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Philippine Bar review · Question

Practice question: Active vs. Passive Income

Multiple Choice Easy

Practice question

What is the Section 24(B)(1) treatment of covered Philippine Charity Sweepstakes or Lotto winnings of P10,000 or less?
  1. Always ordinary salary
  2. Always 20% final tax without any exception
  3. Always a 10% book royalty
  4. Exempt under the express winnings exception
  5. Automatically foreign income

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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