1. Statement 1: An excise tax is a tax imposed on specific goods or c.

Importer or owner of imported articles

services such as tobacco, fuel and alcohol d. None of the above
Statement 2: Excise Tax is a tax on the production, sale or consumption of
a commodity in a country. including certain services. 10. Which of the following persons is not liable for excise tax?
a. Only statement 1 is correct a. Person who is found in possession of articles which are exempt from
b. Only statement 2 is correct excise taxes on imported articles other than those legally entitled to
c. Both statements are correct exemption
d. Both statements are incorrect b. First buyer, purchaser or transferee on local sale, barter or transfer of
indigenous petroleum, natural gas or liquefied natural gas
2. Excise tax is imposed on: c. Owner, lessee, concessionaire or operator of the mining claim on
a. Certain goods manufactured or produced in the Philippines for exportation of indigenous petroleum, natural gas or liquefied natural gas
domestic sale or consumption or for any other disposition d. None of the above
b. Certain goods imported
a. Certain services performed in the Philippines 11. Assume that in 2022, there was a removal of 50 cases of Heated
d. All of the above Tobacco Product from place of production in which 1 case contains 50
reams while 1 ream contains 10 packs. How much is the excise tax due
3. Excise tax shall be paid by assuming the taxable year is 2022?
a. The manufacturer or producer of excisable product a. P687,500
b. The seller of distributor of excisable product b. P750,000
c. The buyer or consumer of excisable product c. P812,500
d. None of the above d. P853,125

4. Unless expressly provided by law or regulations, the payment of excise 12. Assume that in 2022, there was a removal of 50 cases of Heated
tax due shall be made Tobacco Product from place of production in which 1 case contains 50
a. Before removal of domestic products from place of production reams while 1 ream contains 10 packs. How much is the inspection fee
b. Ten (10) days after removal of domestic products from place of assuming the taxable year is 2022?
production a. P10.00
c. Fifteen (15) days after removal of domestic products from place of b. P25.00
production c. P50.00
d. Thirty (30) days after removal of domestic products from place of d. P100,00
production
13. How much is the correct excise tax of Nicotine Salt or Salt Nicotine
5. It refers to the excise tax imposed which is based on weight or volume with volume content of 1.9 ml, 500 packs of vapor products with 2 pods
capacity or any other physical unit of measurement. per pack?
a. Ad valorem lax a. P60,000
b. Specific tax b. P74,000
c. Value added tax c. P84,000
d. None of the above d. P94,000

6. It refers to the excise tax imposed which is based on selling price or 14. How much is the correct inspection fee in the preceding number?
other specified value of the goods/articles. a. P19.00
a. Ad valorem tax b. P20.00
b. Specific tax c. P21.00
c. Value added tax d. P25.00
d. None of the above
Shares of stock Alpha Corporation, a newly formed corporation organized
7. Which of the following is the correct formula in computing specific tax? under Philippine laws, issued on March 8, 2021 shares of stocks to one of
a. Specific Tax Selling Price of any specific value per unit x Ad Valorem Tax its incorporators, Mr. Dela Cruz, for P250,000. The par value of the shares
Rate issued is P200,000.
b. Specific Tax No. of Units or other measurements x Ad Valorem Tax Rate
c. Specific Tax No. of Units or other measurements x Specific Tax Rate 15. How much is the documentary stamp tax due?
d. Specific Tax No. of Units or other measurements x Selling Price of any 16. How much is the documentary stamp tax due assuming the shares are
specific value per unit x Specific Tax Rate without par value?
17. If the shares (with par value) were subsequently sold by Mr. Dela Cruz
8. Which of the following is the correct formula in computing ad valorem for P400,000, how much is the documentary stamp tax due?
tax? 18. If the shares (without par value) were subsequently sold by Mr. Dela
a. Ad Valorem Tax = Selling Price x Ad Valorem Tax Rate Cruz for P400,000, how much is the documentary stamp tax due?
b. Ad Valorem Tax = No. of Units or other measurements x Ad Valorem
Tax Rate Pedro sold one of his vacant lots in his hometown in Pampanga acquired
c. Ad Valorem Tax = No. of Units or other measurements x Specific Tax by him five years ago for P6,000,000. He sold the same to Juan for
Rate 5 P15,000,000, equivalent to the fair market value at the time of sale.
d. Ad Valorem Tax No. of Units or other measurements x Selling Price of
any specific value per unit x Specific Tax Rate 19. How much is the documentary stamp tax due?

9. Which of the following persons is not liable for excise tax? 20. _____ refers to any Filipino citizen who is a resident of the Philippines
a. Manufacturer or producer of domestic or local articles and who is sixty (60) years old or above.
b. Owner or person having possession of articles removed from the place a. persons with disability
of production without the payment of the tax of domestic or local articles b. senior citizens
c. benefactor c. Only statement 3 is incorrect
d. self-employed d. None of the statements is correct

21. Statement 1. A resident citizen in the preceding number shall refer to 27. If the returnable income of a PWD is in the nature of compensation
a Filipino citizen with permanent/legal residence in the Philippines, and income and he qualifies as a minimum wage earner (MWE), he shall be
shall include one, who, having migrated to a foreign country, has exempt from income tax. This income tax exemption is a/an
returned to the Philippines with a definite intention to reside therein, and a. Tax privilege granted only to PWDs
whose immigrant visa has been surrendered to the foreign government. b. Exemption which will be lost if the PWD loses his status as PWD.
c. Privilege that will not extend to a PWD with dual citizenship status.
Statement 2. A senior citizen referred to in the preceding number may d. General income tax exemption without regard to the status of the
apply to senior citizens with dual citizenship status provided they prove taxpayer
their Filipino citizenship and have at least six (6) months residency in the
Philippines. 28. Statement 1: If a taxpayer, classified as PWD, is unable to make his
own return, the return may be made by his duly authorized agent or
a. Statements 1 and 2 are false representative or by the guardian or other person charged with the care
b. Statement 1 is true but statement 2 is false of his person or property.
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true Statement 2. The principal (PWD) and his representative or guardian shall
assume the responsibility of making the return and incurring penalties
22. ______ are those who have long-term physical, mental, intellectual or provided for erroneous, false, fraudulent returns.
sensory impairments which in interaction with various barriers may
hinder their full and effective participation in society on an equal basis Statement 3: The privilege in statement 1 and transfer of responsibility in
with others. statement 2 is likewise available to a senior citizen, if he is under some
a. persons with disability form of disability and unable to make his own return.
b. senior citizens
c. benefactor a. Only statement 1 is correct
d. self-employed b. Only statement 2 is correct
c. Only statement 3 is incorrect
23. Which of the following statements is correct? d. None of the statements is incorrect
a. Double discount to a PWD/SC is not allowed.
b. PWDs/SCs will have the option to choose either promotional/other 29. Which of the following statements is correct?
forms of discounts or the PWD discount provided that only the PWD a. The sales discount granted to a SC or PWD shall be treated as ordinary
discount is exempted from vat. and necessary expense duly deductible from the gross income of the
c. In case that the PWD is also a SC, the PWD may opt to use either the SC seller falling under the category of itemized deductions.
or PWD discount b. The sales discount shall not be accounted as deductible expense for
d. All of the above taxpayers availing the Optional Standard Deduction (OSD)
c. The sales discount shall only be allowed as itemized deduction from
24. Statement 1: While the 20% senior citizen discount and vat exemption gross income for the same taxable year that the discount is granted.
shall not apply to "children's meals as these are primarily prepared and d. All of the above
intentionally marketed for children, if the PWD is a child, the 20% PWD
discount will be applicable as long as it is for his personal consumption. Tax Incentives under Title XIII of the Tax Code, as amended by CREATE Act
Statement 2. The 20% discount on purchase of food and drinks,
beverages, dessert and other consumable items served by establishments 30. _______ refer to government entities created by law, executive order,
includes value meals and other similar food counters, fast food, cooked decree or other issuance, in charge of promoting investments, granting
food and short orders including take outs. and administering lax and non-ta incentives, and overseeing the
a. Statements 1 and 2 are false operations of the different economic zones and Freeport in accordance
b. Statement 1 is true but statement 2 is false with their respective special laws.
c. Statement 1 is false but statement 2 is true a Investment Promotion Agencies (IPAs)
d. Statements 1 and 2 are true b. Registered Business Enterprises (RBES)
c. Strategic Investment Priority Plan (SIPP)
25. Which of the following statements regarding discounts allowed to d. Fiscal Incentives Review Board (FIRB)
PWDs is incorrect?
a. In case the seller provides promotional discounts, the PWD will have 31. ______ refers to the plan prepared by the Bureau of Investment
the option to choose either the promotional discount or the PWD (BOI) coordination with the Fiscal Incentives Review Board (FIRB),
discount. Investment Promotion Agency (IPA) and Other Government Agencies
b. Only the PWD discount is exempted from vat. (OGAs) administering tax incentives, and the private sector, which is
c. In cases where the PWD is also a senior citizen (SC), the PWD shall also approved by the President, and contains the priority projects or activities,
be entitled to SC C discount in order to maximize the discounts granted scope and coverage of location and Industry Tiers, recommendations for
under Magna Carta for PWDs and SCs. non-fiscal support and corresponding specific activities wherein
d. None of the above. investments are to be encouraged, and other information, analyses,
data,guidelines, or criteria, as the BOI may deem appropriate
26. Statement 1: The 5% discounts on electric and water consumption of a. Investment Promotion Agencies (IPAs)
senior citizens also provides vat exemption. b. Registered Business Enterprises (RBES)
Statement 2. The vat exemption granted to Senior Citizens (SCs) and c. Strategic Investment Priority Plan (SIPP)
PWDs will not cover other indirect taxes that may be passed on by the d. Fiscal Incentives Review Board (FIRB)
seller to a SC/PWD buyer, such as percentage tax, excise tax, etc.
a. Only statement 1 is correct 32. The Strategic Investment Priority Plan (SIPP) shall be submitted to the
b. Only statement 2 is correct President for the approval and shall be valid for a period of
a. 2 years a. Before ITH period
b. 3 years b. After ITH period
c. 5 years c. Simultaneously with ITH
d. 10 years d. Not entitled to SCIT

33. ______ refers to any individual, partnership, corporation, Philippine 40. Statement 1: After the ITH period, a Registered Export Enterprises
branch of a foreign corporation, or other entity organized and existing (REE) may choose to avail either SCIT rate of 5% or Enhanced Deduction
under Philippine laws and registered with an investment promotion (ED).
agency excluding service enterprises such as those engaged in customs Statement 2: After the ITH period, a Domestic Market Enterprise may
brokerage, trucking or forwarding services, janitorial services, security choose to avari either SCIT rate of 5% or Enhanced Deduction (ED)
services, insurance, banking, and other financial services, consumers' a. Only Statement 1 is correct
cooperatives, credit unions, consultancy services, retail enterprises, b. Only Statement 2 is correct
restaurants, or such other similar services, as may be determined by the c. Both Statements are correct
FIRB, irrespective of location, whether inside or outside the zones, duly d. Both Statements are incorrect
accredited or licensed by any of the investment promotion agencies and
whose income delivered within the economic zones shall be subject to 41. Enhanced Deduction (ED) may be availed by a Registered Export
taxes under the national internal revenue code of 1997, as amended. Enterprise (REE) for a period of
a. Investment Promotion Agencies (IPAs) a. 2 years
b. Registered Business Enterprises (RBES) b. 3 years
c. Strategic Investment Priority Plan (SIPP) c. 5 years
d. Fiscal Incentives Review Board (FIRB) d. 10 years

34. _______ refers to any individual, partnership, corporation, Philippine 42. Enhanced Deduction (ED) may be availed by a Domestic Market
branch of a foreign corporation, or other entity organized and existing Enterprise for a period of
under Philippine laws and registered with an Investment Promotion a. 2 years
Agency (IPA) to engage in manufacturing, assembling or processing b. 3 years
activity, and services such as information technology (IT) activities and c. 5 years
business process outsourcing (BPO), and resulting in the direct d. 10 years
exportation, and/or sale of its manufactured, assembled or processed
product or IT/BPO services to another registered export enterprise that 43. Special Corporate Income Tax (SCIT) may be availed by a Registered
will form part of the final export product or export service of the latter, of Export Enterprise (REE) for a period of
at least seventy percent (70%) of its total production or output. a. 2 years
a. Registered Export Enterprise (REE) b. 3 years
b. Domestic Market Enterprise c. 5 years
c. Investment Promotion Agencies (IPAs) d. 10 years
d. Registered Business Enterprises (RBEs)
44. Enhanced Deduction (ED) may be availed by
35. Market Enterprise may be granted an Income Tax Holiday (ITH) for a a. Registered Export Enterprises
period of b. Domestic Market Enterprises
a. Three (3) years c. Both "a" and "b"
b. Four (4) years d. Neither 'a' nor "b"
c. Seven (7) years
d. Four (4) to seven (7) years depending on location and industry 45. This refers to a tax incentive at a tax rate equivalent to five percent
priorities (5%) effective July 1, 2020, based on the gross income earned of
registered business enterprises, in lieu of all national and local taxes.
36. Five percent (5%) Special Corporate Income Tax (SCIT) may be availed a. Income Tax Holiday (ITH)
by a Registered Export Enterprise (REE) b. Special Corporate Income Tax (SCIT)
a. Before ITH period c. Enhanced Deductions (ED)
b. After ITH period d. None of the above
c. Simultaneously with ITH
d. Either before or after ITH period

37. Five percent (5%) Special Corporate Income Tax (SCIT) may be availed
by a Domestic Market Enterprise
a. Before ITH period
b. After ITH period
c. Simultaneously with ITH
d. Not entitled to SCIT

38. Enhanced Deduction (ED) may be availed by a Registered Export

Enterprise (REE)
a. Before ITH period
b. After ITH period
c. Simultaneously with ITH
d. Either before or after ITH period

39. Enhanced Deduction (ED) may be availed by a Domestic Market

Enterprise