Legal Basis: Announcement on Issues Related to Enterprise Income Tax on Technology Transfer of Licensed Use Right Article 1 From 20151kloc-0/,the income from technology transfer obtained by non-exclusive licensing rights transferred by resident enterprises nationwide for more than five years (inclusive, the same below) shall be included in the income range of technology transfer enjoying preferential corporate income tax. The part where the annual technology transfer income of resident enterprises does not exceed 5 million yuan shall be exempted from enterprise income tax; For the part exceeding 5 million yuan, the enterprise income tax will be levied by half. The technologies referred to include patents (including national defense patents), computer software copyrights, exclusive rights in layout design of integrated circuits, new varieties of plants, new varieties of biomedicine and other technologies determined by the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China. Among them, patents refer to inventions, utility models and designs that do not simply change the patterns and shapes of products.