpayer is
electing standard method of deduction, its net taxable income in ITR 1701 is
a.1,200,000
b. 2,000,000
c. 3,000,000
d. 3,200,000

30. The taxpayer reported gross profit of P2,000,000 which is 40% of selling price. If the taxpayer is
electing standard method of deduction, its net taxable income in ITR 1702 is
a.1,200,000
b. 2,000,000
c. 3,000,000
d. 720.000