Legal analysis: According to the provisions of my country's "Personal Income Tax Law", patent compensation fees are subject to personal income tax based on royalties.
Legal basis: Article 2 of the "Individual Income Tax Law of the People's Republic of China" 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 royalties; (4) Income from royalties; (5) Income from operations; (6) Income from interest, dividends, bonuses; (7) Income from property leasing; (8) Income from property transfer; (9) Incidental income. When a resident individual obtains the income from Items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income), personal income tax shall be calculated on a consolidated basis in the tax year; when a non-resident individual obtains the income from Items 1 to 4 of the preceding paragraph, the personal income tax shall be calculated on a monthly or itemized basis. Calculate personal income tax. When taxpayers obtain income from Items 5 to 9 of the preceding paragraph, their personal income tax shall be calculated separately in accordance with the provisions of this Law.