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Philippine Bar review · Question

Practice question: Compensation Income

Essay Hard

Practice question

A worker argues that equity-based employment compensation is outside income tax because no cash salary was paid. Explain the current statutory response and timing for the specified equity compensation.

Legal references

  • RA 12214 (CMEPA), Sections 3-4, 8 and 28, amended NIRC Sections 22, 24 and 32 and transition: https://lawphil.net/statutes/repacts/ra2025/ra_12214_2025.html

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