Scribd
Upload
137 views1 page

Floyd

Floyd, an American citizen, owns a building in the US that he leases to Filipino businesses. He lives in the Philippines with his Filipina wife and children who attend Philippine universities. The rental income would be exempt from Philippine taxes because Floyd is considered a non-resident alien under Philippine law and the income is derived from sources outside the Philippines.

Uploaded by

Katrina Dela Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
137 views1 page

Floyd

Floyd, an American citizen, owns a building in the US that he leases to Filipino businesses. He lives in the Philippines with his Filipina wife and children who attend Philippine universities. The rental income would be exempt from Philippine taxes because Floyd is considered a non-resident alien under Philippine law and the income is derived from sources outside the Philippines.

Uploaded by

Katrina Dela Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Floyd, an American citizen who is married to a beautiful Filipina owns a building in the United States and

leases the same to businesses owned by Filipino residents. Floyd has his residence in the Philippines and
all his children are studying in top Philippine universities. Which of the following statements is true
regarding the rental income?

a. Taxable in the Philippines because he had his residence in the Philippines.

b. Taxable in the Philippines because his wife is a resident citizen and they are all residents of the
Philippines.

c. Taxable in the Philippines because he derives his income from Filipino resident lessees.

d. Exempt in the Philippines because Floyd is resident alien. As such, he is taxable only on income
derived from

sources within the Philippines.

• Answer: D

Individual taxpayers are subject to the following income tax

I.Basic tax based on graduated tax table

II.Final withholding tax on passive income derived from source within the Philippines

III.Capital gains tax

IV.Stock transaction tax of 6/10 of 1% of gross selling price

a. I and II only C. I, II and III only

b. I and III only d. All of the above

• Answer: C

The stock transaction tax is not an income but a business tax under Sec. 127(A) NIRC

5. Who of the following individual taxpayers is taxable on income derived from within and without the
Philippines?

a. Pedro, a native of Bacolod City, working as overseas contract worker in Iraq.

b. George, naturalized Filipino citizen and married to a Filipina. He had been living in Pampanga since
1990.

c. Pao Gasul, Spanish citizen, a resident of Madrid, Spain, spent a one (one) Week vacation in Boracay.

d. Lee Min Ho, Korean singer, held a 3-day concert in Manila.

• Answer: B

You might also like