The Individual Income Tax Law of People's Republic of China (PRC), which was promulgated in 2005 and newly revised on 201/KLOC-0, does not specify whether the income from the transformation of the patent achievements of service inventions needs to be taxed, and what is the applicable tax rate. More relevant is "royalty income"; According to 20 1 1 Individual Income Tax Law of People's Republic of China (PRC), the income from royalties refers to the income obtained by individuals providing the right to use patents, trademarks, copyrights, non-patented technologies and other franchises. In other words, the income from the transfer of individual invention patents is subject to the highest income tax rate of 20%. The patent right of service invention belongs to the unit, and the cash obtained from the transfer of the patent result of service invention is redistributed to the main inventor by the unit. How to pay individual income tax is not clearly stipulated in the current income tax law. Personal income obviously does not belong to salary bonus.
However, at present, the unit generally distributes the cash obtained from the transfer of service patents to individuals in the form of scientific research bonuses or year-end awards. According to the income tax law, the highest tax rate is 45%. According to the individual income tax law, the applicable tax rates of remuneration for writing, labor services and franchise income are all below 20%; The highest applicable tax rate for income from wages and bonuses can reach 45%, which is obviously high.
In 2007, the State Taxation Bureau issued the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Issues Concerning the Cancellation of the Right to Approve Individual Income Tax for Promoting the Transformation of Scientific and Technological Achievements, clarifying that scientific research institutions and institutions of higher learning will give individual rewards to scientific and technological personnel in the form of shares or investment proportions, and individual income tax will not be levied for the time being after being examined by the competent tax authorities. When the winners receive dividends according to the proportion of shares and capital contribution, their income is subject to personal income tax (20%) according to the tax item of "interest, dividend and dividend income". When the winner transfers the equity and the proportion of capital contribution, his income is subject to personal income tax (20%) according to the taxable item of "income from property transfer", and the original value of the property is zero. 2065438+200665438+1October 28th, People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.5+2006, concerning the follow-up management regulations on "temporarily canceling the personal income tax audit for promoting the transformation of scientific and technological achievements", scientific research institutions, institutions of higher learning or winners who convert their scientific and technological achievements into shares and investment proportions shall submit them to the competent authority within15th of the month following the award. It is not clear whether the cash income from the transformation of results needs to be taxed and the applicable laws and regulations are not clear.
20 15 The newly revised Law of People's Republic of China (PRC) on Promoting the Transformation of Scientific and Technological Achievements clearly puts forward that "tax preference should be given to the transformation of scientific and technological achievements", but no specific personal income tax preferential policy has been introduced. 2065438+February 2006, the State Council issued the Notice on Implementing Several Provisions of the Law of People's Republic of China (PRC) on Promoting the Transformation of Scientific and Technological Achievements, which clearly stipulated that not less than 50% of the total transfer of achievements should be used for scientific research teams and individuals, but did not specify the legal provisions applicable to individual income tax.
201611710 The Opinions on Implementing a Knowledge-oriented Distribution Policy issued by the Central Office and the State Council clearly stipulates that qualified stock options, stock options, restricted stocks, stock incentives and investments in scientific and technological achievements shall be subject to deferred tax preferential policies. In August this year, University of Shanghai for Science and Technology awarded 72% equity of three high-tech achievements in terahertz field to R&D team. Because the evaluation value is as high as 29 million, the acquisition of equity requires tens of millions of personal income tax. With the concerted efforts of several related functional departments, the scientific research team successfully filed a record, which became the first preferential case in China in which a single scientific and technological achievement was converted without tax. However, the income from the transformation of achievements involved in this case is equity, not cash income.
Personally, I understand that under the general environment that the country advocates scientific and technological innovation and under the guidance of the current relevant laws and regulations "tax preference", personal cash income in the transformation of achievements should be paid with reference to "royalty income" or "other income" in the personal income tax law, and the applicable tax rate should not exceed 20%. At the same time, the individual income tax law should be revised as soon as possible, and the legal mechanism should be clarified and improved, so as to further promote scientific and technological innovation, reduce the tax burden of scientific researchers and ensure their legitimate income.