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    Rosemarie Cruz
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    Non-resident Foreign Corporation

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    40 views4 pages

    Non-Resident Foreign Corporation

    Uploaded by

    Rosemarie Cruz

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 4

    And if it is a non-resident foreign corporation and there is tax sparing, its income tax on all income is

    (disregard sale of condominium):


    a. P578.000 c. P396.000
    b. P384.750 d. P809.000

    ❖ 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

    Total Gross income - Phils, x Tax


    Rate

    Add: FWT on DI from DC @ 15%


    CGT on shares of DC @
    7.5% Total taxes on all income

    50,000 Passive income is subject to 30% FWT if the taxpayer is NRFC


    ~P1,210,000
    30%
    P363.000
    10,500
    11,250
    P384.750

    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:

    Gross sales Philippines Abroad Total


    Sales returns P10,000,000 P5,000,000 P15000000
    Cost of goods sold (200,000) (200.000)
    Operating expenses
    (3.500.000) (2.250.000) (5.750.000)
    Interest income from trade receivable (2.800.000) (1.100.000) (3.900.000)
    Interest income from BPI deposits-USA
    100.000 50.000 150,000
    Interest income from money market
    placement
    • 90.000 80.000
    Dnndend mcome-RFC 100.000 100.000
    Drvrdend mcome-NRFC
    Royalty income abroad 45,000 45.000
    Taxable income RCIT rate • 30.000 30.000
    Corporate Incoma Tax Duo • 25.000 25OX,
    P5.590.000

    "J
    ™*

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