Trademark royalties are one of the royalties, as defined in Article 20 of the "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China", which refers to the company's provision of patents, non-patented technologies, trademarks Income from the use of rights, copyrights and other franchises shall be recognized based on the date on which the franchisee pays royalties as stipulated in the contract. Trademark right is a legal right of a single nature, also known as trademark exclusive right. It refers to the non-other right of the owner of a legally registered trademark to control its registered trademark and prohibit others from infringing upon it, including the exclusive right of the trademark owner to use its registered trademark. , income rights, disposal rights, renewal rights and rights to prohibit infringement by others, etc. Article 49 of the "Implementation Regulations" stipulates that management fees paid between enterprises, rents and royalties paid between business units within enterprises, and interest paid between business units within non-bank enterprises shall not be deducted. However, the trademark royalties paid by a subsidiary for using the parent company's trademarks are not royalties that cannot be deducted before tax as stipulated in this article. Since the parent company and the subsidiary belong to different independent legal entities and have a controlling and controlled relationship, the price of the trademark usage fee should be determined in accordance with the principle of fair transactions between independent enterprises and treated as a normal enterprise expense for taxation. To sum up, for the trademark usage fees paid by subsidiaries for using the parent company’s trademarks, the parent company should recognize revenue in accordance with the principle of arm’s length transactions between enterprises. As long as the trademark usage fees paid by subsidiaries comply with the regulations between affiliated enterprises, they shall be recognized as revenue. Expenses can be deducted before tax.