Which is exempted from taxation?Sec. 32B of the Tax CodeGroup of answer choicesRoyaltiesSpecific treaty stipulations
Question
Which is exempted from taxation?
Sec. 32B of the Tax Code
Group of answer choices
- Royalties
- Specific treaty stipulations
Solution
In the context of taxation provisions under Sec. 32B of the Tax Code, exemptions from taxation typically refer to specific categories of income or transactions that are not subject to tax.
-
Royalties: Generally, royalties may be subject to taxation under certain regulations. They are compensatory payments made for the use of property, such as patents, copyrights, or trademarks.
-
Specific treaty stipulations: These are provisions that may arise from tax treaties between countries. Such treaties often include clauses that can exempt certain income types, including royalties from foreign sources, to avoid double taxation.
Thus, while royalties are generally taxable, specific treaty stipulations can sometimes exempt them based on international agreements that dictate taxing rights between countries. Hence, if a particular treaty provides for the exemption of royalties earned by a resident of one country from taxation in another country, then such royalties would be exempted based on the treaty.
In conclusion, among the given options, specific treaty stipulations are more likely to provide a clear framework for exemption from taxation.
Similar Questions
Which is exempted from taxation?Sec. 32B of the Tax CodeGroup of answer choicesRetirement benefitsAnnuities
Withholding tax rates imposed through tax treaties areGroup of answer choicesbilateral.multilateral.netted.none of the options
______bond is normally exempted from taxesa.corporate bondb.government bondc.municipal bondd.all of the above
Income tax is classified as: (find the exception)*1 pointnational taxindirect taxexcsie taxprogressive tax
Is there such thing like International tax law? If yes, then justify your answer in writing and send it via email?
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.