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Philippine Bar review · Question

Practice question: Criteria in Imposing Income Tax

Multiple Choice Medium

Practice question

A resident Filipino works aboard a vessel used only in domestic trade and invokes the special seaman proviso solely because he is a crew member. Which is correct?
  1. Every domestic crew member automatically meets all stated conditions.
  2. Every vessel is deemed engaged exclusively in international trade.
  3. The proviso applies only to aircraft pilots.
  4. The worker automatically becomes a foreign corporation.
  5. Crew status alone does not satisfy the proviso's exclusively-international-trade and abroad-service conditions.

Legal references

  • NIRC, Sections 5-7,22-23 and32, as enacted in RA8424 and subject to the cited later amendments: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
  • RA12214, May29,2025, CMEPA, including amended NIRC Sections22,25 and32: https://lawphil.net/statutes/repacts/ra2025/ra_12214_2025.html
  • RA12066, CREATE MORE, Section3 amending NIRC32(B)(5) treaty exclusions: https://lawphil.net/statutes/repacts/ra2024/ra_12066_2024.html

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