BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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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.
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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: -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.