When an enterprise obtains the royalty, it must be fully incorporated into the enterprise income to calculate the enterprise income tax. Personal income tax royalties can be incorporated into comprehensive income to calculate personal income tax. For income from royalties, the amount of income shall be the balance after deducting expenses from various incomes, and the amount of taxable income after deducting other allowable expenses shall be the withholding and prepayment; Royalty income in enterprise income refers to the income obtained by enterprises from providing patents, non-patented technologies, trademarks, copyrights and other franchise rights.
The characteristics of enterprise income tax are:
1, and the tax basis is taxable income;
2. The calculation of taxable income is very complicated. Treat taxpayers' different income items differently, and exclude some income from taxable income by not counting items;
3. Taxation is based on the principle of ability and affordability. If you have more income and greater affordability, you should pay more taxes; Low income, poor affordability and low tax revenue; No income, no affordability, no taxes;
4, the implementation of annual collection, phased management approach. Enterprise income tax is based on the taxable income of the whole year, paid in advance monthly or quarterly, and settled at the end of the year.
To sum up, the object of enterprise income tax is the income obtained by taxpayers. Including sales of goods, provision of services, transfer of property, dividends, interest, rent, royalties, donations and other income.
Legal basis:
Article 20 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC).
The income from royalties mentioned in Item (7) of Article 6 of the Enterprise Income Tax Law refers to the income obtained by enterprises from providing patents, non-patented technologies, trademarks, copyrights and other franchise rights. Royalty income shall be recognized according to the date when the concessionaire pays the royalties as agreed in the contract.