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    B. Winnings Not Exceeding 10,000 D. Interest Income From Bank Deposits

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    Vanesa Calimag Clemente
    Jabie received 800,000 in interest income from a domestic bank and 1,000,000 from a foreign bank, for a total reportable income of 1,800,000. The final tax payable is 0 since interest income from domestic banks is tax-exempt. Helen invested 1,000,000 in a 5-year time deposit with RCBC that paid 15% annual interest. When she withdrew the deposit halfway through in 2018, the proceeds were subject to final tax withholding by the bank. Carrots, which owns 20% of Cabbage, will receive a dividend of 24,000 from Cabbage subject to final withholding since Cabbage is a domestic corporation. S

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    B. Winnings Not Exceeding 10,000 D. Interest Income From Bank Deposits

    Uploaded by

    Vanesa Calimag Clemente
    173 views3 pages
    Jabie received 800,000 in interest income from a domestic bank and 1,000,000 from a foreign bank, for a total reportable income of 1,800,000. The final tax payable is 0 since interest income from domestic banks is tax-exempt. Helen invested 1,000,000 in a 5-year time deposit with RCBC that paid 15% annual interest. When she withdrew the deposit halfway through in 2018, the proceeds were subject to final tax withholding by the bank. Carrots, which owns 20% of Cabbage, will receive a dividend of 24,000 from Cabbage subject to final withholding since Cabbage is a domestic corporation. S

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    Jabie received 800,000 in interest income from a domestic bank and 1,000,000 from a foreign bank, for a total reportable income of 1,800,000. The final tax payable is 0 since interest income from domestic banks is tax-exempt. Helen invested 1,000,000 in a 5-year time deposit with RCBC that paid 15% annual interest. When she withdrew the deposit halfway through in 2018, the proceeds were subject to final tax withholding by the bank. Carrots, which owns 20% of Cabbage, will receive a dividend of 24,000 from Cabbage subject to final withholding since Cabbage is a domestic corporation. S

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    173 views3 pages

    B. Winnings Not Exceeding 10,000 D. Interest Income From Bank Deposits

    Uploaded by

    Vanesa Calimag Clemente
    Jabie received 800,000 in interest income from a domestic bank and 1,000,000 from a foreign bank, for a total reportable income of 1,800,000. The final tax payable is 0 since interest income from domestic banks is tax-exempt. Helen invested 1,000,000 in a 5-year time deposit with RCBC that paid 15% annual interest. When she withdrew the deposit halfway through in 2018, the proceeds were subject to final tax withholding by the bank. Carrots, which owns 20% of Cabbage, will receive a dividend of 24,000 from Cabbage subject to final withholding since Cabbage is a domestic corporation. S

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    © All Rights Reserved
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    of 3

    1.

    During 2018, Jabie, a resident citizen deposited his money in a domestic bank and a foreign bank
    with a short term period. Jabie’s deposit account was credited to a 800,000 interest income and
    he also receives 1,000,000 interest income from the foreign bank

    Required:
    a. How much is the final tax payable by Jabie?
    b. How much income is reportable by Jabie?

    2. On January 1, 2015. Helen invested 1,000,000 to RCBC Commercial Banks with a period of 5
    years tax free time deposit. The long term deposits pays 15% annual interest every January 1. In
    need of cash, Helen pre terminated her investment on July 1 2018.

    Required:
    a. How much is the final tax due and proceeds of Helen’s Deposit?
    b. How much final tax is withheld in the interest income paid by the bank on January 1, 2018

    3. Carrots Inc, owns 20% of the stock of Cabbage corporation. Carrots and Cabbage are both
    domestic corporations. Cabbage declared 120,000 in 2019. How much dividend income after any
    applicable tax will Carrots receive?
    4. Surigao Inc. is the only corporate shareholder of Sison inc. owning 60% of its outstanding voting
    shares. During the year, Sison Inc. declared 1,000,000 dividend. Compute the final income tax to
    be withheld by Sison?

    5. Which of the following is subject to final tax?


    a. Share of the distribute net income of a general professional partnership
    b. Winnings not exceeding 10,000
    c. Prizes not exceeding 10,000
    d. Interest income from bank deposits

    6. Which of the following is exempt from final tax?


    a. Interest income earned by a bank from deposits in another bank
    b. Interest income earned by a bank from lending activities
    c. Royalties from books
    d. All of these

    7. Prizes arising from sources within the Philippines may be


    a. Subject to final tax
    b. Subject to regular tax
    c. Always subject to regular tax
    d. Subject to either final or regular tax
    FINAL - >= 10,000
    REGULAR - <=10,000

    8. The winnings of a resident alien abroad is


    a. Not subject to Philippine income tax
    b. Subject to regular tax
    c. Subject to either final or regular tax
    d. Subject to final tax

    9. Royalty income of a domestic corporation abroad is


    a. Subject to regular tax
    b. Subject to final tax
    c. Subject to either final or regular tax
    d. Not subject to Philippine tax

    10. All of the following are subject to 15% final tax on interest on FCDU Deposit except
    a. Resident citizen
    b. Non resident citizen
    c. Resident alien
    d. Domestic Corporation
    e. Resident foreign corporation

    11. The prizes on the following award or competition is generally taxable


    a. Prize in chess competition sponsored by an organization sanctioned by the Philippine
    Olympics committee
    b. Most charitable person of the year
    c. Nobel prize winner
    d. Pageant competition

    12. Interest income from foreign currency made abroad by a resident citizen is subject to
    a. 20% final tax
    b. 15% final tax
    c. 7.5% final tax
    d. Regular tax

    13. Armando is a partner in a business partnership. At the end of 2010, he has a total of 300,000
    profit sharing on the after tax income of the partnership inclusive of 120,000 salaries as a
    managing partner. Compute the amount final tax to be withheld from Armando’s profit sharing
    a. 12,000
    b. 18,000
    c. 30,000
    d. 0

    14. Assuming the same information above is except that the partnership is a general professional
    partnership compute the final tax to be withheld
    a. 12,000
    b. 18,000
    c. 30,000
    d. 0

    15. Mr. Siegfried, a resident citizen received 100,000 dividend income from Vodka Inc. a resident
    foreign corporation. How much is the final tax must have been withheld by Vodka Inc. ?
    a. 0 (kailangan domestic corporation)
    b. 10,000
    c. 20,000
    d. 25,000

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