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Philippine Bar review · Question

Practice question: Optional Standard Deduction

Multiple Choice Easy Jurisprudence

Practice question

For a corporation eligible under Section 34(L), the maximum 40% OSD is based on what?
  1. Its income tax due
  2. Its shareholders' personal income
  3. Its gross income as defined in Section 32
  4. Its paid-up capital
  5. Its gross assets

Legal references

  • NIRC Section34(L), as amended by RA10963: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/80559
  • RA9504, Section3: https://lawphil.net/statutes/repacts/ra2008/ra_9504_2008.html
  • RR16-2008, Sections3–4 (individual and corporate OSD bases): https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/10/43850

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