Rule 9 - Royalties or copyright fees, etc., for literary or artistic work

Allocation of royalties: temporal apportionment of receipts with specified tax computation and reduction for subsequent years.

Receipts as royalties or copyright fees are apportioned by the duration of authorship: if creation time exceeds twelve but is less than twenty four months, split one half in the year received and one half in the next year; if twenty four months or more, include one third in the year received and one third in each of the two succeeding years. For applicable assessment years, tax for the year of receipt is computed by taxing total income reduced by two thirds of the allocated amount plus tax on two thirds of that amount at the rate applicable to a one third inclusion; taxes for the two succeeding years are reduced by half of that latter tax.