Is it tax-free to transfer patented technology to domestic subsidiaries holding 98% shares?

It's not tax-free. The transfer of patented technology needs to pay VAT. After the reform of the camp, enterprises transfer patented technology, which belongs to intangible assets. However, there are also some cases where VAT is exempted, and those who meet the following two conditions can be exempted.

1. The technical content is closely related to technology transfer, and it is the after-sales service of technology transfer, that is, the technology transfer contract should include relevant technical services and technical consultation clauses.

2. Formally, the price of this part of technical consultation or service is on the same invoice as the price of technology transfer. Only technical consulting and services that meet the above two conditions can enjoy the tax exemption policy. Legal basis: Provisional Regulations on Value-added Tax in People's Republic of China (PRC) Article 1 Units and individuals that sell goods or process, repair and repair services (hereinafter referred to as services), intangible assets, real estate and imported goods in People's Republic of China (PRC) are value-added tax payers and shall pay value-added tax in accordance with these regulations.