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Non-Resident Foreign Corporation
Non-Resident Foreign Corporation
❖ Answer: B
Phils.
Gross income, Phil. P1.000.000
Interest from receivables in the 60,000
Philippines
Rent Income, land in USA
Rent income, Building in the 100,000
Philippines
Royalty, Philippines
0 The tax rates for foreign corporations were not amended under the TRAIN Law. Consequently, the old CGT rates of 5%
and 10% shall be applied 0 CGT On shares = P150,000 x 7.5% = P11,250
Co^OraiuNts
data for the next four (4) Questions:
were taken tram the financial statement of Chen Corporation for 2018
Philippines Abroad
Grass sales
P10,000.000 P5.000.000
Sales returns
200.000
Cost of goods sold
3.500.000 2.250,000
Operating expenses
2.800,000 1.100.000
Interest income from trade receivable
100.000 50,000
Interest income from BPI deposits-Phils.
100,000
Interest income from BPI deposits-USA
- 80,000
interest income- FCDU
150.000 >
Income from money market placement
200,000 100,000
Dividend income from domestic corporation
75,000 -
Dividend income from resident corporation
45,000 -
Dividend income from nonresident corporation 30,000
-
Royalty income - in general
30,000 25.000
Royalty income - books
20,000 -
Gain on sale of shares of stock of domestic corp, held as capital -
asset thru local stock exchange; Selling Price-P500,000 120,000
Gain on sale of shares of stock of domestic corp, held as capital
asset directly to a buyer Selling Price- P650.000
150,000
Sale of real property in the Philippines not used in 5,000,000
business. Cost-P4M; FMV-P8M
69. How much is the income tax due and payable assuming the corporation is:
DC RFC
a. P1,674,00 . P2,038,500
b. P2,038,500 P1,093,500
c. P1,674,000 P1,093,500
d. P1,093,500 P1.674.000
❖ Answer: C
Domestic Corporation:
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