Royalty is a kind of payment as property income, not a payment for commodity management. The expenses incurred in using the exclusive assets of other units can only be made up by the property income obtained from using the assets. However, the expenses incurred in manufacturing proprietary products and using patented methods or trademarks include technical or management services, so they should be registered as the production expenses of products. The use of exclusive rights is limited, and enterprises should use these economic rights within the scope permitted by the exclusive owner. If the scope and time limit are exceeded, the user will be punished.
Standard expense deduction standard for franchise royalties:
If the royalty income does not exceed 4,000 yuan each time, 800 yuan will be deducted; If it exceeds 4000, 20% of the expenses will be deducted, and the balance will be taxable income.
Intermediary fees paid by individuals in technology transfer are allowed to be deducted from their income if they can provide valid and legal vouchers.
Royalty income is subject to a proportional tax rate of 20%, and the formula for calculating the taxable amount is:
Taxable amount = Zen taxable income × applicable tax rate
For example, in September of 20021year, Wang granted the patent right and made a profit of 50,000 yuan, then:
Taxable income = 50,000× (1-20%) = 40,000 yuan.
Taxable amount = 40,000× 20% = 8,000 yuan
I hope the above content can help you. Please consult a professional lawyer if you have any other questions.
Legal basis: Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China
Article 6 The scope of personal income as stipulated in the Individual Income Tax Law:
(1) Income from wages and salaries refers to wages, salaries, bonuses, year-end salary increase, labor dividends, allowances, subsidies and other income related to employment.
(2) Income from remuneration for labor services refers to income obtained by individuals from engaging in labor services, including design, decoration, installation, drawing, testing, medical treatment, law, accounting, consulting, lecturing, translation, manuscript review, painting and calligraphy, sculpture, film and television, audio and video recording, performance, performance, advertisement, exhibition, technical service, introduction service and brokerage service.
(3) The term "income from royalties" refers to the income obtained by individuals from publishing their works in the form of books, newspapers and periodicals.
(4) Income from royalties refers to income obtained by individuals from providing patents, trademarks, copyrights, the right to use non-patented technologies and other franchises; The income from providing the right to use copyright does not include the income from remuneration.
(5) Operating income refers to:
1。 Income obtained by individual industrial and commercial households engaged in production and business operations, and income obtained by investors of sole proprietorship enterprises and individual partners of partnership enterprises engaged in production and business operations of sole proprietorship enterprises and partnership enterprises registered in China;
2。 Income obtained by individuals engaged in paid service activities such as running schools, medical care and consulting according to law;
3。 Income obtained by individuals from contracting, leasing, subcontracting and subletting enterprises and institutions;
4。 Income obtained by individuals from other production and business activities.
(6) Income from interest, dividends and bonuses refers to income from interest, dividends and bonuses obtained by individuals with creditor's rights and equity.
(7) Income from property leasing refers to income obtained by individuals from renting real estate, machinery and equipment, vehicles, boats and other property.
(8) The term "income from property transfer" refers to the income obtained by individuals from the transfer of securities, stock rights, partnership property shares, real estate, machinery and equipment, vehicles, boats and other property.
(9) Accidental income refers to personal winning prizes, winning prizes, winning lottery tickets and other accidental income.
If it is difficult to define taxable income items for personal income, it shall be determined by the competent tax authorities in the State Council.