(i) Regular tax ABS Corporation is a PEZA-registered export enterprise which manufactures cameras and sells all its finished products abroad. Which…

The question

(i) Regular tax ABS Corporation is a PEZA-registered export enterprise which manufactures cameras and sells all its finished products abroad. Which statement is NOT correct? (2012 Bar Question)

1. A.ABS Corporation is subject to the 5% final tax on gross income earned, in lieu of all national and local taxes;
2. B.ABS Corporation is exempt from the 30% corporate income tax on net income, provided it pays value added tax;
3. C.ABS Corporation is subject to the 30% corporate income tax on net income;
4. D.ABS Corporation is exempt from all national and local taxes, except real property tax.

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