BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A corporation which is not domestic may be a resident (engaged in business in the Philippines) or non-resident corporation (not engaged in business in the Philippines).
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True
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False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Foreign income A Philippine (domestic) corporation is taxed on its worldwide income. A domestic corporation is taxed on income from foreign sources when earned or received, depending on the accounting method used by the taxpayer.
Detailed explanation-2: -Corporate-Corporate residence A domestic corporation is a corporation that is created or organised under Philippine laws. A foreign corporation that is duly licensed to engage in trade or business within the Philippines is referred to as a ‘resident foreign corporation’.
Detailed explanation-3: -Expatriates assigned in the Philippines for a definite period are generally regarded as non-residents engaged in trade or business in the Philippines.
There is 1 question to complete.