Alain Descartes, a French citizen permanently residing in the Philippines, received several items during the taxable year. Which among the following…

The question

Alain Descartes, a French citizen permanently residing in the Philippines, received several items during the taxable year. Which among the following is NOT subject to Philippine income taxation? (2011 Bar Question)

1. A.Consultancy fees received for designing a computer program and installing the same in the Shanghai facility of a Chinese firm.
2. B.Interests from his deposits in a local bank of foreign currency earned abroad converted to Philippine pesos.
3. C.Dividends received from an American corporation which derived 60% of its annual gross receipts from Philippine sources for the past 7 years.
4. D.Gains derived from the sale of his condominium unit located in The Fort, Taguig City to another resident alien.

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