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Bar Exam Review on Taxation – Income Sources

Guidant Resources Corporation, a corporation registered in Norway, has a 50 MW electric power plant in San Jose, Batangas. Aside from Guidant’s income from its power plant, which among the following is considered as part of its income from sources within the Philippines?

A. Gains from the sale to an Ilocos Norte power plant of generators bought from the United States.

B. Interests earned on its dollar deposits in a Philippine bank under the
Expanded Foreign Currency Deposit System.

C. Dividends from a two-year old Norwegian subsidiary with operations in
Zambia but derives 60% of its gross income from the Philippines.

D. Royalties from the use in Brazil of generator sets designed in the Philippines
by its engineers.

ANSWER IS LETTER ‘A’

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