Practice question
An independent engineer elects the 8% option validly for the year and has qualifying gross fees. She also incurs ordinary office rent. She proposes deducting rent from the 8% gross-fee base while retaining that option. Which response is correct?
- Every office expense is deductible under every tax regime
- The rent makes the fees compensation income
- She may combine any features of the graduated and 8% methods
- The elected gross-base method does not permit an additional itemized rent deduction from that base
- Rent automatically makes the professional tax-exempt
Legal references
- NIRC Section 24(A), as amended by RA 10963, Section 5: https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html
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