Royalty income refers to the income obtained by providing patents, copyrights and other franchise rights to others for use or transfer. The income from royalties shall be one-time income from one-time franchise license, and the taxable income shall be the balance after deducting the prescribed fees at a fixed or fixed rate, and the royalty income shall be subject to a proportional tax rate of 20%.
Royalty income is defined as follows:
1. The income from royalties in personal income tax refers to the income obtained by individuals providing the right to use patents, trademarks, copyrights, non-patented technologies and other franchises;
2. The income from providing the right to use copyright does not include the income from remuneration.
Royalty income includes the following contents:
1. Income from providing patents, copyrights and other franchise rights to others for use.
2. Income from the transfer of patents, copyrights and other franchise rights.
3. Royalty income is different from royalty income. The income from providing copyright use rights does not include royalties.
The characteristics of royalties are as follows:
1. The income from providing the right to use copyright does not include the income from remuneration;
2. The income obtained by the public auction of the original or photocopy of the author's written work belongs to the income obtained from the use of copyright, and personal income tax shall be levied according to the items obtained from royalties;
3. When individuals obtain economic compensation income from franchising, they shall pay individual income tax according to the tax items of royalties, and the tax shall be withheld and remitted by the unit or individual who pays compensation.
Legal basis:
Article 8 of the Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China
Forms of personal income, including cash, physical objects, securities and other forms of economic benefits; If the income is in kind, the taxable income shall be calculated according to the price indicated on the obtained certificate. If there is no physical voucher or the price indicated on the voucher is obviously low, the taxable income shall be verified with reference to the market price; If the income is securities, the taxable income shall be verified according to the par price and market price; If the income is other forms of economic benefits, the taxable income should be verified with reference to the market price.