What does royalty mean in our country?

Most people will not come into contact with franchising in their lives, but when enterprises cooperate with each other in business dealings, it is inevitable that there will be patent-related transactions or franchising of some business secrets, but there will be charges when granting franchising to the other party, because franchising is an intangible asset income for the company. Many people in life don't know what royalty means in our country. 1. What does the royal family mean in China? Royalty refers to the fees paid for the use of patents, trademarks, copyrights or similar exclusive rights owned by other economic units. It is a kind of payment as property income, and it does not belong to the payment of 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 patented products, patented methods or using trademarks include technical or management services, so they should be recorded 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. Ii. Scope of royalties (1) It is particularly important to note that in the form of notice (Guo [2009] No.507), State Taxation Administration of The People's Republic of China has defined the following four types of royalties, which are not royalties: 1, and are after-sales service rewards under the simple trade of goods; 2. It is the remuneration obtained by the seller for providing services to the buyer during the product warranty period; 3. It refers to the money obtained by institutions or individuals specializing in engineering, management, consulting and other professional services to provide related services; 4. Other similar remuneration stipulated by People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China. It can be seen that the definition of royalties is still basically limited to all kinds of licensing income related to intellectual property rights. (2) Application of Franchise Article 8 (3) of the Agreement stipulates: "As a condition for the sale of the appraised goods, the buyer must directly or indirectly pay the royalties related to the appraised goods, as long as the royalties are not included in the paid or payable price", and the royalties should be included in the dutiable price. Conditions for the royalty to be included in the customs value of imported goods: 1. Related to the expected goods: it is a complex problem to determine whether the royalties are related to the expected goods. When we analyze and estimate the payment relationship between goods (tangible goods) and rights, information or services (intangible goods), we generally have to grasp a basic principle: whether importers can get tangible goods without buying intangible goods. If the answer is yes, then it can be concluded that royalties have nothing to do with the estimated goods and should be priced separately as far as possible; If the answer is no, it can be concluded that the royalty is related to the estimated goods. The right to copy imported goods has nothing to do with the estimated goods. 2. As a condition for selling the appraised goods. 3. As a condition of selling the appraised goods, the payment of royalties must be a condition of selling the appraised goods, which is an important criterion to judge whether the royalties become part of the customs value of the appraised goods. The sales mentioned here refer to the export sales of the importing country. Therefore, after the goods are imported, the royalties generated by the importer when reselling the goods in the importing country, even if they become the conditions for resale, cannot become part of the duty-paid price. For example, if there is a novel published by the company itself, it is necessary to have absolute copyright on the novel. If other film and television organizations want to use it, they need to pay a certain fee to the unit, which is royalties. In addition, the scope of royalties and the related use of concessions in China are very clear.