Practice question
What does an allowable income-tax deduction ordinarily reduce?
- The income base used to compute the tax
- The tax due peso for peso in every case
- Only the taxpayer's birth year
- Only the applicable statutory tax rate
- Only the taxpayer's bank balance
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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