What is the basis for paying personal income tax on the income from patent remuneration?

According to the provisions of China's individual income tax law, patent compensation fees are subject to individual income tax based on royalties.

General taxpayers enjoy the following benefits:

1. General taxpayers can issue special invoices and VAT invoices;

2. General taxpayers have standardized financial, taxation and management requirements and high requirements for financial personnel, which can reduce business risks and tax-related risks;

Ordinary taxpayers can prove the strength of the company and cooperate with larger companies. Usually, large companies are ordinary taxpayers, so their business is easy to grow;

4. Ordinary taxpayers can get the VAT input ticket deduction, and the tax burden is reasonable. The business with low Mao Lijiao can also be done, and the business is easy to expand.

To sum up, China's collection of individual income tax in accordance with international tax practices is not only conducive to safeguarding China's rights and interests, but also conducive to studying and correctly handling international double taxation and tax credits in accordance with the principle of equality and mutual benefit; It is conducive to the rational adjustment of income and the development of international economic cooperation and technical exchanges on the basis of equality and mutual benefit. The salary of individuals in China is relatively low, but with the continuous development of the economy, various incomes of individuals will continue to increase.

Legal basis:

Article 2 of the Individual Income Tax Law of People's Republic of China (PRC)

The following personal income shall be subject to personal 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.

Individual residents who obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax according to the tax year; Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly or itemized basis. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.