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Philippine Bar review · Question

Practice question: Professional Income

Multiple Choice Easy

Practice question

For an eligible individual electing OSD instead of itemized deductions, what maximum does Section 34(L) prescribe?
  1. Forty percent of gross sales or gross receipts, as applicable
  2. Forty percent of net income after every expense
  3. All personal consumption expenses
  4. Any percentage chosen each month
  5. One hundred percent of every receipt

Legal references

  • RA 9504, Section 3, NIRC Section 34(L) optional standard deduction: https://lawphil.net/statutes/repacts/ra2008/ra_9504_2008.html

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