Patented technology shares are regarded as sales and need to be fined according to law.
Extended reading:
The essence of investment in technological achievements is the simultaneous transfer of technological achievements and investment. According to the relevant provisions of the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on comprehensively pushing forward the pilot project of changing business tax to value-added tax (Caishui [2016] No.36), the transfer of technological achievements belongs to the sale of intangible assets and is exempt from value-added tax.
Technology, including patented technology and non-patented technology.
When applying for exemption from value-added tax, the written contract for investment in technological achievements must be approved by the local provincial science and technology department, issue an audit opinion certificate, and report it to the competent tax authorities for future reference.
The essence of investment in technological achievements is the simultaneous transfer of technological achievements and investment. According to the relevant provisions of the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on comprehensively pushing forward the pilot project of changing business tax to value-added tax (Caishui [2016] No.36), the transfer of technological achievements belongs to the sale of intangible assets and is exempt from value-added tax.