BUISENESS MANAGEMENT
TAXES
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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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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Detailed explanation-1: - The MCIT shall be imposed whenever: 1. The corporation has zero taxable income; or 2. The corporation has negative taxable income; or 3. Whenever the amount of MCIT is greater than the RCIT due from such corporation.
Detailed explanation-2: -The MCIT is imposed whenever such corporation has zero or negative taxable income or whenever the amount of the MCIT is greater than the regular corporate income tax due from such corporation.
Detailed explanation-3: -It is equal to two percent (2%) of the gross income of a corporation at the end of the year. Being a minimum income tax, a corporation should pay the MCIT whenever its regular (normal) income tax is lower than the MCIT, or when the firm reports a net loss in its tax return.
Detailed explanation-4: -Any excess of the MCIT over the normal income tax shall be carried forward and credited against the normal income tax for the three (3) immediately succeeding taxable years.
Detailed explanation-5: -Minimum corporate income tax The MCIT is imposed when the standard 20 percent CIT is lower than the two percent MCIT on the company’s gross income. Any excess of the MCIT over the normal tax may be carried forward and credited against the normal tax for the three immediately succeeding taxable years.