DDD Corp. is not correct. Any person who, in the ordinary course of trade or business, leases properties, whether personal or real, shall be subject…

The question

DDD Corp. is not correct. Any person who, in the ordinary course of trade or business, leases properties, whether personal or real, shall be subject to value-added tax (VAT), except for unless the gross annual receipts of the lessor do not exceed P1,919,500.00 or that the monthly rental does not exceed P12,800, for residential units. Based on the destination principle, goods and services are taxed only in the country where they are consumed. Here , the services rendered to the officials of EEE are within the Philippines. Hence, DDD Corp. is subject to VAT. For income tax purposes, the source of the service income is important for the taxpayer, who is a: (2012 Bar Question)

1. A.Filipino citizen residing in Makati City;
2. B.Non-resident Filipino citizen working residing in London, United Kingdom;
3. C.Japanese citizen who is married to a Filipino citizen and residing in their family home located Fort Bonifacio, Taguig City;
4. D.Domestic corporation.

This question has not been answered yet.