Income Taxation - Philippines Nicanor, a non-resident citizen residing in United State of America, deposited $5.000 in BPI, Morayta Branch,a local bank authorized by the Banko Sentral ng Pilipinas (BSP) to engage in foreign-currency denominatedtransactions.S1: If the deposited money earns $20 interest income, the interest income is subject to 15% final tax.S2: If the deposited money earns P1,000 interest income, the interest income is subject to 20% final tax.O a. Only S1 is trueb. Only S2 is trueO c. Both are trueO d. Both are false

Nicanor- Non Resident Citizen residing in United State of America Deposited $5000 in BPI,…

51: If the deposited money earns $20 interest income, the interest income is subject to 15% final tax. 52: If the deposited money earns P1,000 interest income, the interest income is subject to 20% final tax. O a. Only S1 is true O b. Only S2 is true O c. Both are true O d. Both are false

51: If the deposited money earns $20 interest income, the interest income is subject to 15% final tax. 52: If the deposited money earns P1,000 interest income, the interest income is subject to 20% final tax. O a. Only S1 is true O b. Only S2 is true O c. Both are true O d. Both are false

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Income Taxation - Philippines

Nicanor, a non-resident citizen residing in United State of America, deposited $5.000 in BPI, Morayta Branch,
a local bank authorized by the Banko Sentral ng Pilipinas (BSP) to engage in foreign-currency denominated
transactions.
S1: If the deposited money earns $20 interest income, the interest income is subject to 15% final tax.
S2: If the deposited money earns P1,000 interest income, the interest income is subject to 20% final tax.
O a. Only S1 is true
b. Only S2 is true
O c. Both are true
O d. Both are false

Rules by which an authority (usually a government) imposes a financial obligation on individuals or organizations within its domain. Property or transactions can be taxed. While taxes are primarily intended to fund the operation of a government, many tax laws are created to encourage or discourage certain behaviors by citizens or companies.

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