Practice question
Assume pertinent gross income of P1,000,000 and P200,000 of fully allowable deductions. There are no other adjustments. What is taxable income before computing tax and applying credits?
- P1,200,000
- P200,000
- P1,000,000
- P800,000
- P0
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
Answer this question in flashcards to review your response and continue practicing.