Updated: Aug 20, 2021

The sum paid for the right to use another person’s property for productive purposes. For instance, royalties may be paid for working mines to the owner of the land, or by a publisher to an author. There are special taxation rules for dealing with royalties where they apply to books, the object being to spread the income over the period of expenditure. Thus, the income may be spread back over the time the book was written.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.