Practice question
Under NIRC Section 22(MM), introduced by RA 12214, passive income is characterized by what earning source?
- A source requiring the taxpayer’s active performance of trade or business
- A source not requiring the taxpayer’s active pursuit and performance of trade or business
- Only a source paid in cash
- Only a source paid to a corporation
- Every source with a monthly payment schedule
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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