Practice question
A partner receives a share of a GPP’s already-computed distributive net income and seeks the 8% gross-receipts option on that share. What does RR 8-2018 provide?
- Every GPP share must use 8%
- A partner may always deduct the partnership’s expenses again
- The 8% option is not available for that already-net GPP distributive share
- GPP partners are permanently exempt from income tax
- The share is automatically salary
Legal references
- NIRC, Sections 26, 32(B) and 40(A), (C)(3)-(5), read with later amendments: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
- BIR Revenue Regulations 8-2018, compensation, minimum-wage and professional/GPP rules, read with subsequent amendments: https://bir-cdn.bir.gov.ph/local/pdf/RR%20No.%208-2018.pdf
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