LSaF

Question

Taxation

Sampaguita Corp. is a domestic corporation not listed on the Philippine Stock Exchange and not affiliated with any multinational enterprise. For taxable year 2024, it reported net taxable income of ₱4,500,000. As of the end of TY 2024, its total assets (including land owned and used in its business operations) amounted to ₱120,000,000, of which the land had an appraised value of ₱40,000,000. In addition, Sampaguita Corp. has been incurring net operating losses for the past two years and is concerned it might be liable for the Minimum Corporate Income Tax (MCIT).

(a) What corporate income tax (CIT) rate applies to Sampaguita Corp. for TY 2024?
(b) Is Sampaguita Corp. subject to MCIT? Explain. (Bar 2026 Syllabus)

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