Participating in a tax training program created by the Philippine Association of Certified Tax Technicians Inc. and successfully obtaining their certifications equips you with a comprehensive understanding of the Philippine Tax System and its associated regulations. The knowledge acquired through this training enables you to assist businesses and the government in enhancing tax awareness. This article shares my journey of passing the examination and earning the Certified Tax Technician (CTT).
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Registration
In late September 2023, I enrolled in the program and paid a registration fee of P2,700. This fee covers the training sessions and includes a T-shirt, which will be provided during the exam. A few weeks later, I received an email confirming my registration and instructions to join a Private Facebook Group. This group serves as our learning platform, where orientations and live discussions take place. Additionally, the admin regularly uploads review materials for our studies.
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During the orientation, Sir Ampongan explained how the program operates, detailing the live discussion schedule and the examination process. If I recall correctly, the examination is zero-based, with a passing score of 65, subject to certain conditions. The training schedule is as follows:
- October 07 - Income Taxation: Inclusions to and Exclusions from Gross Income, and Tax on Individual Taxpayers
- October 08 - Income Taxation: Tax on Corporations and Partnerships, and Taxes on Dealings in Property
- October 14 - Estate Tax: Computation of Gross Estate, and Deductions from the Gross Estate.
- October 15 - Estate Tax Amnesty, and Donor's Taxation
- October 21 - Income Tax: Creditable and Final Witholding Taxes, and Deduction from Gross Income
- October 22 - VAT: Sale of Goods, Properties & Services, Exempt Transactions, Lease of Properties, and Importation of Goods.
- October 28 - Other Percentage Taxes (OPT), and Local Taxation
- October 29 - BIR Forms
Review and Preparation Period
Working as a tax associate at an accounting firm while reviewing has given me a significant advantage. It has provided me with practical insights into the process of computing and filing taxes along with a valuable refresher on the Tax Code. While the softcopy reviewers supplied by the program are quite adequate. I also purchased "CPA Reviewer in Taxation" by Omar Erasmo G. Ampongan.
This book is both comprehensive and up-to-date, reflecting the latest legal provisions and the most recent Revenue Regulations (RR) from the Department of Finance, as well as Revenue Memorandum Orders (RMOs) and Tax Advisories issued by the BIR. I focus on studying the chapters relevant on this program, including the comprehensive problems provided. Additionally, I own two Tax books by Sir Rex B. Banggawan, CPA, MBA, which serve as supplementary reference.
In preparing for the exam, I find that the softcopy reviewers from the program are truly sufficient to pass the CTT exam. I purchased the additional books for future reference. After work, I concentrate on the handouts first, then move on to Ampongan's book, and if time permits, I delve into Sir Rex's tax books, continuing this routine until the review schedule is complete. It's exhausting but incredibly rewarding.
Examination Day
November 12, 2023— Before entering the examination room, I ensured I had all the essentials: my calculator, some small snacks, a 1000ml bottle of water, pencils, and more.
The exam consisted of two sections, each containing 50 questions— one focused on theories and the other on problem-solving, with a total time allowance of three hours. The year 2023 marks a transitional phase during which the tax rates under the CREATE Law revert to their normal rates, impacting both income tax and business tax (from July 01, 2020, to June 30, 2023).
In the theory section, most questions were situational, applying the concepts I had learned throughout the program. They were also technical questions requiring knowledge of specific Republic Acts, along with a few computational problems. The topics covered included various taxes—estate tax, donor's tax, other percentage taxes, value-added taxes, local taxes, and documentary stamp taxes.
For the practical problems, the exam included topics such as Quarterly Corporate Income Tax (MCIT vs RIT) and Quarterly Percentage Taxes, which are directly related to the transitional provisions of the CREATE Law for the calendar year 2023, adding a layer of complexity. Additionally, there were problems addressing the transitions from Percentage Taxes to VAT, reflecting the changes in tax rates due to CREATE Law. A Capital Gains Tax problem was included. This section proved more challenging, as failing to solve the first question would hinder the progress on subsequent questions. The last ten items in this section focused on BIR forms and their respective deadlines for both quarterly and annual submissions.
What is my approach in answering the exam questions?
Before tackling the exam, I thoroughly scan each page and organize my time allocation into two segments. For my approach, I allotted 30 minutes to theory and the remainder for practical problems, as these sections are lengthy and require more time.
In the theory sections, I focused on answering and highlighting the easier questions first, which were the theoretical ones. I aimed to complete the remaining theoretical questions within the 30-minute timeframe, even if I was uncertain about some answers.
For the practical problems, I began with the Quarterly Business Tax (OPT and VAT) since they were simpler to address. Next, I moved on to the BIR Forms, followed by the Income Tax, which took the most time. Finally, I answered the Capital Gains Tax, as I found it challenging to answer.
Fifteen minutes before the exam ended, I shaded my answer sheet and reviewed some of the items. In total, the test consumed exactly three hours of my time, during which I skipped snacks but stayed dehydrated by drinking plenty of water.
Exam Content and the Result
The CTT Examination covers all the topics in the review program. In my experience, the majority of the items focus on Income Taxes and Business Taxes, while the remaining topics are primarily theoretical, involving either situational analysis or simple computations. Here are the key points I recall from the exam:
- Effective January 1, 2018, this expense is no longer deductible from the gross estate of a non-resident: Judicial
- The short title for the Tax Reform Acceleration and Inclusion Law is: RA 10963
- An invoice or official receipt remains valid for a period of __ years from the date of __.
- The Tax Amnesty Act is Republic Act No.:11569
- The Estate Tax Amnesty Act of 2023 took effect on: June 15, 2023
- BIR Form 0619-E and 1601EQ can be found in Part II
- The deadlines for BIR Filings can be found in Part II
- VAT in Rentals involves a simple computation problem.
- 8% income tax
- Familiarize yourself with the most commonly used DST Rates
- Familiarize yourself with the most commonly used Local Taxes
- Estate and Donor's Taxes included in Part 1 - computational problems
On December 29, 2023, the results were released. Out of 1,481 candidates, 621 successfully passed the CTT exam, resulting in an approximate 42% passing rate. I was among those who passed, viewing it as a gift to close out 2023. My score was 76 out of 100, which I consider a good score. Here is the breakdown of my performance:
- Part 1 (50%) Basic Tax Laws and Procedures: 37 points
- Part 2 (50%) Tax Practice: 39 points
Through a dedication and faith in the program's process. I reaped the rewards of success. Simply give it your all, and you'll see the results. Good Luck!
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