Practice question
A company is organized under Philippine law and has entirely foreign shareholders. A second company is organized abroad and has entirely Filipino shareholders but no Philippine trade or business. Their advisers classify the first as foreign and the second as domestic solely from shareholder nationality. Which correction is proper?
- Both are domestic because some relevant people are Filipino
- Both are foreign because some relevant people are foreign
- The advisers are correct because ownership always controls
- Both must be treated as individual aliens
- The first is domestic and the second foreign; on the stated business facts the second is a nonresident foreign corporation
Legal references
- NIRC Sections 4,22,23 and244: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/3896
- RA11976, Ease of Paying Taxes Act: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/96948
- RA12066, CREATE MORE Act: https://lawphil.net/statutes/repacts/ra2024/ra_12066_2024.html
- RA12214, Capital Markets Efficiency Promotion Act: https://lawphil.net/statutes/repacts/ra2025/ra_12214_2025.html
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