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Philippine Bar review · Question

Practice question: Tax Deductions vs. Tax Credits

Multiple Choice Medium

Practice question

Assume correctly computed income tax before credits of P100,000 and a fully allowable P20,000 credit. No other adjustments apply. What is the remaining tax payable?
  1. P120,000
  2. P100,000
  3. P20,000
  4. P0
  5. P80,000

Legal references

  • NIRC Section 31, as amended by RA 10963 Section 8; https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html
  • NIRC Section 34(C), distinction between deduction and credit for qualifying foreign taxes; https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html

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