Hello, do foreign enterprises have to pay business tax on the income obtained by transferring their patented and non-patented technologies from abroad to China?
Professional answer
Foreign enterprises shall pay business tax on the income obtained by transferring the right to use patented technology and non-patented technology owned by them from abroad to China. According to Article 4 of the Detailed Rules for the Implementation of the Provisional Regulations on Business Tax, the provision of labor services, the transfer of intangible assets or the sale of real estate in People's Republic of China (PRC) as mentioned in Article 1 of the Regulations refers to the transferee of the transferred intangible assets (excluding land use rights) in the territory specified in Item (2). According to Article 11 of the Provisional Regulations on Business Tax: "(1) If China citizens and units or individuals outside China provide taxable services, transfer intangible assets or sell real estate in China, and have no business offices in China, their domestic agents shall be withholding agents; If there is no agent in China, the transferee or the buyer shall be the withholding agent. " In this technology transfer business, the business tax should be paid by the transferee or the buyer.