question archive 20) Only the salary received by a Statutory Minimum wage earner is non-taxable but his income from business is taxable
20) Only the salary received by a Statutory Minimum wage earner is non-taxable but his income from business is taxable
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20) Only the salary received by a Statutory Minimum wage earner is non-taxable but his income from business is taxable. TEST || - MULTIPLE CHOICE 21. The following are the requirements to exempt retirement pay due to old age from taxation except: a. b. C. d. SSS or GSIS retirement pays. Equitable retirement program approved by the BIR Commissioner. The retiree should have been employed for at least 10 years and retiring at the age of at least 50 years old. Retirement pay should have been availed of for the first time. 22. Which of the following is classifiable as a taxable separation pay? e—ee'sn Separation pay due to optional retirement Separation pay due to reorganization of the company Separation pay due to company's brink of bankruptcy Separation pay due to death, sickness or disability 23. All of the following are income within, except 24 25. 26. 27. 28 a b. c d dividends declared by domestic corporation. salaries earned by filipino overseas contract workers. interest on bonds issued by domestic corporation. income from business located in the Philippines. . Which of the following is considered as taxable compensation income? a. b. Transportation allowance regularly received by a rank and file employee SSS benefits c.Retirement benefit under BIR approved retirement plan d. Retrenchment pay Compensation income is earned when an employer-employee relationship exists. Which of the following represents compensation income? a.Honorarium of the company lawyer as guest speaker in company sponsored seminar b. Emergency pay c.Sick leave with pay d. a. b. All of the above. Which of the following is not a compensation income? Retirement pay c. Wages Allowances d. Professional fees Which of the following is not taxable? a. P2,500 for 10 days sick leaves actually taken b. P1,250 for 5 days unused vacation leave converted into cash c. P1 ,000 for unused vacation leave received as part of separation pay due to voluntary resignation d. P500 vacation leave included as part of salary . Which of the following cases is retirement benefit excluded from taxable income? a. The retiree is 45 years of age and has been in the service for more than 20 years. b. The retiree is 50 years of age and has been in the service for lesser than 10 years. C. The retiree is more than 50 years of age and has been in the service of the same employer 2
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amended, otherwise known as the National Internal Revenue Code of 1997, is hereby further amended by adding the following definition after Subsection (FF) to read as follows: "SEC. 22. Definitions. ~ When used in this Title: 2/8 "(A) XXX. "XXX . "(FF) XXX. "(GG) The term 'statutory minimum wage' shall refer to the rate fixed by the Regional Tripartite Wage and Productivity Board, as defined by the Bureau of Labor and Employment Statistics (BLES) of the Department of Labor and Employment (DOLE). "(HH) The term 'minimum wage earner' shall refer to a worker in the private sector paid the statutory minimum wage, or to an employee in the public sector with compensation income of not more than the statutory minimum wage in the non- agricultural sector where he/she is assigned." SEC. 2. Section 24(A) of Republic Act No. 8424, as amended, otherwise known as the National Internal Revenue Code of 1997, is hereby further amended to read as follows: "SEC. 24. Income Tax Rates. ~ "(A) Rates of Income Tax on Individual Citizen and Individual Resident Alien of the Philippines. - "(1) x X X: "x x x; and "(c) On the taxable income defined in Section 31 of this Code, other than income subject to tax under Subsections (B), (C) and (D) of this Section, derived for each taxable year from all sources within the Philippines by an individual alien who is a resident of the Philippines.
