BUISENESS MANAGEMENT
TAXES
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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 excess of the MCIT over RCIT could be carried over to three (3) succeeding taxable years until the corporation becomes liable to the 30% RCIT. During the year of MCIT payment, ensure that the MCIT is indicated in the annual ITR and AFS.
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: -The MCIT is imposed on gross income which is arrived at by deducting the capital spent by a corporation in the sale of its goods, i.e., the cost of goodsand other direct expenses from gross sales.
Detailed explanation-4: -MCIT is imposed where the CIT at 25% is less than 2% MCIT on gross income. Proprietary educational institutions and hospitals that are non-profit, on net income if gross income from unrelated trade, business, and other activities does not exceed 50% of the total gross income from all sources.