TRAIN Law
Multiple Choice
1. Effective January 1, 2018, the following income payments to self-employed individuals or
professionals shall be subject to 5% or 10% expanded withholding tax (EWT) except?
a. Professional fees, talent fees or commissions etc., for services rendered by individuals
b. Income distribution to partners of general professional partnership (GPP)
c. Income payment to brokers and agents
d. Payment of commission to independent and/or exclusive sales representatives, and
marketing agents of companies
e. None of the above
2. Beginning January 1, 2018, coal produced under Coal Operating Contracts entered in by the
Philippine government pursuant to Presidential Decree (PD) 972 as well as those exempted
from excise tax on mineral products under other tax laws shall be subject to the following
excise rates, except?
a. P50 per metric ton effective January 1, 2018
b. P100 per metric ton effective January 1, 2020
c. P150 per metric ton effective January 1, 2020
d. P150 per metric ton on January 1, 2021
e. P100 per metric ton effective January 1, 2019
3. Starting January 1, 2018, locally extracted or produced non-metallic minerals and quarry
resources shall be subject to excise tax at what rate?
a. Exempt
b. Four percent (4%) based on the actual market value of the gross output thereof at the time
of removal
c. Four percent (4%) based on the fair market value of the gross sales thereof at the time of
removal
d. Four percent (4%) based on the value used by the Bureau of Customs (BoC) in determining
tariff and customs duties, net of excise tax and value added tax (VAT)
e. Six percent (6%) of the fair international market price
4. Under the TRAIN Law, imported copper, gold, chromite and other metallic minerals shall be
subject to excise tax at what rate?
a. Exempt
b. Four percent (4%) based on the actual market value of the gross output thereof at the time
of removal
c. Four percent (4%) based on the fair market value of the gross sales thereof at the time of
removal
d. Four percent (4%) based on the value used by the Bureau of Customs (BoC) in determining
tariff and customs duties, net of excise tax and value added tax (VAT)
e. Ten percent (10%)
5. Which of the following shall be subject to excise tax of 6% of the fair international market price
on the first taxable sale, barter, exchange or such similar transaction, such tax to be paid by
the buyer or the purchaser before removal from the place of production?
1
, a. Locally extracted gold
b. Locally extracted chromite
c. Indigenous petroleum
d. Metallic and non-metallic minerals
e. None of the above
6. There are petroleum products which became subject to excise tax rate of P8.00 per liter
effective January 1, 2018. These are:
a. Lubricating oils and greases, locally produced or imported oils, waxes and petrolatum
b. Denatured alcohol to be used for motive power, processed gas, kerosene
c. Process gas, asphalts, naptha
d. Unleaded premium gasoline, regular gasoline, lubricating oils
e. Kerosene, gasoline, naptha
7. Statement 1 - Diesel fuel oil, and on similar fuel oils having more or less the same generating
power shall be subject to excise tax of P2.50 per liter of volume capacity under the TRAIN Law.
Statement 2 – Liquefied petroleum gas used for motive power shall be subject to excise tax of
P2.50 per kilogram under the TRAIN Law.
Statement 3 – Petroleum coke shall be subject to excise tax of P2.50 per metric ton under the
TRAIN Law.
a. Statement 1 is True; Statement 2 is True
b. Statement 1 is True; Statement 2 is False
c. Statement 1 is False; Statement 2 is True
d. Statement 1 is False; Statement 2 is False
e. 2 statements are true and 1 statement is false
8. Statement 1 – Lubricating oils and greases produced from basestocks and additives on which
excise tax has already been paid shall no longer be subject to excise tax.
Statement 2 – Any excess of excise tax paid on raw materials resulting from manufacturing,
blending, processing, storage and handling losses shall not give rise to a tax refund or credit.
Statement 3 – For the period covering 2018 to 2020, the scheduled increase in the excise tax
on fuel shall be suspended when the average Dubai crude oil based on Mean of Platts Singapore
(MOPS) for three (3) months prior to the schedule increase of the month reaches or exceed
eighty dollars (US$80) per barrel.
a. Statement 1 is True; Statement 2 is True
b. Statement 1 is True; Statement 2 is False
c. Statement 1 is False; Statement 2 is True
d. Statement 1 is False; Statement 2 is False
e. 2 statements are true and 1 statement is false
9. Statement 1 – Cigarettes packed by hand shall be subject to excise tax rate of P32.50 per pack
effective January 1, 2018 until June 30, 2018 under the TRAIN Law.
2
Multiple Choice
1. Effective January 1, 2018, the following income payments to self-employed individuals or
professionals shall be subject to 5% or 10% expanded withholding tax (EWT) except?
a. Professional fees, talent fees or commissions etc., for services rendered by individuals
b. Income distribution to partners of general professional partnership (GPP)
c. Income payment to brokers and agents
d. Payment of commission to independent and/or exclusive sales representatives, and
marketing agents of companies
e. None of the above
2. Beginning January 1, 2018, coal produced under Coal Operating Contracts entered in by the
Philippine government pursuant to Presidential Decree (PD) 972 as well as those exempted
from excise tax on mineral products under other tax laws shall be subject to the following
excise rates, except?
a. P50 per metric ton effective January 1, 2018
b. P100 per metric ton effective January 1, 2020
c. P150 per metric ton effective January 1, 2020
d. P150 per metric ton on January 1, 2021
e. P100 per metric ton effective January 1, 2019
3. Starting January 1, 2018, locally extracted or produced non-metallic minerals and quarry
resources shall be subject to excise tax at what rate?
a. Exempt
b. Four percent (4%) based on the actual market value of the gross output thereof at the time
of removal
c. Four percent (4%) based on the fair market value of the gross sales thereof at the time of
removal
d. Four percent (4%) based on the value used by the Bureau of Customs (BoC) in determining
tariff and customs duties, net of excise tax and value added tax (VAT)
e. Six percent (6%) of the fair international market price
4. Under the TRAIN Law, imported copper, gold, chromite and other metallic minerals shall be
subject to excise tax at what rate?
a. Exempt
b. Four percent (4%) based on the actual market value of the gross output thereof at the time
of removal
c. Four percent (4%) based on the fair market value of the gross sales thereof at the time of
removal
d. Four percent (4%) based on the value used by the Bureau of Customs (BoC) in determining
tariff and customs duties, net of excise tax and value added tax (VAT)
e. Ten percent (10%)
5. Which of the following shall be subject to excise tax of 6% of the fair international market price
on the first taxable sale, barter, exchange or such similar transaction, such tax to be paid by
the buyer or the purchaser before removal from the place of production?
1
, a. Locally extracted gold
b. Locally extracted chromite
c. Indigenous petroleum
d. Metallic and non-metallic minerals
e. None of the above
6. There are petroleum products which became subject to excise tax rate of P8.00 per liter
effective January 1, 2018. These are:
a. Lubricating oils and greases, locally produced or imported oils, waxes and petrolatum
b. Denatured alcohol to be used for motive power, processed gas, kerosene
c. Process gas, asphalts, naptha
d. Unleaded premium gasoline, regular gasoline, lubricating oils
e. Kerosene, gasoline, naptha
7. Statement 1 - Diesel fuel oil, and on similar fuel oils having more or less the same generating
power shall be subject to excise tax of P2.50 per liter of volume capacity under the TRAIN Law.
Statement 2 – Liquefied petroleum gas used for motive power shall be subject to excise tax of
P2.50 per kilogram under the TRAIN Law.
Statement 3 – Petroleum coke shall be subject to excise tax of P2.50 per metric ton under the
TRAIN Law.
a. Statement 1 is True; Statement 2 is True
b. Statement 1 is True; Statement 2 is False
c. Statement 1 is False; Statement 2 is True
d. Statement 1 is False; Statement 2 is False
e. 2 statements are true and 1 statement is false
8. Statement 1 – Lubricating oils and greases produced from basestocks and additives on which
excise tax has already been paid shall no longer be subject to excise tax.
Statement 2 – Any excess of excise tax paid on raw materials resulting from manufacturing,
blending, processing, storage and handling losses shall not give rise to a tax refund or credit.
Statement 3 – For the period covering 2018 to 2020, the scheduled increase in the excise tax
on fuel shall be suspended when the average Dubai crude oil based on Mean of Platts Singapore
(MOPS) for three (3) months prior to the schedule increase of the month reaches or exceed
eighty dollars (US$80) per barrel.
a. Statement 1 is True; Statement 2 is True
b. Statement 1 is True; Statement 2 is False
c. Statement 1 is False; Statement 2 is True
d. Statement 1 is False; Statement 2 is False
e. 2 statements are true and 1 statement is false
9. Statement 1 – Cigarettes packed by hand shall be subject to excise tax rate of P32.50 per pack
effective January 1, 2018 until June 30, 2018 under the TRAIN Law.
2
