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Test Bank Other Percentage Tax

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John Rellon
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3K views

Test Bank Other Percentage Tax

Uploaded by

John Rellon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Business and Transfer Taxes

(Other Percentage Taxes)


1. 1stStatement – A VAT registered person is subject to VAT regardless of his annual gross
sales or receipts.
2nd Statement - A person whose annual gross sales or receipts does not exceed P100,000 is
not subject to VAT but subject to OPT.
a. only the first statement is correct
b. both statements are incorrect
c. both statements are correct
d. only the second statement is correct

2. 1st Statement - Generally OPT Taxes are paid within 20 days after the end of each quarter
2nd Statement - In bank tax, the basis of the OPT is the bank's receipts less interest expenses
a. both statements are incorrect
b. only the first statement is correct
c. both statements are correct
d. only the second statement is correct

3. 1st Statement - Amusement tax on winnings is based on the winnings before deducting
the cost of the ticket.

2nd Statement - The OPT on the winnings is deducted from the dividends or prize and
remitted to BIR within 25 days from the date it was withheld.

a. only the first statement is correct


b. both statements are incorrect
c. only the second statement is correct
d. both statements are correct
e.
4. 1st Statement - The OPT in shares of stocks in closely held corporations is imposed on the
issuing corporation only
2nd Statement - A closely held corporation is any corporation wherein more than 50% of the
OCS is owned directly or indirectly by not more than 20 persons

a. only the first statement is correct


b. only the second statement is correct
c. both statements are correct
d. both statements are incorrect

5. 1st Statement – OPT, like VAT, is an excise tax, hence also a privilege tax.
2nd Statement - A person may be subject to VAT and OPT on the same transaction.
a. both statements are correct
b. only the first statement is correct
c. both statements are incorrect
d. only the second statement is correct

6. Which of the following statements is incorrect?


a. taxpayer whose annual gross receipts/sales exceed P3M shall pay VAT even if he is non
VAT- registered
b. A taxpayer whose annual gross receipts/sales do not exceed P3M but who is VAT-
registered shall pay VAT.
c. Percentage tax may be imposed together with VAT.
d. Percentage tax may be imposed together with excise tax.
[Type here]

7. Which of the following statements is correct?


a. A VAT-exempt taxpayer who issues VAT invoice shall not be liable to VAT.
b. Every person liable to the percentage tax shall always file a separate return for each
branch or place of business.
c. Cooperatives shall be exempt from the 3% gross receipts tax.
d. Motorized tricycle are not subject to percentage tax.

8. A person whose business is to keep automobiles for hire or keep them stored for use or
order
a. Keepers of garage
b. Common carrier
c. Tourist bus operator
d. Taxicab operators

9. One of the following is not subject to the 3% percentage tax.


a. International air carrier doing business in the Phils.
b. Domestic carriers and keepers or garage.
c. Franchise grantee of city gas and water utilities
d. International shipping carrier doing business in the Phils.

10. Amounts received for overseas dispatch, message, or conversation originating


from the Philippines are subject to:
a. 2% franchise tax
b. 10% overseas communication tax.
c. 3% franchise tax.
d. None of these.

11. One of the following is not subject to amusement tax on gross receipt
a. Professional basketball
b. Bowling alleys
c. None of these.
d. Cockpits

12. . One of the following statements is incorrect.


a. The 60% of 1% tax shall be collected by the brokers who made the sale and shall be
remitted within 5 banking days from the date of collection.
b. The 60% of 1% tax stock transaction is collected whether there is an income or a loss and
is a percentage tax.
c. The 60% of 1% stock transaction tax is a final withholding income tax.
d. The tax paid on sale of shares through local stock exchange and initial public offering
(IPO) and secondary offering shall not be allowable deduction for Income tax purposes.

13. Admission fees received by cockpits and race tracks are subject to
a. tax on paid admission
b. tax on gross receipts
c. tax on amusement
d. tax on winning

14. Statement 1: A sale of 33% of outstanding shares of stock in an initial public


offering of shares of stock is subject to a 2% other percentage tax.

Statement 2: In case of financial leasing the taxable gross receipts exclude recovery of principal.
a. Both statements are false
b. Only statement 1 is true
c. Both statements are true
d. Only statement 2 is true
[Type here]

15. Which of the following gross receipts may be subject to business tax?
a. Transport of passengers by land using animal-drawn, two-wheeled vehicles
b. Transport of passengers by water using bancas.
c. Compensation paid to professionals for services rendered
d. Compensation income of an individual taxpayer.

16. Which of the following statements is correct?


a. Overseas dispatch, message or conversations subject to a percentage tax of 10%.
b. The "Gross Philippine Billing" includes total amount of gross revenue including
noncontinuous and interrupted flight.
c. The gross receipts of gas and water franchise grantees are subject to a 3% percentage tax
d. A VAT-registered radio and TV broadcasting company is subject to a percentage tax of 3%
if its total gross receipts during the year is P1,500,000 and below.

17. The percentage tax return is to be filed and paid within


a. 20 days after the end of each taxable month
b. 25 days after the close of each taxable quarter.
c. 25 days from date of the transactions
d. 30 days from date of the transactions.

18. Which of the following business is not subject to percentage tax?


a. Life insurance companies
b. Carriers of passengers
c. Carriers of cargoes
d. Sale of shares of stock in PSE

19. In the third quarter of 2019, a taxpayer engaged in the sale of services whose
annual gross receipts do not exceed P3M has the following data:

Accounts receivable, beginning of quarter P 50,000

Sales during the quarter 100,000

Accounts receivable, end of quarter 75,000

Purchase of supplies, total invoice amount 11,200

A
The percentage tax due for the quarter is
A. P2, 250
B. P3,000
C. P7,800
D. None of these.

C
Assuming the taxpayer is VAT-registered, the VAT payable is:
A. P 2,250

B. P3,000
C. P 7,800
D. None of these
[Type here]

20. Grandbaby is a common carrier by sea. During a particular quarter, its receipts
consist of the following:
Transport of passengers P 1,000,000

Transport of goods 1,500,000

Transport of cargoes 500,000

A
The common carriers tax payable is
A. P30,000
B. P 90,000

C. P 100,000
D. None of these.

A
Using the data above, the output VAT is: (Figure w/out VAT)
A. None of these.

B. P 90,000

C. P 100,000
D. P 200,000

21. Mr. J. Cruz is the owner of a small variety store. His gross sales la any one year do
not exceed of P3M. He is not VAT-registered the following data are taken from the books
of the variety store for the quarter ending March 31, 2026
Merchandise inventory, December 31, 2025 P 100,000

Gross sales 450,000


Purchase from VAT-registered suppliers 350,000

The percentage tax due is:


a. None of these.
b. P 16,500
c. P 10,000!
d. P 13,500
22. BERT operates a cockpit. Inside the cockpit, he also operates a restaurant. Data
for the particular quarter follow:

Gross receipts:
Cockpit operation - P 500,000
Restaurant operation:
Sale of food - 100,000
Sale or liquor - 150,000

A
The amusement tax due from BERT is:
A. P 90,000
B. P 135,000
C. P 225,000
D. None of these

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