Practice question
A resident citizen receives Philippine-source royalties on a book, stipulated to be earned as passive income and covered by Section 24(B)(5), with no special exemption. Which final rate applies?
- 10%
- 20% without exception for books
- 25%
- 35% of the gross royalty
- 0% for all literary royalties
Legal references
- NIRC Sections 22(MM) and 24(B), as amended by RA 12214, Sections 3-4: https://lawphil.net/statutes/repacts/ra2025/ra_12214_2025.html
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