### Question
How is the "active business computer software royalties" defined?


### Answer
The term **active business computer software royalties** is defined in *26 U.S.C. § 543* as follows -

> any royalties—


(A) received by any corporation during the taxable year in connection with the licensing of computer software, and


(B) with respect to which the requirements of paragraphs (2), (3), (4), and (5) are met

#### Citation:
  - *26 U.S.C. § 543*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter G-Corporations Used to Avoid Income Tax on Shareholders > PART II-PERSONAL HOLDING COMPANIES**

