The determination of edition tax rate generally takes into account the author's popularity, the type, quality and print run of the work, the potential market demand and the exclusive degree of the rights granted, and the author, copyright owner or his agent reach an agreement with the users of the work through consultation.
In some countries, the government sets different tax rates for different works. The royalty rate increases with the increase of subsequent print runs. In some countries, authors of musical or dramatic works also get royalties by performing musical or dramatic works. This royalty, also known as performance tax, is calculated by multiplying the box office income of a single performance by a certain proportion (royalty tax rate).
Extended data
Western countries such as Britain and the United States levy personal income tax on personal income (including royalties), and do not open a separate royalty tax item. In the Soviet Union, royalties were taxed separately, and the tax rate was different from the general income tax.
The collection standards of various countries are mostly different due to the source of royalties and taxpayers. Generally speaking, the royalty rate charged by consumers from China is low; Royalties collected from abroad are taxed at a higher rate.
The author himself receives a low royalty rate; Royalties received by the author's heirs are taxed at a higher rate. In China, the author's remuneration is taxed according to the Income Tax Law of People's Republic of China (PRC) and its detailed rules for implementation.
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