Passive income

Passive income – in the sphere of Tax Law in many legal systems, this phrase refers to secondary income, which is not the salary or the income achieved through the usual done work. But the passive, secondary income is still taxable (usually on monthly or annual basis). For example dividends from local companies rent or author’s rights could form the pot of passive income, depending if these come from the main subject of work. An antonym is the legal phrase “passive loss”, which describes the losses, occurred during such enterprises.

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