MANAGEMENT

BUISENESS MANAGEMENT

TAXES

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Remittance of a branch of a foreign corporation in the Philippines of passive income earned in the Philippines to its head office, is exempt from branch remittance tax.
A
True
B
False
C
Either A or B
D
None of the above
Explanation: 

Detailed explanation-1: -Remittance receipts are considered income and are taxed at standard Philippines income tax rates, which vary between 5% and 33%. And if remittance income is not documented and reported properly, the recipient could incur a fine.

Detailed explanation-2: -Profits from qualified activities remitted by a branch registered with the Philippine Economic Zone Authority (PEZA) are tax exempt.

Detailed explanation-3: -A domestic corporation is subject to tax on its worldwide income. On the other hand, a foreign corporation is subject to tax only on income from Philippine sources.

There is 1 question to complete.