Do I have to pay personal income tax on royalties?
Should pay. Royalty is a kind of royalty, and income from wages and salaries, remuneration for labor services, remuneration for manuscripts and royalties are all comprehensive income from personal income tax, so personal income tax should be paid in two stages: (1) Withholding and remitting: the withholding agent withholds and remits taxes on a monthly basis or every time in the current year. (2) Final settlement: those who meet the requirements will be settled from1March to June 30th of the following year, with overpayment and underpayment. Article 2 of the Individual Income Tax Law of People's Republic of China (PRC) shall be subject to individual income tax: (1) Income from wages and salaries; (2) Income from remuneration for labor services; (3) Income from remuneration; (4) Income from royalties; (5) Operating income; (6) Income from interest, dividends and bonuses; (7) Income from property lease; (8) Income from property transfer; (9) Accidental income. Individual residents who obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax according to the tax year; Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly or itemized basis. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with this Law.