Commercial-in-Confidence

1. Statement 1 - Republic Act No. 10693 pertains to the “Tax Reform for Acceleration and
Inclusion (TRAIN) Law”
Statement 2 - The net estate of every decedent, whether resident or non-resident of
the Philippines, as determined in accordance with the NIRC, shall be subject to an
estate tax at the rate of six percent (6%).
Statement 1 Statement 2
a. True True
b. True False
c. False True
d. False False
2. Statement 1 - Gross estate of residents and citizens decedent generally include all
properties, real or personal, tangible or intangible, wherever situated.
Statement 2 - Gross estate of non-resident aliens include only properties situated
in the Philippines provided, that, with respect to intangible personal property,
its inclusion in the gross estate is subject to the rule of reciprocity.
Statement 1 Statement 2
a. True True
b. True False
c. False True
d. False False
3. Statement 1 - The properties comprising the gross estate shall be valued according
to their fair market value as of the time of decedent’s death
Statement 2 – In year 2028, If the property is a real property, the appraised
value thereof as of the time of death shall be, whichever is the higher of the
fair market value as determined by the Commissioner, or the fair market value as
shown in the schedule of values fixed by the provincial and city assessors,
whichever is higher.
Statement 1 Statement 2
a. True True
b. True False
c. False True
d. False False
4. Under the TRAIN law, the value of the net estate of a citizen or resident alien of
the Philippines shall be determined by deducting from the value of the gross
estate the following deduction except:
a. Claims of the deceased against insolvent persons as defined under R.A.
10142 (“The Financial Rehabilitation and Insolvency Act (FRIA) of 2010”)
and other existing laws, whether the value of the decedent’s interest
therein is included or not in the value of the gross estate.
b. Unpaid mortgages, taxes and casualty losses.
c. Unpaid mortgages upon, or any indebtedness in respect to, property where
the value of the decedent’s interest therein, undiminished by such
mortgage or indebtedness, is included in the value of the gross estate.
d. Taxes which have accrued as of the death of the decedent which were unpaid
as of the time of death.
5. Vanishing deductions is
1. an amount equal to the value any property forming part of the gross estate
situated in the Philippines of any person who died within five (5) years
prior to the death of the decedent
2. a deduction allowed only where a donor’s tax, or estate tax was finally
determined and paid by or on behalf of such donor, or the estate of such
prior decedent,
3. Is equal to one hundred percent (100%) of the value if the prior decedent
died within one (1) year prior to the death of the decedent, or if the
property was transferred to him by gift, within the same period prior to
his death.
4. Is equal to forty percent (40%) of the value, if the prior decedent died
more than three (3) years but not more than four (4) years prior to the
death of the decedent, or if the property was transferred to him by gift
within the same period prior to his death.
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a. Only one statement is true

b. Two statement are true
c. All statements are true
d. All statements are false

6. The amount of all bequests, legacies, devises or transfers to or for the use of
the Government of the Republic of the Philippines or any political subdivision
thereof, for exclusively public purposes.
a. Family home
b. Property previously taxed
c. Transfers for public use
d. Vanishing deduction

7. Which is not a condition for the allowance of family home as deduction from the
gross estate?
a. The family home must be the actual residential home of the decedent and
his family at the time of his death, as certified by the Barangay Captain
of the locality where the family home is situated.
b. The total value of the family home must be included as part of the gross
estate of the decedent.
c. Allowable deduction must be in an amount equivalent to the current fair
market value of the family home as declared or included in the gross
estate, or the extent of the decedent’s interest (whether
conjugal/community or exclusive property), whichever is lower, but not
exceeding P10,000,000.
d. There must be an actual and uninterrupted occupancy of the house or house
and lot as the family residence.

8. A non-resident alien decedent in the Philippines can deduct

a. Funeral expenses
b. Judicial expenses
c. Medical expenses
d. Transfers for public use

9. When the Commissioner finds that the payment of the estate tax or of any part
thereof would impose undue hardship upon the estate or any of the heirs, he may
extend the time for payment of such tax or any part thereof not to exceed
I - five (5) years in case the estate is settled through the courts,
II - two (2) years in case the estate is settled extrajudicially.
I II
a. True True
b. True False
c. False True
d. False False

10. The following real properties were owned by a decedent, head of family, who was a
Filipino citizen at the time of his death:
Vacation house, USA P2,000,000
Beach house, Bohol 1,500,000
House and lot (family home), Zambales 19,000,000
House and lot (dwelling places when in the city), Manila 2,500,000
How much should be included in and deducted from gross estate?
Amount to be included Family home deduction
a. P 9,500,000 P 9,500,000
b. P10,000,000 P10,000,000
c. P19,000,000 P10,000,000
d. P19,000,000 P19,000,000

11. Included in the gross estate of the decedent are the following except:
a. Dividends declared by a corporation before the death of stockholder of
which the decedent was still living on the date of record and paid after
death.
b. Share in partnership profits accruing before death but which are paid
after death of decedent partner;
c. Right of usufruct if transferable to the heirs.
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d. Proceeds of life insurance receivable by the wife of the decedent who is

irrevocably designated as beneficiary of the insurance.
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The next two (2) questions are based on the following data:

Mr. and Mrs. Reyes got married on August 3, 2024. They failed to have a pre-nuptial
agreement. Mr. Reyes died in January 2025. The following properties with their fair
market values, among others, were left behind:
Properties inherited by the decedent before the marriage P5,000,000
Properties received as donation by the surviving wife 3,000,000
before marriage
Properties inherited by the decedent during the marriage 1,000,000
Income from the properties inherited by the decedent 100,000
before the marriage
Income from properties inherited by the decedent during 200,000
the marriage
Properties acquired before the marriage by the decedent 500,000
who had legitimate descendants by a former marriage
You were engaged to assist the administrator in computing the gross estate of the
decedent.

12. How much were the total community properties?

a. P8,100,000 c. P5,100,000
b. P8,000,000 d. P5,000,000

13. How much were the total exclusive properties of the decedent?
a. P1,700,000 c. P1,200,000
b. P1,500,000 d. P1,000,000

The next three (3) questions are based on the following data:

A married non-resident alien, died on September 11,

2024. He left the following:
Conjugal properties, Philippines P 3,000,000
Exclusive properties, Philippines 2,000,000
Conjugal properties, Foreign Country 4,000,000
Exclusive properties, Foreign Country 1,000,000

The following deductions were claimed:

Actual funeral expenses 100,000
Judicial expenses 300,000
Claims against the conjugal estate 500,000
Claims against the exclusive estate 150,000
Transfer for public use 200,000
Medical expenses 600,000
Losses (part of exclusive properties in 100,000
the Philippines)

Included in the Philippine gross estate were the following:

Domestic shares P 600,000
Share in a partnership 300,000
Other tangible personal properties 2,100,000

The Philippine exclusive properties were all tangible personal properties. These
included a car, which was inherited 3 ½ years before the present decedent’s death,
and had a fair market value of P400,000. The foreign country where the decedent was
a citizen and a resident at the time of his death did not impose transfer taxes of
any character on the intangible personal properties of Filipinos not residing
therein.

14. How much was the vanishing deduction?

a. P200,693 c. P133,140
b. P133,795 d. None of the choices

15. How much was the total deductions from the conjugal gross estate in the Philippines?
a. P900,000 c. P369,000
b. P410,000 d. None of the choices

16. How much was the estate tax payable in the Philippines?
a. P182,213 c. P145,649
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b. P172,599 d. None of the choices

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17. The following are the requisites of a donation for purposes of the donor’s tax,
except one.
a. Capacity of the donor
b. Capacity of the donee
c. Delivery of the subject matter or gift
d. Donative intent

18. When is the donation perfected?

a. The moment the donor knows of the acceptance by the donee
b. The moment the thing donated is delivered, either actually or
constructively, to the donee
c. Upon payment of the donor’s tax
d. Upon execution of the deed of donation

19. Your bachelor client, a Filipino residing in Quezon City, wants to give his
girlfriend a gift of P400,000. He seeks your advice, for purposes of reducing if
not eliminating the donor’s tax on the gift, on whether it is better for him to
give all of the P400,000 on Christmas (December 25, 2021) or to give P200,000 on
Christmas and the other P200,000 on January 1, 2022.
Which of the following will be your advice?
a. Split the donation to totally relieve the donor from the donor’s tax.
b. Split the donation to reduce the donor’s tax.
c. Splitting the donation will not reduce the applicable donor’s tax.
d. The gift should be made on account of their planned marriage to avail of
dowry exemption.

20. On July 18, 2024, Mr. Dela Cruz gave a property with a fair market value of
P550,000 to Lester, a legitimate son, and Jennifer, Lester’s bride, on account of
their marriage celebrated on July 19, 2023. The donor’s tax payable is:
a. P87,100 c. P84,100
b. P38,000 d. P18,000

The next two (2) questions are based on the following data:
On February 25, 2022, Mr. and Mrs. Salomon donated their conjugal land worth P500,000 to
their three sons. One of them is getting married which prompted the donation.

On June 9, 2022, they also donated to the child of Mrs. Salomon by first marriage,
jewelry worth P75,000 on account of marriage more than a month after the donation.

Finally, on December 25, 2022, they donated to the nephew of Mr. Salomon a building worth
P750,000, 40% of which was co-owned by their Kumpare who agreed to the donation and
executed the necessary documents donating his share.

21. The donor’s tax due on the February 25 donation is:

a. P14,000 for Mr. & Mrs.
b. P3,600 each for Mr. & Mrs.
c. P4,000 each for Mr. & Mrs.
d. P0 for each spouse

22. The donor’s tax due on the December donation is:

a. Mr. – P9,875; Mrs. – P13,500
b. Mr. – P67,500; Mrs. – P67,500
c. Mr. – P13,500; Mrs. – P13,500
d. Mr. – P9,000; Mrs. – P67,500

23. During the current year, Mr. and Mrs. Caban, non-resident citizens, donated the
following:

Sept. 25: To Leona, a legitimate child, on account of marriage last month,

a conjugal property located in the Philippines, FMV, P600,000.

To Leo, nephew of Mr. Caban, on account of marriage, a property

located in USA exclusively owned by him with fair market value of
P150,000 (gift tax in USA, P5,000)
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Oct. 9: To Leonor, a legitimate child, conjugal property in the

Philippines with fair market value of P100,000.

How much is the gift tax payable on the October 9 gift of the husband?
a. P8,000 c. P7,100
b. P3,000 d. P2,500

24. Statement 1: Only one return shall be filed for several gifts (donations) made by
a donor to different donees on the same date.
Statement 2: If the donation involves conjugal/community property, each spouse
shall file separate return corresponding to his/her respective share in the
conjugal/community property.
a. True, False c. True, True
b. False, True d. False, False

25. The donation of an immovable property shall be made

a. In writing c. Either A or B
b. In public instrument d. Orally

26. When an indebtedness is cancelled without any service rendered by the debtor in
favor of the creditor, the forgiveness of debt will result to:
a. taxable income
b. distribution of dividend
c. taxable donation
d. taxable estate

27. Pedro sold to Juan (brother-in-law) his residential lot with a market value of
P1,000,000 for P600,000. Pedro bought the lot three years ago for P400,000. Juan
is financially capable of buying the lot. What tax should be imposed and
collected from Pedro as a result of the transaction?
a. Capital gains tax
b. Donor’s Tax
c. Real property Tax
d. Capital gains tax and Donor’s Tax

28. Statement 1 - Husband and wife are considered as separate and distinct taxpayer’s
for purposes of the donor’s tax.
Statement 2 - if what was donated is a conjugal or community property and only
the husband signed the deed of donation, there is only one donor for donor’s tax
purposes, without prejudice to the right of the wife to question the validity of
the donation without her consent pursuant to the pertinent provisions of the
Civil Code of the Philippines and the Family Code of the Philippines
Statement 1 Statement 2
a. True True
b. True False
c. False True
d. False False

29. Except in cases where the Commissioner otherwise permits, the return shall be
filed with
a. any authorized agent bank
b. Revenue District Office through Revenue Collection Officer
c. authorized tax software provider
d. All of the above

30. When is last day to file the donor’s tax return and pay the donor’s tax for August
15, 2024 donation?
a. August 15, 2024
b. August 31, 2024
c. September 14, 2024
d. October 14, 2024
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31. Sale of food and soft drink by a restaurant is:

a. a sale of good subject to VAT.
b. a sale of service subject to VAT.
c. a sale of both good and service subject to VAT.
d. not subject to value-added tax.

32. A VAT-registered store owner sells different appliances that are subject to VAT.
He is currently renovating his store and decided to replace a store equipment
with new ones. The store equipment was sold. The sale of store equipment is:
a. not subject to VAT because he is not a dealer of a store equipment.
b. subject to VAT because the sale of store equipment falls under the definition
of “in the course of trade or business”.
c. not subject to VAT because the store equipment may be fully depreciated.
d. subject to VAT because he is considered a dealer of store equipment.

33. (Adapted) In case where output tax is greater than the input tax, the difference
will be recognized as a:
a. current liability.
b. current asset.
c. deductible expense.
d. miscellaneous income.

34. A VAT-registered lessor of condominium units has the following gross rentals for
the first quarter of the current year:
Gross rentals of 20 units at P10,000 per month per unit P2,400,000
Gross rentals of 5 units at P15,500 per month per unit 930,000
Total P3,330,000

The VAT-registered lessor of condominium units shall be:

a. subject to VAT on his gross rentals of P3,330,000.
b. subject to VAT on his gross rentals of P930,000.
c. subject to VAT on his gross rentals of P2,400,000
d. exempt from VAT on his total gross rentals.

35. The following are not creditable input tax, except

a. VAT on importation of goods for personal use
b. VAT on unpaid bill on services rendered by a VAT-registered service-
provider evidenced by an unofficial invoice
c. VAT on purchase on account of goods evidenced by a VAT invoice
d. VAT on purchase of laptop for use in the residential house of a VAT-
registered person

36. The following is allowed a presumptive input tax, except

a. Manufacturer of refined sugar
b. Manufacturer of packed noodle based instant meal
c. Processor of milk
d. Processor of tuna

37. The quarterly VAT return is filed:

a. Within twenty (20) days following the end of the quarter.
b. Within twenty-five (25) days following the end of the quarter.
c. Within sixty (60) days following the end of the quarter.
d. When the VAT payable is finally determined.

38. (Adapted) During the month of March, 2024, the following acquisitions of
properties happened and were recorded in the books of a VAT-registered taxpayer:
Purchase of four (4) store equipment at P250,000 each
Purchase of four (4) office computer at P50,000 each
Importation of a car to be used in business, P2,500,000
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Based on the above data:

a. The total input taxes on the above transactions shall be amortized.
b. The input tax on store equipment and office computer shall be credited in
full and Only the VAT on importation of car shall be amortized.
c. The total input taxes on store equipment and office computer shall be
amortized Only the VAT on importation of car shall be amortized.
d. The total input taxes on the store equipment and office computer shall be
credited in full and the VAT on importation of car cannot be credited
against output taxes.

39. The exemption from VAT of educational services does not include:
a. seminars and review classes.
b. in-service training.
c. other similar services rendered by persons who are not accredited by
DepED, the CHED and/or the TESDA.
d. all of the choices.

40. Which of the following shall not be exempt from Value-Added Tax?
a. Services rendered by individual pursuant to an employer-employee
relationship.
b. Services rendered by regional or area headquarters established in the
Philippines by multinational corporations which act as supervisory,
communications and coordinating centers for their affiliates, subsidiaries
or branches in the Asia Pacific Region and do not earn or derive income
from the Philippines.
c. Transactions which are exempt under international agreements to which the
Philippines is a signatory or under special laws.
d. Services rendered by professionals such CPAs, engineers, lawyers, etc.

Macdinas is a processor of sardines and mackerel. It registered under the VAT system
on January 2, 2025 after his sales exceeded the VAT threshold amount in the previous
year. It had the following selected data in its books:

Inventory, December 31, 2024 purchased from VAT-registered seller:

Cost P600,000.00
Net realizable value 500,000.00
VAT paid on December 31, 2024 inventory 72,000.00
VAT-exempt Inventory, December 31, 2024 800,000.00

The following transactions recorded in his books during the first month of
2025 were:
Sales of canned sardines and mackerel, net of VAT P800,000.00
Purchases of fresh sardines 70,000.00
Purchases of onions, tomatoes, ginger and other spices 60,000.00
Purchases of labels and packaging materials, net of VAT 50,000.00
Bills from a trucking company for the delivery of canned
sardines and mackerel, net of VAT (only P10,000 was paid) 40,000.00

41. How much is the output tax?

a. P96,000.00
b. P85,714.28
c. P80,000.00
d. None of the choices

42. How much is the transitional input tax?

a. P72,000.00
b. P60,000.00
c. P10,000.00
d. None of the choices
43. How much is the presumptive input tax?
a. P15,600.00
b. P 5,200.00
c. P 2,400.00
d. None of the choices
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44. How much is the value-added tax payable?

a. P73,600.00
b. P23,600.00
c. P14,400.00
d. P10,800.00

45. John sold his apartment house to Samuel, his best friend, for P1,000,000. The
fair market value of the apartment house at the time of sale was P1,500,000.
Prior to the sale, the apartment house was being leased out by John to tenants.
How much was the output tax on the sale of the apartment house?
a. P180,000 c. P60,000
b. P150,000 d. Not subject to VAT

46. “A”, at the time of retirement, had 1,000 pieces of merchandise which was deemed
sold at a value of P20,000.00 with an output tax of P2,400.00. After retirement,
“A” sold to “B” 500 pieces of these for P12,000.00. In the contract of sale or
invoice, “A” stated the sales invoice number wherein the output tax on “deemed
sale” was imposed and the corresponding tax paid on the 500 pieces. He prepared
the following invoice:

Gross selling price P 10,000

VAT previously paid on “deemed sale” 1,200
Total P 11,200

How much is the input tax of “B”?

a. P2,400 c. P1,000
b. P1,200 d. None of the choices

47. All of the following, except one, are not subject to common carrier's tax
a. owner of a parking lot/building
b. rent-a-car companies
c. common carriers engaged in carriage of goods or cargo
d. domestic airline companies

48. Mr. D executed on January 1, 2019, a long-term loan from Bank C in the amount of
P6,000,000 payable within ten (10) years, with an annual interest of 2%. However,
on December 31, 2022, the loan was pre- terminated. Assuming Bank C declared
correctly the interest from 2019 to 3rd quarter of 2022 and the applicable gross
receipts taxes were paid, how much gross receipts tax should be paid for the 4th
Quarter of 2022?
a. P19,500 c. P19,700
b. P24,500 d. None of the choices

49. Paelo wants to procure fire insurance for his Mansion in Dasmarinas Village from
ABC Insurance Co., a non-resident foreign corp, through its agent in the
Philippines Mr. Webner. He paid premiums amounting to P5 million. How much is the
premiums tax payable on the transaction?
a. P500,000 c. P100,000
b. P200,000 d. None of the choices

50. Using the same information above, assuming Paelo directly obtained the insurance
policy from ABC Insurance Co., how much is the premiums tax payable on the
transaction?
a. P500,000 c. P100,000
b. P250,000 d. None of the choices

51. Moon Telecom Inc. has the following collections for the month of April 2024:
Overseas call originating abroad 1,120,000
Overseas call originating in the Philippines 880,000
Local calls 2,240,000
How much is the overseas communication tax to be remitted by Moon for the month?
a. P220,000 c. P200,000
b. P88,000 d. P80,000
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52. Based on the preceding number, how much is the output tax?
a. P240,000 c. P360,000
b. P454,286 d. P268,800

53. (Adapted) One of the following is subject to the 3% percentage tax under Sec. 116:
a. Seller of bananas whose annual gross sales do not exceed the VAT threshold
amount
b. Seller of dried fish whose annual gross sales exceed the VAT threshold amount
c. Seller of furniture whose annual gross sales do not exceed the VAT
threshold amount
d. Seller of office supplies who is VAT-registered but whose gross annual
sales do not exceed the VAT threshold amount

54. (Adapted) Which of the following is not subject to franchise tax?

a. Franchise grantee of radio and/or television broadcasting whose gross
annual receipts of the preceding year does not exceed P10,000,000
b. Franchise grantees of gas and water utilities
c. PAGCOR and its licensees and franchisees
d. Franchise grantee of radio and/or television broadcasting whose gross
annual receipts of the preceding year exceed P10,000,000

55. (Adapted) Rentals of property, real or personal, received by bank and non-bank
financial intermediaries performing quasi-banking functions are:
a. subject to Value-added Tax at 12%.
b. subject to Gross Receipts Tax at 7%.
c. subject to Gross Receipts Tax if the annual gross rentals do not exceed
the VAT threshold amount.
d. not subject to any tax.

56. (Adapted) Which of the following is not subject to amusement tax?

a. Proprietor of videoke bars
b. Operator of cockpits
c. Lessee of bowling alleys
d. Lessee of jai-alai and racetracks

57. (Adapted)Sunshine operates a cockpit. Within the cockpit, she operates a

restaurant and has stalls for rent.
Data for the particular quarter follow:
Gross receipts (cockpit operation) P 500,000
Gross receipts (restaurant operation)
Sale of food 100,000
Sale of liquor 150,000
Gross rentals from stalls inside the cockpit 200,000

How much is the amusement tax due from Sunshine?

a. P171,000 c. P142,500
b. P151,650 d. P 90,000

58. (Adapted) Kanah has the following winnings from horse racing during a particular
race day:
Total trifecta winnings P10,000
Cost of tickets 500
How much is the tax to be withheld from the winnings?
a. P1,000 c. P400
b. P 950 d. P380
59. (Adapted) Serena invested P 500,000 in shares of stock in Manila Trading Corp.
The corporation’s shares were listed and were traded in the local stock exchange.
Serena sold her shares in the local stock exchange through her stockbroker for
P350,000.

How much was the percentage tax on the sale?

a. P42,000 c. P1,750
b. P 2,100 d. None
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60. Using the information in number 59, Assuming Serena sold the shares to Arman, a
direct buyer, how much was the percentage tax on the sale?
a. P42,000 c. P1,750
b. P 2,500 d. None

61. Which of the following is not subject to excise tax?

a. Cigars and cigarettes
b. Sweetened Beverages
c. purely electric vehicles
d. non-invasive cosmetic procedures

62. Chris married, had the following data for taxable year 2023:
Philippines Abroad
Business income P1,000,000 $20,000
Professional income 400,000 10,000
Salaries 200,000
Business and professional
Expenses 250,000 8,000
Income tax paid 4,000
NOTE: $1 = P50
If he is a resident citizen, his income tax payable is:
a. P789,000 c. P337,500
b. P570,500 d. P434,000

63. If he is a resident alien, his income tax payable is:

a. P360,580 c. P384,380
b. P240,000 d. P295,000

64. If he is a non-resident alien not engaged in trade or business, disregarding

professional and business data, the total income tax that should be withheld from
his income is:
a. P50,000 c. P31,500
b. P18,500 d. P338,500

65. Lorna, a minimum wage earner, works for Eddie, Incorporated. She earned
compensation income of P235,000 in 2024. Aside from her basic pay, she also
earned P140,000 consisting of P80,000 overtime pay, P30,000-night shift
differential, P15,000 hazard pay, and P15,000 holiday pay. She also contributed
to the SSS, Philhealth, and HDMF amounting to P5,000 and has received a 13th
month pay of P11,000. Lorna’s income tax due for the taxable year should be:
a. P1,800 c. P7,200
b. P3,600 d. P0

66. Ms. Ellena operates an online store. At the same time, she also offers
landscaping services to her clients. In 2024, her gross sales amounted to
P800,000, in addition to her receipts from landscaping services of P1,200,000.
She incurred cost of sales and operating expenses amounting to P600,000 and
P200,000, respectively. She already signified her intention to be taxed at 8%
income tax rate in her 1st quarter return. How much is the income tax liability
for the year?
a. P68,000 c. P160,000
b. P10,000 d. none of the choices

67. If PCSO winnings of P10,000 were received by a NRANETB, what type of income tax
will apply?
a. 25% Final withholding tax
b. Capital gains tax
c. Basic income tax
d. Exempt from tax

68. Foreign nationals or non-Filipino citizens, regardless of their residency, term

and class of working or employment permit or visa, who are employed and assigned
in the Philippines by an Offshore Gaming Licensee (OGL) or its Accredited Service
Provider shall have Taxpayer Identification Number (TIN) and shall be subject to
a:
a. final withholding tax of 25% on their gross income.
b. creditable withholding tax of 25% on their gross income.
c. final withholding tax of 20% on their gross income.
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d. creditable withholding tax of 10% on their gross income.

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69. If real property classified as capital asset is sold to the government or any of
its political subdivisions or agencies or GOCCs by an individual taxpayer, the tax
shall be:

Option I - 6% capital gains tax. Option

II - Section 24 (A).

a. Either of the options are correct

b. Neither of the options is correct
c. Only I is correct
d. Only II is correct

70. On January 2, 2024, an individual taxpayer, resident citizen, sold his

residential house for P3,000,000 (Cost P900,000, FMV, time of sale, P5,000,000).
He utilized only P1,000,000 of the proceeds to build a new principal residence
within 18 calendar months from the date of sale. He notified the BIR within 30
days from the date of sale of his intention. How much is the capital gains tax
due and payable and the basis of the new principal residence?
a. P300,000/P300,000 c. P180,000/P600,000
b. P200,000/P300,000 d. None/None

- END of EXAMINATION -

SEC. 24(2) Rates of Tax on Taxable Income of Individuals.

The tax
Over But not over shall be Plus Of excess over
250,000 - - -
250,000 400,000 - 15% P 250,000
400,000 800,000 22,50 20% 400,000
0
800,000 2,000,000 102,5 25% 800,000
0
0
2,000,0 8,000,000 402,5 30% 2,000,000
00 0
0
8,000,0 2,202 35% 8,000,000
00 ,
5
0
0
Commercial-in-Confidence