Which of the following is wrong? A. If the seller is a non-VAT registered seller, the government shall withhold a 3% finalpercentage tax on the sale before payment. B. The final withholding system on the sales to the government and GOCC will no longerbe applicable starting 2021. C. VAT treatment on sales to government is the same as VAT treatment on sale to non-government taxpayer except for the mandatory withholding of 5% by the government agency who avail the goods or services offered by the seller D. None of the choices.

Which of the following is wrong? A. If the seller is a non-VAT registered seller, the government shall withhold a 3% finalpercentage tax on the sale before payment. B. The final withholding system on the sales to the government and GOCC will no longerbe applicable starting 2021. C. VAT treatment on sales to government is the same as VAT treatment on sale to non-government taxpayer except for the mandatory withholding of 5% by the government agency who avail the goods or services offered by the seller D. None of the choices.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter16: Multijurisdictional Taxation

Section: Chapter Questions

Problem 32P

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How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2019, customers had made valid claims for 600,000 that were not paid until 2020. Also, the company estimates that another 400,000 in claims from 2019 sales will be filed and paid in 2020. b. The accrual basis taxpayer reported 200,000 in corporate taxable income for 2019. The state income tax rate was 6%. The corporation paid 7,000 in estimated state income taxes in 2019 and paid 2,000 on 2018 state income taxes when it filed its 2018 state income tax return in March 2019. The company filed its 2019 state income tax return in March 2020 and paid the remaining 5,000 of its 2019 state income tax liability. c. An employee was involved in an accident while making a sales call. The company paid the injured victim 15,000 in 2019 and agreed to pay the victim 15,000 a year for the next nine years.
Which of the following is wrong? If the seller is a non-VAT registered seller, the government shall withhold a 3% final percentage tax on the sale before payment. The final withholding system on the sales to the government and GOCC will no longer be applicable starting 2021. VAT treatment on sales to government is the same as VAT treatment on sale to non-government taxpayer except for the mandatory withholding of 5% by the government agency who avail the goods or services offered by the seller. None of the choices
Which of the following is correct? Business taxpayers with annual sales or receipts higher than the VAT threshold who opted to register as VAT taxpayers cannot register back as non-VAT because of the three-year lock-in period. A VAT taxpayer may also be subject to other percentage taxes and excise taxes provided a range of goods and services offered. The basis on imposing a consumption tax on the sale of services is the quarterly sales. Exportation made by business taxpayers normally subject to the general percentage tax is taxable for consumption taxes. All of the other choices is incorrect.
Which of the following is true? a. Business taxpayers with annual sales or receipts higher than the VAT threshold who opted to register as VAT taxpayers cannot register back as non-VAT because of the three-year lock-in period. b. A VAT taxpayer may also be subject to other percentage taxes and excise taxes provided a range of goods and services offered. c. The basis on imposing a consumption tax on the sale of services is the quarterly sales. d. Exportation made by business taxpayers normally subject to the general percentage tax is taxable for consumption taxes. e. All of the other choices is incorrect.
Which of the following is not correct regarding the NOLCO? NOLCO is allowed as deduction from business income for the next 3 succeeding year (5 years if incurred in 2020 and 2021 under the Bayanihan Act II)? Domestic and resident foreign corporation subject to the normal income tax is allowed with NOLCO. Private educational institution enjoying the preferential tax rate is allowed with NOLCO. None of the above.
Final Income taxation is characterized by: Full taxes are withheld by the income payor at source. Recipient receives the income net of tax Payor is the one required by law to remit the tax to government Recipient need not file an income tax return Tax withheld constitutes full tax due and deemed final payments EXAMPLE: Anna is a depositor of East West and earns an interest income of P8,000 in a 6-month time deposit on year 2020. This interest income is subject to 20% final tax or P1,600. Requirements: Discuss final income tax using the names and amounts given. For example, In final income taxation, Anna receives the income of P6,400 net of tax.
A resident citizen obtains P9,500 each from the following sources, net of final tax. Under which of the following passive income does the government obtain the least amount of final tax? interest income from tax-free covenant bonds share in net income of a taxable partnership interest income from bank deposits prizes
[First Item] The following statements are correct relative to a non-VAT registered taxpayer with a gross annual sale of not more than P3,000,000, except: a. The taxpayer is subject to 3% percentage tax. b. The taxpayer may opt to register under the excise tax system based on the value of goods sold at the appropriate tax rate. c. The taxpayer may opt to register under the 12% value -added tax system. d. The taxpayer, once registered under his/her preferred option, shall not be allowed to cancel his/her registration for the next three years
One of the initiatives of the Federal government in recent years was to increase the taxation paid by high income earners, while at the same time, not instituting any “tax hikes”. One way this was accomplished was to reduce the basic personal tax credit for individuals with income greater than $151,978 up to an income level of $216,511. In the following situation, you the taxpayer have an income level of $200,709. calculate and present your reduced non-refundable personal tax credit amount below.