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Philippine Bar review · Question

Practice question: Situs of Income Taxation

Multiple Choice Easy

Practice question

Under NIRC Section 42, where is compensation for personal services performed entirely in the Philippines sourced?
  1. Within the Philippines
  2. Always in the payer's incorporation country
  3. Always at the employee's bank
  4. Always where the contract was signed
  5. Outside the Philippines whenever paid in dollars

Legal references

  • NIRC, Section 42(A), (C) and (E); https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
  • RA 12214, Section 12 (amending Section 42(A)(1)); https://lawphil.net/statutes/repacts/ra2025/ra_12214_2025.html

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