Practice question
Does calling a receipt a royalty conclusively establish the current passive-royalty final tax without examining its earning character?
- Yes, regardless of the facts
- Yes, whenever the payee owns a business
- Yes, whenever paid annually
- No; Section 24(B)(5) expressly addresses royalties earned as passive income
- Yes, whenever the contract uses English
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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