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Philippine Bar review · Question

Practice question: Situs of Income Taxation

Multiple Choice Easy

Practice question

Under Section42(A)(2)(a), dividends from a domestic corporation are sourced where?
  1. Within the Philippines
  2. Always where the shareholder was born
  3. Always in the currency-issuing country
  4. Always outside the Philippines
  5. Only where the dividend notice was printed

Legal references

  • NIRC RA8424, relevant provisions as amended: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html Section42(A)(2),(4),(C)(4),(E).
  • RA12214 CMEPA: https://lawphil.net/statutes/repacts/ra2025/ra_12214_2025.html Section12, current Section42(A)(1) amendment checked.
  • Aces Philippines v. CIR, GR226680, August30 2022 ENBANC MAIN: https://lawphil.net/judjuris/juri2022/aug2022/gr_226680_2022.html MAIN income-producing activity and Philippine gateway receipt.

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