1. How to pay a tax on royalties?
Personal income tax is the general name of legal norms that adjust the social relationship between tax authorities and natural persons (residents and non-residents) in the process of personal income tax collection and management.
Income from royalties refers to the income obtained by individuals from providing the right to use patents, trademarks, copyrights, non-patented technologies and other franchises. The income from providing the right to use copyright does not include the income from remuneration.
If the individual's income from each royalty does not exceed 4,000 yuan, the expenses of 800 yuan can be deducted; If the income exceeds 4,000 yuan each time, 20% of the expenses can be deducted, and the balance is taxable income. Royalty income is subject to the tax rate of 20%.
The calculation formula is: personal income tax payable = taxable income ×20%.
For example, Yemou invented an automation patented technology, which was transferred to Company A in August 2004 at a transfer price of 6.5438+0.5 million yuan. Company A paid royalties of 6,000 yuan in August and 9,000 yuan in September. In September, Yemou transferred the right to use to Company D and made a profit of 8,000 yuan from the transfer fee. The personal income tax payable for Ye's transfer of royalties is:
Ye's patented technology has been transferred twice, and the personal income tax should be calculated separately from the income from the two transfers.
Personal income tax payable upon transfer to Company A = (6000+9000) × (1-20% )× 20% = 2400 yuan;
Personal income tax payable on the transfer to Company D = 8000× (1-20% )× 20% =1280 yuan;
Ye needs to pay personal income tax for transferring the patented technology =2400+ 1280=3680 yuan.
Two. How much is the royalty income?
Income from royalties refers to a taxable income of personal income adjustment tax in China. That is, the income obtained by units and individuals from providing or transferring various patents, know-how, copyrights and trademark rights for others to use. Without permission, no unit or individual may use the franchise rights owned by units and individuals to seek benefits for their own services. Only when the franchisee agrees to transfer or allow the use, and pays a certain usage fee, can it be used. Therefore, the royalty income is the exclusive income of the franchisor and an integral part of the taxable income of units and individuals.
3. Can royalties be deducted before tax?
Yes, business tax is levied on royalties obtained by individuals, and the business tax levied at 5% can be deducted before personal income tax.
Article 6 of the Individual Income Tax Law of People's Republic of China (PRC) stipulates that the calculation of taxable income:
(1) For the comprehensive income of individual residents, the taxable income shall be the income after deducting expenses of 60,000 yuan, special additional deductions and other deductions determined according to law.
(2) For the income from wages and salaries of non-resident individuals, the taxable income shall be the balance of monthly income after deducting expenses of 5,000 yuan; Income from labor remuneration, royalties and royalties shall be taxed.
(3) For operating income, the taxable income shall be the balance of the total income in each tax year after deducting costs, expenses and losses.
(four) if the income from property leasing does not exceed 4,000 yuan each time, the 800 yuan shall be deducted; If it exceeds 4,000 yuan, 20% of the expenses will be deducted, and the balance will be taxable income.
(5) For the income from property transfer, the taxable income shall be the balance after deducting the original value of the property and reasonable expenses from the income from property transfer.
(6) Interest, dividends, bonus income and contingent income shall be limited to the taxable income each time.
Income from remuneration for labor services, remuneration for manuscripts and royalties shall be the balance after deducting expenses. The amount of remuneration should be reduced by 70%.
Individuals donate their income to public welfare charities such as education, poverty alleviation and poverty alleviation, and the part of the donation that does not exceed 30% of the taxable income declared by taxpayers can be deducted from their taxable income; If the State Council stipulates that donations to charity should be fully deducted before tax, such provisions shall prevail.
The special deduction specified in item 1 of the first paragraph of this article includes social insurance premiums such as basic old-age insurance, basic medical insurance, unemployment insurance and housing accumulation fund paid by individual residents in accordance with the scope and standards prescribed by the state; Special additional deductions include children's education, continuing education, medical treatment for serious illness, housing loan interest or housing rent, support for the elderly and other expenses. The specific scope, standards and implementation steps are determined by the State Council and reported to the NPC Standing Committee for the record.