Since malapit na ang board exam, try ninyong i-solve ang problems para maassess kung handa ka nang mag-take ng CPA Board Exam this October. Solve these problems:
Last August 23, GFRIEND held its 2019 tour called “Go Go GFRIEND” at Manila:
- For income tax purposes, what will be the taxability of GFRIEND?
- Resident citizens
- Resident aliens
- Non-resident aliens engaged in business
- Non-resident aliens not engaged in trade or business.
- On what type GFRIEND will be subject to income tax, and who will withhold the tax due (if applicable)?
- Graduated tax rate or 8%, at GFRIEND’s option; Source Music
- Graduated tax rate; local promotion agency
- 25% of gross income; local promotion agency
- 25% of gross income; Source Music
Assume that Eunha is engaged in business of selling height-growth products in Philippines. These products are sold in a continuous basis. She only visits the country monthly or quarterly to check on status of business.
- For income tax purposes, what will be Eunha’s status? (Choose one)
- Resident citizen
- Resident alien
- Non-resident alien engaged in business
- Non-resident alien not engaged in trade or business.
- Assume that her products are VATable. Explain the tax effects of her products, assuming that she is VAT-registered:
- Input VAT
- Output VAT
Taxation Problem created by: TweetNewscaster