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 term “domestic”, when applied to a corporation, means created or organized in the Philippines or under the laws of a foreign country as long as it maintains a Philippine branch.
Detailed explanation-2: -(C) The term ‘domestic, ’ when applied to a corporation, means created or organized in the Philippines or under its laws.
Detailed explanation-3: -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-4: -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-5: -A resident foreign corporation is one which establishes its physical presence in the Philippines – e.g. through an office, a branch or a sales office. Foreign corporations or entities could do business in the Philippines as a domestic corporation or as a resident foreign corporation.