What is the income from the transfer of technology ownership?

The property nature of technology ownership transfer is that the income from property transfer needs to pay personal income tax according to regulations. Moreover, the transfer of technology ownership requires the transferor and the transferee to conclude a transfer agreement according to law, stipulating the transfer price, liability for breach of contract and other important terms.

The cost of transferring technology ownership should be included in non-operating income. Non-operating income is also called "non-operating income". Refers to the income that is not directly related to the production and operation process and should be included in the current profit. It is an integral part of an enterprise's financial performance. For example, confiscate the deposit income of packaging, recover the arrears of transferred employees, fine net income and so on.

Non-operating income is accounted for in "profit" or "profit and loss" accounts. In the "income statement" of an enterprise, non-operating income needs to be listed separately. The funds belonging to the non-operating income of enterprises should be recorded in a timely manner, and are not allowed to be occupied as small items or other expenditures that do not meet the requirements of the system. The accounting of non-operating income of enterprises is carried out under the subject of "non-operating income", and detailed accounts can also be set up under this subject according to various incomes.

Any unit or individual that exploits another person's patent shall conclude an exploitation license contract with the patentee and pay the patentee the royalties. The licensee has no right to allow any unit or individual other than those stipulated in the contract to exploit the patent. Where a unit or individual in China transfers the right to apply for a patent or the patent right to a foreigner, foreign enterprise or other foreign organization, it shall go through the formalities in accordance with the provisions of relevant laws and administrative regulations.

Non-operating income mainly includes: profit and loss of business combination, market profit, accounts payable that cannot be paid due to creditors' reasons, government subsidies, additional return of education fees, fine income, donation income, etc.

legal ground

Article 10 of the Patent Law of People's Republic of China (PRC)

The right to apply for a patent and the patent right can be transferred. Where a unit or individual in China transfers the right to apply for a patent or the patent right to a foreigner, foreign enterprise or other foreign organization, it shall go through the formalities in accordance with the provisions of relevant laws and administrative regulations.

Article 12 of the Patent Law of People's Republic of China (PRC) Any unit or individual who exploits another person's patent shall conclude an exploitation license contract with the patentee and pay the patentee the royalties. The licensee has no right to allow any unit or individual other than those stipulated in the contract to exploit the patent.

Article 2 of the Individual Income Tax Law of People's Republic of China (PRC) shall pay individual income tax:

(1) Income from wages and salaries;

(2) Income from remuneration for labor services;

(3) Income from remuneration;

(4) Income from royalties;

(5) Operating income;

(6) Income from interest, dividends and bonuses;

(7) Income from property lease;

(8) Income from property transfer;

(9) Accidental income.