Since 1977

TAX TABAG
Final Preboard Set A October 2019

1. The Philippine income tax system has the following c. Only Statement 1 is correct
features, except: d. Only statement 2 is correct.
a. The individual income tax system is mainly
progressive in nature. 8. Earl Garci, a resident and national of the United
b. Indirect rather than direct system. Kingdom flew into the Philippines to woo Ana D.
c. Semi-global and semi-schedular system Mapalad. A Filipina she met via Facebook. During Ear
d. Comprehensive tax situs by using the nationality, Garci’s visit to Ana’s home, her father informed him
residence, and source rules. that he would have to go through the traditional
courting which is strictly followed in their Family. This
2. Which of the following is correct? entails, fetching water from the deep well to their
Legislative Administrative house, chopping wood and others. To this, Earl agreed.
a. Fixing of tax rates Yes Yes On his 8th month of courtship, Ana died on a freak
b. Evaluation of object of tax Yes No accident while drinking a cup of coffee. With tears in
c. Collection of tax Yes No his eyes, Earl returned home and vowed not to return
to the Philippines. For purpose of income taxation,
d. Assessment of tax liability No Yes Richard shall be classified as:
a. Resident alien
3. Raising revenue is the primary purpose of taxation, b. Non-resident alien engaged in trade or business
which of the following is not one of the secondary c. Non-resident alien not engaged in trade or
purposes of taxation: business
a. Reduction of social inequality d. None of the Above

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b. Encourage economic growth by granting incentives

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and exemptions 9. Who among the following individual taxpayers is
c. Promotion of general welfare

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taxable on income from within and without the
d. Protection of foreign interests eH w Philippines:
a. Amber, a native of Bacolod, working as overseas
4. Which of the following statements is correct?

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contract worker in Dubai.
a. Indirect double taxation violates the Constitutional
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b. Tracy, a resident of Manila and citizen of Australia;
provision of uniformity and equal protection. who has been working in the Philippines for the
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b. There is direct double taxation in taxing the past 10 years.

income of the corporation and again subject the c. Manuel Chavez, a resident and citizen of Puerto
portion of that income declared as dividend to final Rico, sent to the Philippines, as an employee of a
tax. local brewery for 5 months.
c. Indirect double taxation is legal as long as there is
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d. Juan Cruz, a Filipino, who was sent by his

no violation of equal protection and uniformity employer to the United States for 5 months.
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clauses of the Constitution.

d. All of the above
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10. Under the Creditable Withholding Tax system, which of

the following statement is incorrect?
5. Which does taxing power of the provinces, a. Taxes withheld on certain income payments are
municipalities and cities precede from? intended to equal or at least approximate the tax
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a. Constitutional grants due of the aye on said income.

b. Legislative enactment
ed d

b. The recipient of the income is no longer required to

c. Presidential decree or Executive act file an income tax return as prescribe under the
d. Local legislation
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Tax Code.
c. The payee is required to report the income and pay
6. The 30% corporate income tax is increased to 35% by the difference between the tax withheld and tax
the Congress for the purpose of raising revenue to be due thereon.
used for national road expansion project near Bonifacio d. Taxes withheld under this system are creditable in
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Global City, a private corporation. Is the exercised of nature.

the taxing power unconstitutional?
a. Yes, because taxing power must be exercised
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11. An employee may still qualify as a Minimum Wage

exclusively for public purpose without any Earner (MWE) notwithstanding his receipt of the
incidental benefit to any private entity. following, except:
b. No, because the it is exercised directly for public a. Holiday pay & Overtime pay
purpose and the benefit to a private entity is only b. Nightshift differential & Hazard pay
incidental.
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c. Commissions and Other Allowances

c. Yes, because the increase in tax rate constitutes d. None of the Above
deprivation of right to property of corporation
without due process of law for being excessive and 12. First statement: An individual who earns purely
unreasonable. compensation income which does not exceed the
d. No, because the constitution does not expressly minimum wage is exempt from income tax thereon.
state that the power of taxation must be used only Second Statement: An individual who derives purely
for public purpose, thus, it may be used to benefit compensation income at minimum wage who at the
a private entity. same time is given overtime pay by his employer is
exempt from income tax thereon.
7. Statement No. 1: Generally, an OFW shall be subjected a. True, True c. True, False
to the same tax rules that applies to a resident citizen. b. False, False d. False, True
Statement No. 2: A non-resident alien not engaged
in trade or business shall be subjected to a final tax 13. Individuals earning purely compensation income shall
rate of 25% on all income derived from sources within be taxed based on the:
the Philippines, including gain on sale of shares of a. Graduated income tax rates
stocks of a domestic corporation. b. 8% income tax rate if the total compensation
a. Both statements are correct. income does not exceed the VAT threshold.
b. Both statements are incorrect.

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EXCEL PROFESSIONAL SERVICES, INC.

c. 8% income tax rate or graduated income tax rates c. Resident alien, 65 years old
at his discretion. d. None of the above
d. Graduated income tax rates provided his total
compensation income exceeds the VAT threshold. 22. Pedro operates a ten-door apartment with a monthly
rental of not more than P15,000 per unit/door. He
Use the following data for the next two (2) questions: sold the property to Juan in 2018. The sale shall be
14. Ms. Gerlyn operates a convenience store while she subject to:
offers bookkeeping services to her clients. In 2018, her a. Capital gains tax
gross sales amounted to P800,000, in addition to her b. Other percentage tax
receipts from bookkeeping services of P300,000. She c. Graduated tax rate
already signified her intention to be taxed at 8%
income tax rate in her 1st quarter return. Her income d. Value added tax
tax liability for the year will be:
a. P24,000 c. P68,000 Use the following data for the next two (2) questions:
b. P64,000 d. P88,000 During 2019, Alpha Corporation gave the following fringe
benefits to its employees:
15. If Ms. Gerlyn failed to signify her intention to be taxed Salaries to rank in file employees P 1,000,000
at 8% income tax rate on gross sales in her initial Salaries to managerial employees 1,800,000
quarterly income tax return, and she incurred cost of De minimis benefits to rank and file 54,400
sales and operating expenses amounting to P600,000 De minimis benefits to managerial
and P200,000 respectively, the income tax shall be: employees 27,200
a. P10,000 Fringe benefits to rank and file 102,000
b. P55,000 Fringe benefits to managerial employees 170,000
c. P125,000
d. Exempt from Income Tax 23. How much is the fringe benefits tax?
a. P48,000 c. P91,538
16. In general, the applicable rate in computing fringe b. P80,000 d. P166,400
benefit tax beginning January 1, 2018 is:

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a. 32% c. 30% 24. How much is the total allowable deduction from

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b. 25% d. 35% business income of Alpha Corporation?
a. P3,153,600 c. P3,245,138

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17. Which of the following housing benefits is exempt from
eH w b. P3,233,600 d. P3,271,600
income tax?
a. Housing unit inside or adjacent (within 50 meters) 25. Which of the following royalties earned within the

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from the perimeter of the business premises. Philippines is not subject to 10% final withholding tax?
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b. Temporary housing for a stay in the housing unit a. Royalties from computer software
for (3) months or less. b. Royalties from books
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c. Housing privilege of military officials of the Armed c. Royalties from literary works
Forces of the Philippines d. Royalties from musical compositions
d. All the above
26. Minimum Wage Earners (MWEs) receiving “other
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Use the following data for the next two (2) questions: benefits” exceeding P90,000 limit shall be:
a. Taxable on the excess benefits only
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Mr. Hinada, a Japanese citizen residing in Osaka, sold his

shares of stock in Pacman Corporation (domestic b. Taxable on the excess benefits as well as his
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corporation) to Ms. Japlos, a Filipina, for P800,000. He salaries, wages and allowances, just like an
purchased five months ago for P500,000 employee receiving compensation income beyond
18. The correct amount of tax is: the statutory minimum wage.
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a. P45,000 capital gains tax. c. Exempt from income tax

b. P120,000 capital gains tax. d. None of the above
ed d

c. P1,800 stock transaction tax

Use the following data for the next four (4) questions
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d. P4,800 stock transaction tax Ferdy won the recently raffled Super Lotto in the amount
of P1B. He plans to deposit P750,000,000 of his lotto
19. Assuming Pacman Corporation is listed in the local winnings with Bangko Natin and P250,000,000 in foreign
stock exchange, the correct amount of tax is: currency with ABN Amro under an expanded foreign
a. P45,000 capital gains tax. currency deposit system.
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b. P120,000 capital gains tax.

c. P1,800 stock transaction tax 27. If Ferdy is a resident citizen, the lotto winnings shall be
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d. P4,800 stock transaction tax subject to:

a. 20% Final Taxes
20. The income tax due of a mixed income earner who b. 25% Taxes
opted to be taxed at 8% income tax rate shall be: c. Exempt from Income Taxes
d. Added to Gross Income and Subject to 20-35%
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I. The tax due from compensation, computed using

Graduated Taxes
the graduated tax rate.
II. The tax due from self-employment and/or practice 28. If Ferdy is a non-resident alien engaged in trade or
of profession, resulting from the multiplication of business in the Philippines, the lotto winnings shall be
the 8% income tax rate with the total of the gross subject to:
sales/receipts and other non-operating income. a. 20% Final Taxes
III. The tax due from compensation and from self- b. 25% Taxes
employment and/or practice of profession, c. Exempt from Income Taxes
resulting from the multiplication of the 8% income d. Added to Gross Income and Subject to 20-35%
tax rate. Graduated Taxes
a. I only c. III only
29. If Ferdy is a resident alien, the interest income to be
b. II only d. I and II only earned from deposits in BPI shall be subject to:
a. 15% Final Taxes
21. Which of the following will not qualify as senior citizen? b. 20% Final Taxes
a. Resident Filipino citizen, 60 years old c. 25% Taxes
b. Filipino citizen with dual citizenship, 60 years old, d. Exempt from Income Taxes
six months residency in the Philippines

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EXCEL PROFESSIONAL SERVICES, INC.

30. If Ferdy is a non-resident alien not engaged in trade or 36. How much is Masaya’s income tax due for 2019, and
business in the Philippines, the interest income to be where will he indicate it in his annual ITR?
earned from deposits in foreign currency with ABN a. P172,000; Part IV, Schedule IVC, Item 64; Part II,
Amro under an expanded foreign currency deposit Item 21.
system shall be subject to: b. P172,000; Part IV, Schedule IVB, Item 56; Part II,
a. 15% Final Taxes Item 20.
b. 20% Final Taxes c. P192,000; Part IV, Schedule IVB, Item 56; Part II,
c. 25% Taxes Item 20.
d. Exempt from Income Taxes d. P192,000; Part II, Item 22, 23, 29 and 30

Use the following data for the next three (3) questions: 37. How much is Masaya’s total income tax credits for
Because of dire necessity, Pedro (resident citizen) sold a 2019, and where will he indicate it in his annual ITR?
parcel of land located in Batangas for P8,000,000 with a a. P80,000; Part IV, Schedule IVB, Item 55.
cost of P10,000,000. The fair market value of the land was b. P72,000; Part IV, Schedule IVB, Item 56; Part II,
P11,000,000 as determined by the BIR under a zonal Item 20.
valuation schedule. Fair market value under local c. P152,000; Part IV, Schedule IVC, Item 64; Part II,
assessment rolls pegged the lot at P8,000,000. The Item 21.
proceeds of the sale were used to purchase principal d. P152,000; Part II, Item 22, 23, 29 and 30
residence in Manila.
38. How much is Masaya’s income tax payable, and where
31. The sale of land resulted a tax consequence of: will he indicate it in his annual ITR?
a. P480,000 capital gains tax on sale of real property a. P20,000; Part II, Item 22, 23, 29 and 30
b. P600,000 capital gains tax on sale of real property b. P20,000; Part IV, Schedule IVC, Item 64; Part II,
c. P660,000 capital gains tax on sale of real property Item 21.
d. None of the above. c. P92,000; Part IV, Schedule IVB, Item 55.
d. P100,000; Part IV, Schedule IVB, Item 56; Part II,
32. Assuming Pedro is an nonresident alien not engaged in Item 20.
trade or business, the sale of land will result to a tax

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consequence of: 39. Which of the following transactions of a VAT-registered

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a. P480,000 capital gains tax on sale of real property seller is not subject to VAT?
b. P600,000 capital gains tax on sale of real property a. Remaining inventory upon retirement from

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c. P660,000 capital gains tax on sale of real property
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d. P2,750,000 final withholding tax b. Sale of company’s used car to its officers
c. Sale of goods or services to the national

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33. If the buyer is the government, the sale of land shall
government
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be subject to:
a. Capital Gains Tax d. Sale of residential lot amounting to P1,000,000
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b. Final Tax on Passive Income

c. Ordinary Returnable Income Tax 40. Bryan, vat registered person, imported machines from
d. A or C Australia as follows:
Machine Acquisition Cost Purpose
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Use the following data for the next five (5) questions A P100,000 Personal use
(Refer also to the attached ITR Form): B 200,000 Business use
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Juan Dela Cruz started practicing his profession as a CPA C 300,000 For sale
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on January 1, 2019. He received a total amount of

P2,320,000 professional fees during the year, net of The importations were subjected to 50% excise tax
creditable withholding tax of P80,000.
based on purchase price. Machine C was sold for
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Additional data: P1,000,000 exclusive of vat.

ed d

He also earned the following during the year:

 Interest income from bank deposit, P8,000 How much is the vat paid to the BOC?
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 Royalty income from book publication, P150,000 a. P108,000 c. P54,000

 He chose to avail of the 8% income tax rate in his first b. P90,000 d. P36,000
Quarterly ITR.
 His total quarterly income tax payments amounted to 41. Using the above data, the amount of vat to be
P72,000
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remitted to the BIR should be

a. P12,000 c. P106,000
34. What annual return should he file before April 15, b. P30,000 d. P84,000
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2020?
a. BIR FORM No. 1701 – Individuals (Including Mixed
Income Earners), Estates, and Trusts). 42. World Power Corp. imported an article from Japan. The
b. BIR FORM No. 1701A – Individuals Earning Income invoice value of the imported articles was $7,000 ($1-
Purely from Business/Profession (Those under the P50). The following were incurred in connection with
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graduated income tax rates with OSD as mode of the importation:

deduction OR those who opted to avail of the 8% Insurance P 15,000
flat income tax rate. Freight from Japan 10,000
c. BIR FORM No. 1700 – Individuals Earning Purely Postage 5,000
Compensation Income. Wharfage 7,000
d. None of the above. Arrastre charges 8,000
Brokerage fee 25,000
35. How much is his taxable income from business, trade, Facilitation fee 3,000
or practice of profession and where will he indicate it in
his annual ITR?
The imported article was imposed P50,000 customs
a. P172,000; Part IV, Schedule IVB, Item 56; Part II,
Item 20. duty and P30,000 excise tax.
b. P172,000; Part IV, Schedule IVB, Item 56; Part II, The Company spent P5,000 for trucking from the
Item 20. customs warehouse to its warehouse in Quezon City.
c. P2,150,000; Part IV, Schedule IVB, Item 55 The carrier is not subject to VAT.
d. P2,400,000; Part IV, Schedule IVB, Item 55
The VAT on importation is:
a. P60,000 c. P60,600

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EXCEL PROFESSIONAL SERVICES, INC.

b. P42,000 d. P80,000 a. 5 years in case of judicial settlement, and 2 years

in case of extrajudicial settlement
b. 2 years in case of judicial settlement, and 5 years
43. Which of the following shall be exempt from vat? in case of extrajudicial settlement
a. Services of banks. c. 2 years in case of judicial settlement and 3 years
b. Services of money changers and pawnshops. in case of extrajudicial settlement
c. Services of credit cooperatives d. 3 years in case of judicial settlement and 2 years
d. All of the above in case of extrajudicial settlement

44. Pedro, single, died leaving properties he inherited 4 ½ 49. Statement 1: Facilitation expense shall be included in
years ago which had fair market value of P 800,000 at the determination of applicable input vat on
the time of his death (P650,000 at the time of importation.
inheritance. Pedro mortgaged the property for P50,000 Statement 2: Presumptive input vat are creditable
when he already owned it. He paid the mortgage
indebtedness before he died. against output tax only if the taxpayer is allowed to
avail for 0% vat on its export sales.
Other properties in his gross estate had fair market a. Only statement 1 is correct
value of P1,000,000. The total expenses, losses, b. Only statement 2 is correct
indebtedness, taxes and transfer for public purpose
amounted to P300,000. How much was the vanishing c. Both statements are correct
deduction? d. Both statements are incorrect
a. P108,333 c. P225,000
b. P208,333 d. P508,333 50. LBC Express Padala-España branch also offer local and
overseas communication services to its customers in
addition to other services offered. It has the following
Use the following date for the next two (2) questions: data for a particular month:
In January 2018, JJ received a piece of land with fair Gross receipts, domestic calls P5,000,000
market value at P1,500,000 from his wealthy best friend

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Gross receipts, overseas calls 3,000,000

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as a birthday gift. Since JJ had no use of the said donated (originating in the Philippines)
land he immediately sold it to Leomar for only P1,000,000. Purchase of supplies used in 300,000

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45. What is the total tax liability of JJ?
VAT
a. P15,000 c. P75,000

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Purchase of equip. used in connection 800,000
b. P30,000 d. P90,000
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with both domestic calls and overseas
calls, net of VAT
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46. Assuming the wealthy best friend required JJ to pay Business expense 1,000,000
him a token amount of P100, how much is the gross
gift that the wealthy best friend had to report in his
donor’s tax return? How much was the overseas communications tax
collected from persons who used the communications
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a. None. Donation of real property is exempt from

facilities?
donor’s tax but subject to 6% capital gains tax.
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a. P800,000 c. P300,000
b. The sale is considered fictitious, hence, subject to
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b. P500,000 d. P0
donor’s tax at the gross amount of gift P1,500,000.
c. P1,499,000 51. Red Mobile Communications has the following data for
a particular month:
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d. None of the above

Gross receipts, domestic calls P5,000,000
ed d

47. Which of the following statements is incorrect? Gross receipts, overseas calls 3,000,000
(originating in the Philippines)
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a. If at any time during a given taxable year, a

Purchase of supplies used in 300,000
taxpayer’s gross sales or receipts exceeded the
connection with domestic calls net of
VAT threshold (P3,000,000.00) , he/she shall VAT
automatically be subjected to the graduated rates Purchase of equip. used in connection 800,000
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under Section 24 (A) (2) (a) of the Tax Code, as with both domestic calls and overseas
amended. calls, net of VAT
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b. A non-VAT registered taxpayer who initially opted Business expenses 1,000,000

to avail of the 8% option but has exceeded the How much is the VAT payable, if any?
VAT threshold during the taxable year, shall be a. P504,000 c. P420,000
subject to 3% option Percentage Tax on the first b. P470,000 d. P0
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P3,000,00.00 of his/ her gross sales/receipts under

52. Three of the following are subject to the value-added
Section 116 of the Tax Code, as amended, with tax. Which is the exception?
imposition of penalty even if payment is timely a. Sales or importation of pet foods.
made on the following month when the threshold is b. Sale by a person exempt from the VAT who issued
breached. a VAT receipt thereon.
c. The excess of the threshold shall be subject to VAT c. Receipts from leasing of residential units with a
prospectively, and the 8% income tax previously monthly rental of P15,000 per unit. Whereby the
paid shall be credited to the Income Tax Due under lessor has 50 units for lease.
the graduated rates provided in Section 24 (A) (2) d. Importations by persons who are not VAT
(a) of the Tax Code, as amended. registered.
d. None of the choices
53. A dealer in securities has the following for the year
48. The law provides for an extension of payment of estate 2018:
tax. The period of extension shall not exceed: Sale of securities held for sale in the P4,000,000

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EXCEL PROFESSIONAL SERVICES, INC.

ordinary course b. Death of the decedent

Cos of securities held for sale in the 2,500,000 c. Filing of estate tax return
ordinary course d. Either letter “b” or “c” whichever will result to
Supplies expense, net of vat 300,000
higher estate tax liability
Rent expense, net of vat 500,000
The vat payable shall be:
58. Part of the estate left by A are preference shares of
a. P180,000 c. P84,000 MERALCO. The shares are listed and traded in the
b. P96,000 d. nil Philippine Stock Exchange. Which of the following rules
of valuation is correct?
54. The administrator of the Estate of Juan Santos claims a. The preference shares will be valued using the
as deduction from the gross estate a receivable from a arithmetic mean between the highest and lowest
person who absconded. His assertion is that the claim quotation at the date nearest the date of death, if
against that person can no longer be collected. He also
explains that for income tax purposes bad debts are none is available on the date of death itself.
deductible from the gross income so the receivable b. The preference shares will be valued based on
from a person who absconded shall also be treated in their book value.
the same manner as in estate tax. Despite the
c. The preference shares will be valued based on
administrator’s contention the BIR disallowed as
deduction the claim against a person who absconded. their par value.
Is the BIR correct? d. The preference shares will be valued based on
a. Yes, to be allowed as deduction from the gross their fair market value as determined by the
estate the claim must be against an insolvent Commissioner of Internal Revenue
debtor and that the incapacity of the person must
be a fact and not merely alleged. 59. A resident alien decedent left a gross estate amounting
b. No, not to allow it to be deducted from the gross to P1,200,000, which of the following statements is
estate will be a great injustice because of the fact correct?

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a. The estate may be liable to estate tax.

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that collection is almost impossible.
c. No, all items that are deductible from gross income b. The estate may not be liable to estate tax.

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for income tax purposes are also allowed to be
eH w c. The estate is absolutely not liable to estate tax.
deducted from the gross estate. d. The estate is absolutely liable to estate tax.
d. Yes, the regulations are not clear and it requires

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60. Deductible claims against the estate or indebtedness in
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BIR ruling for such claim to be allowed as
deduction. respect of property may arise out of, except:
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a. Contract
55. Juan Dela Cruz procured a life insurance upon his own b. Tort
life. He designated his estate’s executor as an c. Operation of law
irrevocable beneficiary. For estate tax purposes, the d. None of the choices
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proceeds of life insurance is:

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a. Included in the gross estate of Juan Dela Cruz 61. Mr. Pobre is in need of money to start a small
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because when the executor of the estate is business. However, he has no property to secure a
beneficiary, the proceeds are included in the gross loan from a bank so he sought the help of his good
estate regardless of the designation. friend Mr. Rich. Mr. Rich then obtained a loan from
Banco de Uro amounting to 1million pesos secured by
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b. Not included in the gross estate of Juan Dela Cruz

a real property worth 2million pesos to accommodate
because the designation of the beneficiary is
ed d

the request of Mr. Pobre. If subsequent to securing

irrevocable. the loan and delivering to Mr. Pobre the proceeds, Mr.
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c. Included in the gross estate of Juan Dela Cruz Rich died, how much gross estate should be reported?
because proceeds of life insurance are always a. P1,000,000 c. P3,000,000
subject to estate tax. b. P2,000,000 d. zero
d. Not included in the gross estate because, as a rule,
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proceeds of life insurance are generally not subject 62. Ms. Ty bought a condominium from Ayala Corporation.
to estate tax. Based on the contract to sell executed between the
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parties, the buyer is obligated to secure a life

insurance designating the seller as the irrevocable
56. An off-line international air carrier having a branch beneficiary. The insurer is mandated to pay whatever
office or sales agent in the Philippines which sells is the unpaid obligation of the buyer to the seller in the
passage documents for compensation or commission to event of untimely death of the former. Unfortunately,
cover off-line flights of its principal or head office or for
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Ms. Ty died while there is still an unpaid obligation to

other airlines covering flights originating from the the seller amounting to P3,000,000. The zonal value of
Philippines ports or off-line flights is the condominium at the time of death is P6,000,000.
a. Subject to 2 ½ % income tax on its gross How much should be included in the gross estate?
Philippine billings a. P9,000,000 c. P3,000,000
b. Subject to 3% common carrier’s tax on gross b. P6,000,000 d. zero
Philippine billings
c. Not subject to 2 ½ gross Philippine billings tax nor 63. Based on the preceding number, how much is the
to the 3% common carriers tax deductible claims against the estate?
d. Subject to both the 2 ½ gross Philippine billings a. P9,000,000 c. P3,000,000
and to the 3 % common carriers tax b. P6,000,000 d. zero

64. In determining the gross estate of a married decedent,

57. It is a well settled rule that estate taxation is governed which of the following should be excluded?
by the statute in force at the time of:
a. Exclusive properties of the decedent
a. Creation of the last will testament or death of the
b. Share in the common properties by the decedent
decedent in case of intestate succession

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 EXCEL PROFESSIONAL SERVICES, INC.

c. Share in the common properties by the surviving a deed of donation written in banana leaves. What is
spouse the status of the donation?
d. None of the above
a. Valid c. Voidable
65. The following properties will be classified uniformly b. Void d. Unenforceable
under Conjugal Partnership of Gains and Absolute
Community of Property, except:
a. Property inherited or received as donation during 69. Cito Yu has a building located in Shorthorn Quezon
City currently leased to various tenants. Since he is old
the marriage already and wants to retire from active business, he
b. Property acquired from labor, industry, work or sold the same to Janjan, his son, for 20 million pesos.
profession of spouses The value of the building at the time of sale is 40
million pesos. Which of the following statements is
c. Fruits or income due or derived during the
correct?
marriage coming from common properties a. The sale is for sufficient consideration
d. Fruits or income due or derived during the b. The sale is for insufficient consideration subject to
marriage coming from exclusive properties donor’s tax
c. The sale is for insufficient consideration but
66. The following deductions are also part of the gross
estate, except: exempt from donor’s tax since the object is a real
a. Claims against the estate property
b. Claims against insolvent persons d. The sale is subject to capital gains tax and donor’s
c. Transfer for public use tax
d. Death benefits under Republic Act. 4917
70. Mr. Adelantado donated to his son a community
property. However, only Mr. Adelantado signed the
67. Which of the following is a donation to stranger for

m
deed of donation. For donor’s tax purposes, how many
donor’s tax purposes?

er as
donations were made?
a. Gift to an ancestor
a. One c. Four

co
b. Gift to a lineal descendant eH w b. Two d. none
c. Donation to a nephew
d. Donation to a sister company

o.
rs e
68. Mac has a 1-hectare property in Basilan. Since the **End of Exam**
ou urc

location of the land is known to be the area of

operation by the Abu Sayaff group, its value is
minimial. He donated the said property to Abu through
o

TAX TABLE
Individuals 1.1.18 – 12.31.22
aC s

Graduated Level Basic Tax Additional Tax

vi re

Not over P250,000 None None

Over P250,000 but not over P400,000 None 20% of excess over P250,000
y

Over P400,000 but not over P800,000 P 30,000 25% of excess over P400,000
ed d

Over P800,000 but not over P2,000,000 130,000 30% of excess over P800,000
ar stu

Over P2,000,000 but not over P8,000,000 490,000 32% of excess over P2,000,000

Over P8,000,000 2,410,000 35% of excess over P8,000,000

is
Th
sh

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