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Philippine Bar review · Question

Practice question: Tax Deductions vs. Tax Credits

Multiple Choice Easy

Practice question

Under NIRC Section 31 as amended by TRAIN, taxable income means pertinent gross-income items less what?
  1. Every personal expense the taxpayer chooses
  2. Every cash payment regardless of purpose
  3. Deductions, if any, authorized for the income type by the Code or special laws
  4. The taxpayer's entire asset value
  5. All debts of the taxpayer regardless of deductibility

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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