In which subject is royalty included?
There are three specific situations:
1. If a patent is formed, the following items shall be taken as one of the costs of the patent, together with other costs of forming the patent:
Borrow: intangible assets
Loans: bank deposits
2, if the enterprise does not have a patent, then directly included in the management costs:
Borrow: management fee
Loan: bank deposit or cash on hand.
3. If the patent fee is used for the research and development of enterprise scientific research projects, the research and development expenditure account can be carried forward to the management expense account:
Borrow: R&D expenditure
Loan: cash or bank deposit.
Borrow: management expenses-research and development expenses
Loan: R&D expenditure
VAT rate of royalties
After the reform of the camp, enterprises transfer patented technology, which belongs to intangible assets. The applicable VAT rate is 6%.
According to Article 2 of the Provisional Regulations on Value-added Tax in People's Republic of China (PRC), the tax rate of value-added tax: unless otherwise stipulated in Items 1, 2 and 5 of this article, the tax rate of taxpayers selling labor services and intangible assets is 6%.
How to calculate royalty tax?
According to the relevant provisions of the individual income tax law, personal income tax should be paid on the income from royalties.
Royalty income refers to the income obtained by individuals from providing franchise rights such as patents, trademarks, copyrights and non-patented technologies. It is subject to a tax rate of 20%. If each income does not exceed 4,000 yuan, the taxable income of each income =-800; If the income is more than 4,000 yuan each time, the taxable income = the amount of income each time ×( 1-20%).
Therefore, personal income tax should be calculated and paid according to royalties.
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