1. With regard to patent rights, many countries only regard the income obtained by providing it to others as royalties, while the income obtained by transferring patent rights is listed as the tax object of capital gains tax.
There is no capital gains tax in China, so the income from providing or transferring patent rights to individuals is included in the income from royalties and personal income tax is levied.
2. Legal basis: Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China (revised on February 6, 2008)
(6) 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.
(9) Income from property transfer refers to income obtained by individuals from transferring securities, shares, buildings, land use rights, machinery and equipment, vehicles, boats and other property.
Extended data
When transferring patent rights, we should pay attention to the following two issues:
1. The creditor may assign all or part of its rights under this contract to a third party, except for the following circumstances:
(1), which is not transferable according to the nature of the contract;
(2), according to the agreement of the parties shall not be transferred;
(3) It shall not be transferred according to law.
Where the creditor transfers its rights, it shall notify the debtor. Without notice, the assignment is invalid to the debtor. The notice of the creditor's transfer of rights shall not be revoked, except with the consent of the transferee. Where the obligee transfers its rights, the assignee obtains the subordinate rights shared with the obligee, except that the subordinate rights belong exclusively to the obligee.
After receiving the notice of assignment of creditor's rights, the debtor may claim the assignor's defense against the assignee. When the debtor receives the notice of assignment of creditor's rights, the debtor enjoys the creditor's rights against the assignor, and if the debtor's creditor's rights expire before or at the same time as the assigned creditor's rights, the debtor may claim set-off from the assignee.
Baidu Encyclopedia-Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China