MANAGEMENT

Detailed explanation-1: -Unification of tax rates on passive income-a uniform tax rate of 15 percent will be imposed on interest income, dividends, and capital gains on the sale of shares of stock, debt instruments and other securities not traded in a local exchange or an organized marketplace.

Detailed explanation-2: -Dividend income These dividends are excluded from the taxable income of the recipient. Dividends received by a non-resident foreign corporation from a domestic corporation are subject to a general final WHT at the rate of 25%.

Detailed explanation-3: -Key Takeaways. Passive income is income generated from someone other than an employer or a contractor. It can be generated by earning interest on savings, getting cash back or rewards on a credit card, renting out a space, purchasing dividend-paying stocks, and so on.

Detailed explanation-4: -Passive income includes regular earnings from a source other than an employer or contractor. The Internal Revenue Service (IRS) says passive income can come from two sources: rental property or a business in which one does not actively participate, such as being paid book royalties or stock dividends.