Practice question
A covered manufacturer has a PHP10 million allocable base, one principal office and two factories producing 30% and 70% of total output. No plantation or other relevant facility exists. What allocation follows 150(b),(d)?
- PHP5 million to each factory and nothing to the principal office.
- PHP3 million principal office; PHP2.1 million first factory; PHP4.9 million second factory.
- PHP10 million only where the last invoice was signed.
- Equal thirds regardless of production.
- PHP7 million principal office and PHP3 million only to the smaller factory.
Legal references
- RA7160, LGC Sections139,145-146,150,157-163 and252-253: https://lawphil.net/statutes/repacts/ra1991/ra_7160_1991.html
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