MANAGEMENT

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.