Practice question
A resident citizen receives P40,000 covered domestic-corporation cash dividends and also earns active repair-business income. What is the dividend final tax, assuming no special exemption?
- P4,000 separately under the dividend rule
- Zero because all receipts become repair income
- P8,000 because every passive item is20%
- P40,000
- A rate chosen by the shareholder
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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