Practice question
Under amended Section 24(B)(1), a Philippine-source ordinary prize of exactly P10,000 is directed to which treatment for a covered resident citizen?
- Automatically subject to 20% final tax
- Automatically exempt because all prizes are exempt
- Tax under Section 24(A), rather than the over-P10,000 prize final-tax rule
- Always a 10% dividend
- Automatically ordinary bank interest
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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