When transferring the right to use assets, the realization of income shall be confirmed according to the effective interest rate method in terms of tax treatment, interest income, interest income obtained by enterprises holding long-term bonds due or issuing long-term loans, etc. Royalty income shall be recognized according to the date when the concessionaire pays the royalties as agreed in the contract.
The transfer of patent ownership is actually the transfer of the right to use assets, which will generate rental income. Income from royalties corresponding to Item (7) of Article 6 of the Enterprise Income Tax Law; Royalty income stipulated in the tax law refers to the income obtained by enterprises from providing the right to use patents, non-patented technologies, trademarks, copyrights and other franchises.