Question 1

Income payment to a domestic corporation on royalties derived from sources within the Philippines is
subject to 20% Expanded Withholding Tax (EWT).

a.
True
b.
False

Question 2
Casual or single purchase exceeding P10,000.00 made by government agency on the purchase of goods
is subject to 1% EWT.

a.
True
b.
False

Question 3
Income payment made by Top Withholding Agents on the services performed by regular employees for
his employer is subject to 2% EWT.

a.
True
b.
False

Question 4
R. A. 10963 (TRAIN Law) included Home Development Mutual Fund (Pag-ibig Fund) in the list of tax-
exempt GOCCs.

a.
True
b.
False

Question 5
Under R. A. 11534 (CREATE Law), any Non-VAT registered person, natural or juridical, rendering service to
a local government unit is subject to 3% withholding tax on Government Money Payment.

a.
True
b.
False

Question 6
Informer’s reward to person instrumental in the discovery of violators of the NIRC and the discovery and
seizure of smuggled goods is subject to 10% Final Withholding Tax (FWT).

a.
True
b.
False

Question 7
Gross selling price paid to the seller/owner for the sale, exchange or transfer of real property considered
as ordinary asset is subject to expanded withholding tax.

a.
True
b.
False

Question 8
On gross payment to the proprietor, lessee, or operator of amusement places such as cabarets, night
and day clubs, videoke and karaoke bars, karaoke televisions, karaoke boxes and music lounges is
subject to 20% FWT.

a.
True
b.
False

Question 9
The basis in computing expanded withholding tax to VAT registered supplier of goods and services is the
gross amount paid exclusive or net of VAT.

a.
True
b.
False

Question 10
The exemption from withholding tax on compensation shall apply only to mandatory/compulsory GSIS,
SSS, Medicare, and Pag-ibig contributions.

a.
True
b.
False

Question 11
Under TRAIN Law, prizes exceeding P10,000.00 and other winnings (including PCSO & lotto winnings) paid
to individual is subject to 20% expanded withholding tax.

a.
True
b.
False
Question 12
Under TRAIN Law, a married employee with 4 qualified dependents can claim personal and additional
exemption in the amount of P250,000.00.

a.
True
b.
False

Question 13
An employee with two or more employers concurrently or successively is qualified for substituted filing
and no longer need to file his/her own Income Tax Return (BIR Form No. 1700).

a.
True
b.
False

Question 14
Rental for the continued use or possession of real property used in business is subject to 5% EWT.

a.
True
b.
False

Question 15
Income payment to engineering contractors for the construction of building is subject to 2% EWT.

a.
True
b.
False

Question 16
Payment made by credit card company to any business entity representing the sale of goods of the said
business entity to cardholders is subject to 1% EWT based on the gross amount paid.

a.
True
b.
False

Question 17
Gross rental or lease of personal properties not exceeding P10,000.00 per annum is subject to 5% EWT.

a.
True
b.
False
Question 18
On the purchase of agricultural products on their original state by Top Withholding Agents not exceeding
P300,000.00 is subject to 1% EWT.

a.
True
b.
False

Question 19
Based on RR No. 11-2018, a minimum wage earner (MWE) will not enjoy the privilege of being a MWE if
he/she receives an income aside from salary, holiday pay, night differential pay, hazard pay and overtime
pay.

a.
True
b.
False

Question 20
Monetized value of vacation and sick leave credits of private employees not exceeding ten (10) days
during the year is part of de minimis benefits and not subject to withholding tax on compensation if the
13th month pay and other benefits exceeds the limit of P90,000.00.

a.
True
b.
False

Question 21
The obligation to deduct and withhold arises at the time an income payment is paid or payable and is
accrued or recorded as expense or asset, whichever is applicable to the payee’s, whichever comes first.

a.
True
b.
False

Question 22
Taxpayers who have already filed their tax returns online through facilities of eFPS and eBIRForms Offline
Package need not submit the hard copies to the Revenue District Offices where they are duly registered.

a.
True
b.
False

Question 23
Fees of directors who are employees of the company paying such fees, whose duties are confined to
attendance and participation in the meeting of the board of directors are subject to expanded
withholding tax.

a.
True
b.
False

Question 24
Income payment to Non-resident aliens engaged in trade or business in the Philippines on share in the
distributable net income after tax of a partnership of which he is a partner is subject to 20% FWT.

a.
True
b.
False

Question 25
Under TRAIN Law, the gross income of a Filipino individual who is employed and occupying the same
position as those of an alien engaged by foreign petroleum service contractors or contractors is subject
to 15% FWT.

a.
True
b.
False

Question 26
All remuneration for services performed by an employee for his employer under an employee-employer
relationship.

a.
Regular Compensation
b.
Supplemental Compensation
c.
Compensation
d.
De Minimis Benefits

Question 27
Benefits furnished or granted in cash or in kind by an employer to employee other than rank and file.

a.
Fringe Benefits
b.
De Minimis Benefits
c.
13th Month & Other Benefits
d.
Commissions

Question 28
Employee who works in private sector and being paid the Statutory Minimum Wage, as fixed by Regional
Tripartite Wage and Productivity Board/National Wages and Productivity Commission.

a.
Statutory Minimum Wage
b.
Minimum Wage Earner
c.
Job Order/Contract of Service
d.
Withholding Agent

Question 29
Any person or entity who is in control of the payment subject to withholding tax and therefore is required
to deduct and remit the taxes withheld to government.

a.
Withholding Agent
b.
Payee
c.
Employee
d.
None of the above

Question 30
Includes payment to an employee in addition to the regular compensation.

a.
Regular Compensation
b.
Supplemental Compensation
c.
Mandatory Contributions
d.
Clothing Allowance

Question 31
Tax imposed and prescribed on the items of income payable to the natural or juridical persons, residing
in the Philippines, by a payer-corporation/person which shall be credited against the income tax liability
of the taxpayer for the taxable year.
a.
Final Withholding Tax
b.
Government Money Payment
c.
Percentage Tax
d.
Expanded Withholding Tax

Question 32
The following are “De Minimis Benefits” except:

a.
Rice Allowance
b.
Clothing Allowance
c.
Employees achievement awards in the form of intangible personal property
d.
Gifts given during Christmas and major anniversary celebrations

Question 33
Amount of income tax withheld by the withholding agent constituted as a full and final payment of the
income tax due from the payee

a.
Withholding Tax on Compensation
b.
Government Money Payment
c.
Final Withholding Tax
d.
Expanded Withholding Tax

Question 34
The following are not qualified for substituted filing and required to file their BIR Form 1700, except:

a.
MWE as defined by RR No. 8-2018
b.
Individuals deriving compensation from two or more employers
c.
Individual whose income tax has not been withheld correctly
d.
None of the above
Question 35
The EWT rate for gross rental or lease which does not exceed Ten Thousand Pesos (10,000.000) annually
for the continued use or possession of personal properties used in business.

a.
5%
b.
2%
c.
10%
d.
None of the above

Question 36
Deadline for submission of Certificate of Compensation and Tax Withheld (BIR Form 2316)

a.
January 31 of the succeeding year
b.
February 28 of the succeeding year
c.
March 1 of the succeeding year
d.
None of the above

Question 37
The withholding tax rate for an individual payee who did not submit any sworn declaration.

a.
5%
b.
15%
c.
2%
d.
10%

Question 38
The following are required to withhold the 1% and 2% creditable withholding tax on goods and services,
respectively, except:

a.
Top Withholding Agents
b.
National Government Agency
c.
TAMP Taxpayers
d.
Government-Owned or Controlled Corporations

Question 39
Threshold for rice subsidy per annum:

a.
2,000.00
b.
24,000.00
c.
18,000.00
d.
1,500.00

Question 40
The EWT rate for income payments by a general professional partnership to its partners whose gross
income for the current year exceeds to 720,000.00:

a.
10%
b.
5%
c.
15%
d.
None of the above
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Problem Solving:
Use the the following data for the next three questions.
Mr. Alfonso, a married individual with two (2) qualified dependent children received P35,000.00 as
regular monthly salary. He also received monthly PERA and one (1) sack of rice in the amount of
P2,000.00 and P3,000.00 respectively. During the month of February 2018, he received his clothing
allowance of P6,000.00. Other information are as follows:

1.
a. His monthly contribution to GSIS– P500.00; Philhealth-P375.00;
and Pag-ibig-P100.00
b. For the month of December, Mr. Alfonso received P90,000.00
representing his 13th month pay & other benefits.
c. For the same month of December, Mr. Alfonso also submitted
to his employer paid receipts & documents pertaining to his
payments for Health & Hospitalization Insurance Premium in
the amount of P5,500.00
d. Assuming there was no salary increase for Mr. Alfonso during
the year.

2923*11 = 32,153

35,075 - 32, 153 = 2922

Question 41
The monthly withholding tax due of Mr. Alfonso (3pts)

a.
2,916.00
b.
2,679.50
c.
2,923.00
d.
2,833.75

Monthly

Salary 35,000.00

PERA 2,000.00

Rice 3,000.00

Clothing 6,000.00
 Total Gross Compensation 46,000.00
Less Non Taxable

Mandatory 975.00

Clothing 6,000.00

PERA 2,000.00

Rice 2,000.00

10,975.00

Taxable Compensation 35,025.00

-
range 33,333.00

1,692.00

rate 25% 423.00

Fixed amount 2,500.00

Withholding tax 2,923.00

Question 42
Mr. Alfonso income tax due for the year. (3pts)

a.
35,075.00
b.
34,922.00
c.
34,005.00
d.
32,154.00

For the Year

420,000.00
24,000.00
36,000.00
6,000.00

486,000.00

11,700.00
 6,000.00
24,000.00
24,000.00

65,700.00

420,300.00
-
400,000.00

20,300.00

25% 5,075.00

30,000.00

35,075.00

Question 43
The withholding tax due for the month December as a result of year-end adjustment. (3pts)

a.
2,679.50
b.
2,833.75
c.
2,846.00
d.
2,922.00

Year end Adjustment

Monthly withheld 11 months 32,153.00

W/tax for the Year 35,075.00

December - Year end adjustment 2,922.00

Question 44
Mr. Lorenzo is a Minimum Wage Earner employed in MOMD Corporation. For the year 2018, he received
the total amount of P265,000.00 as statutory minimum wage and overtime pay. He also received holiday
pay of P17,000.00 and commission amounting to P50,000.00 from the same employer. Using the new tax
rates, how much is the tax due of Mr. Lorenzo. (3pts)

a.
10,000.00
b.
16,400.00
c.
6,400.00
d.
None of the above

problem 2
Minimum wage Earner no withholding
tax

Question 45
Last year, Mr. Joseph was assigned in the Philippines as manager of regional operating headquarters of a
multinational company, aside from his salary he received fringe benefit in the amount of P65,000.00.
Compute the withholding tax due to be remitted by his employer. (3pts)

a.
35,000.00
b.
22,750.00
c.
25,000.00
d.
30,000.00

problem 3
Resident Citizen Employed in a ROH
subject to compensation within and without

Fringe Benefit given 65,000.00

grossed up rate 65%

100,000.00
FBT 35%

wtax 35,000.00

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Use the following data for the next two questions.
Phil. Dairy Corporation, a Government Owned and Controlled Corporation (GOCC) was billed by his lessor
ABC Corporation, with several payors for the month of January, 2020, representing monthly rental of
office space as follows:

Monthly rental P100,000.00

12% VAT 12,000.00
Total P112,000.00
Compute the withholding tax due to be withheld by Phil. Dairy Corp.

Question 46
Compute the withholding tax due to be withheld by Phil. Dairy Corp.
Expanded Withholding Tax (3pts)

a.
5,000.00
b.
2,000.00
c.
11,200.00
d.
5,600.00

problem 4
GOCC required to withhold 5% for VAT

Monthly Rental 100,000.00

5%
withholding 5,000.00

5% VAT 5,000.00

Question 47
Compute the withholding tax due to be withheld by Phil. Dairy Corp.
Government Money Payment (3pts)

a.
5,600.00
b.
5,000.00
c.
2,000.00
d.
12,000.00

Question 48
XYZ Company, a Top Withholding Agent purchase various office supplies to BDO Marketing in the amount
of P224,000.00 (inclusive of VAT). Compute the withholding tax due to be withheld by XYZ Company.
(3pts)

a.
2,240.00
b.
4,000.00
c.
2,000.00
d.
4,480.00

problem 5

224,000.0
XYZ 0 inclusive of VAT

200,000.0
tax base 0 exclusive of VAT
EWT Goods Rate 1%

EWT 2,000.00

Question 49
Mr. Regalado was hired as a courier by G.O.D. Collection Services, Inc., under a Contract for Service for
one (1) year, with payment on the basis of the number of letters/notices delivered. In the past years, Mr.
Regalado’s gross receipts from the said company never exceeded ₱250,000. In 2018, his gross receipts
amounted to ₱230,000 and provided G.O.D. Collection Services, Inc. the payee’s sworn declaration of
income. How much is the withholding tax to be withheld by G.O.D. Collection Services, Inc? (3pts)

a.
11,500.00
b.
23,000.00
c.
4,600.00
d.
Zero

problem 6
Submitted sworn declaration of
income
zero - withholding
Question 50
Ms. Crisostomo is employed in WTD Corporation. She received the SMW for 2018 in the total amount of
₱175,000, inclusive of the 13th month pay. In the same year, she also received overtime pay of ₱40,000
and nightshift differential of ₱25,000. She also received commission income from ABC Company of
₱20,000.00, thus, total income received amounted to ₱260,000. She failed to execute the payee’s sworn
declaration of income. Compute the withholding tax to be withheld by ABC Company. (3pts.)

a.
3,000.00
b.
2,000.00
c.
1,000.00
d.
Zero

problem 7
SMW with commission failed to submit sworn
declaration

10% of Commission 20,000.00

10%

withholding tax 2,000.00

Question 51
The amount of tax-exempt 13th month and other benefits is 90,000.00. (2pts)

a.
bonus
b.
bonus