chapter 5

• individuals and corporations are tax-exempt interest income on long term deposits

  f
• generally, interest income from non-banks sources is subject to regular income tax

  t
• foreign income is subjected to final tax

  f
• items of passive income from abroad are subject to final tax

  f
• interest income on government securities are subject to final tax

  t
• all items of passive income are generally subject to final tax

  f
• final tax is collected at source; hence there is no need to file an income tax return

  t
• corporations are tax-exempt on inter-corporate dividends from any corporation

  f
• dividends from resident corporation are subject to regular tax

  t
• dividends from real estate investment trusts are exempt from final tax

  f
• stock dividends are always exempt from final tax

  f
• corporations are subject to final tax on prizes

  f
• the share in the net income of a business partnership is subject to a creditable withholding tax no to final tax

  f
• general professional partnerships are subject to final tax but not to regular tax

  f
• all non-residents are exempt from final tax on foreign currency deposits

  t
• royalties, active, or passive, are subject to regular income tax

  f
• the tax sparing rule is applicable to resident and non-resident foreign corporations

  f
• the final withholding tax return shall be filled by the withholding agent on or before the 15th day of the month the final taxes were withheld

  f
• a government employee may claim the tax informer’s reward

  f
• the final tax on winnings applies to corporations

  f
• individuals except corporations are subject to final tax on winnings abroad

  f
• winnings which are not more than 10,000 in amount are subject to the regular income tax

  f
• PCSO winnings are exempt from all the types of income tax

  f
• special aliens do not file a regular income tax return on their compensation income

  t
• the final tax on interest on tax-free corporate covenant bonds applies only to resident individual or corporate taxpayers

  f
• NRA-NETB and NRFC are subject to final tax only to passive income from sources in the philippines

  f
• NRA-NETB and NRFCs are not required to file the regular income tax return

  t
• residents shall withhold 10% final tax upon interest on foreign currency loans of FCDU banks under the expanded foreign currency deposit system

  t
• a qualified employee trust fund is not subject to final tax

  t
• the income of FCDU banks from fellow depository banks under the expanded foreign currency deposit system us subject to 10% final tax

  F
• petroleum service subcontractors are subject to 8% final tax on their income from petroleum service contractors

  t
• foreign governments and foreign government-owned and controlled corporations are exempt from final tax

  t