Royalty: royalties from patent rights or proprietary technologies; Royalties from trademark rights; Royalties; Fees for distribution rights, sales rights or other similar rights. If an individual donates for public welfare or relief within the territory of China, the portion of his donation that does not exceed 30% of the taxable income declared by the taxpayer may be deducted from his taxable income.
Tax conditions for royalties: royalties are related to imported goods; Payment of royalties is a condition for selling imported goods to People's Republic of China (PRC).
Royalty income refers to the income obtained by enterprises from providing franchise rights such as patents, non-patented technologies, trademarks and copyrights.
Royalty income shall be recognized according to the date when the concessionaire pays the royalties as agreed in the contract.
Franchise fee can be understood as the fee charged for franchising a certain commodity or service, such as Olympic licensed goods, and the franchisee pays the franchise fee to the Olympic Organizing Committee according to a certain proportion of sales.
The commission ratio is generally 5- 15% of the retail price of goods. Franchise fees for the provision of equipment and other tangible assets are recognized at the time of asset delivery or asset ownership transfer.
If it is a general taxpayer, the VAT rate of royalties is 6%;
If it is a small-scale taxpayer unit, the value-added tax rate of royalties is 3%;
Due to the epidemic situation in COVID-19, the collection rate of small-scale taxpayers outside Hubei is 1%.
It is particularly important to note that State Taxation Administration of The People's Republic of China has defined the following four types of royalties in the form of Notice (No.507, 2009), which are not royalties:
First, the after-sales service remuneration under the simple trade of goods;
Second, the remuneration received by the seller for providing services to the buyer during the product warranty period;
Three, refers to the relevant services obtained by institutions or individuals specializing in engineering, management, consulting and other professional services;
4. Other similar remuneration stipulated by People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China.
Therefore, the definition of royalties is still basically limited to all kinds of licensing income related to intellectual property rights.
(2) Application for franchise right
The agreement stipulates: "As a condition of selling the appraised goods, the buyer must directly or indirectly pay the royalties related to the appraised goods, as long as the royalties are not included in the paid or payable price", and the royalties should be included in the customs value.
Conditions for the royalty to be included in the customs value of imported goods:
1, related to the estimated goods:
It is a complicated matter to determine whether a commission is related to the estimated goods, mainly depending on the specific payment object. When we analyze and estimate the payment relationship between goods (tangible goods) and rights, information or services (intangible goods), we generally have to grasp a basic principle: whether importers can get tangible goods without buying intangible goods. If the answer is yes, then it can be concluded that royalties have nothing to do with the estimated goods and should be priced separately as far as possible; If the answer is no, it can be concluded that the royalty is related to the estimated goods.
The right to copy imported goods has nothing to do with the estimated goods.
2. As a condition for selling the appraised goods.
3. The price paid by the buyer is not included in the actual payable price.
As a condition of selling the estimated goods:
The payment of royalties must be the sales condition of the assessed goods, which is an important criterion to judge whether royalties become the customs value of the assessed goods. The sales mentioned here refer to the export sales of the importing country. Therefore, after the goods are imported, the royalties generated by the importer when reselling the goods in the importing country, even if they become the conditions for resale, cannot become part of the duty-paid price.
Whether a certain royalty constitutes the sales conditions of the estimated goods can also be judged according to whether the royalty is independent of the estimated goods. If they are not independent of each other, the expenses constitute the conditions of sale and must be included in the duty-paid price.
Legal basis:
individual income tax law of the people's republic of china rules for its implementation
Article 14 The term "each time" as mentioned in Item 2, Item 4 and Item 6 of Paragraph 1 of Article 6 of the Individual Income Tax Law shall be determined by the following methods:
(1) Income from remuneration for labor services, royalties and royalties shall be regarded as one-off income if they are one-off; If it belongs to the continuous income of the same project, the income obtained within one month shall be regarded as one time.
(two) the income from the lease of property shall be obtained within one month.
(3) For income from interest, dividends and bonuses, the income obtained when paying interest, dividends and bonuses shall be regarded as one time.
(4) Accidental income, obtained once at a time.
Article 6 The scope of personal income as stipulated in the Individual Income Tax Law:
(1) Income from wages and salaries refers to wages, salaries, bonuses, year-end salary increase, labor dividends, allowances, subsidies and other income related to employment.
(2) Income from remuneration for labor services refers to income obtained by individuals from engaging in labor services, including design, decoration, installation, drawing, testing, medical treatment, law, accounting, consulting, lecturing, translation, manuscript review, painting and calligraphy, sculpture, film and television, audio and video recording, performance, performance, advertisement, exhibition, technical service, introduction service and brokerage service.
(3) The term "income from royalties" refers to the income obtained by individuals from publishing their works in the form of books, newspapers and periodicals.
(4) Income from royalties refers to income obtained by individuals from providing patents, trademarks, copyrights, the right to use non-patented technologies and other franchises; The income from providing the right to use copyright does not include the income from remuneration.
(5) Operating income means: 65,438+0. Income obtained by individual industrial and commercial households engaged in production and operation, and income obtained by investors of sole proprietorship enterprises and individual partners of partnership enterprises engaged in production and operation of sole proprietorship enterprises and partnership enterprises registered in China; 2 individuals engaged in paid service activities such as running schools, medical care and consulting according to law; 3 individuals from enterprises and institutions contracting, leasing, subcontracting, subletting income; Individuals engaged in other production and business activities.
(6) Income from interest, dividends and bonuses refers to income from interest, dividends and bonuses obtained by individuals with creditor's rights and equity.
(7) Income from property leasing refers to income obtained by individuals from renting real estate, machinery and equipment, vehicles, boats and other property.
(8) The term "income from property transfer" refers to the income obtained by individuals from the transfer of securities, stock rights, partnership property shares, real estate, machinery and equipment, vehicles, boats and other property.
(9) Accidental income refers to personal winning prizes, winning prizes, winning lottery tickets and other accidental income. If it is difficult to define taxable income items for personal income, it shall be determined by the competent tax authorities in the State Council.