Expense deduction standard:
If the royalty income does not exceed 4,000 yuan each time, 800 yuan will be deducted; If it exceeds 4000, 20% of the expenses will be deducted, and the balance will be taxable income.
Intermediary fees paid by individuals in technology transfer are allowed to be deducted from their income if they can provide valid and legal vouchers.
Royalty income is subject to a proportional tax rate of 20%, and the formula for calculating the taxable amount is:
Taxable amount = taxable income × applicable tax rate
For example, in September 2006, Wang granted a patent right and won 50,000 yuan, then:
Taxable income = 50,000× (1-20%) = 40,000 yuan.
Taxable amount = 40,000× 20% = 8,000 yuan
Extended data:
Personal income tax has three different tax rates according to different tax items:
1. Comprehensive income (income from wages and salaries, income from labor remuneration, and income from royalties) shall be taxed at an excessive progressive tax rate of 7 levels, and the taxable income shall be calculated on a monthly basis. The tax rate is classified according to the taxable income of individual monthly wages and salaries, with the highest level being 45%, the lowest level being 3%, and the ***7 level.
2. Operating income is subject to a 5-level excess progressive tax rate. The income from production and operation of individual industrial and commercial households and the annual taxable income from contracted operation and lease operation of enterprises and institutions are classified into grades, with the lowest grade being 5%, the highest grade being 35%, and the first grade being 5.
3. Proportional tax rate. Personal income tax is levied on personal income such as interest, dividends, bonus income, property lease income, property transfer income, accidental income and other income, and the proportional tax rate of 20% is applicable.
Collection management
China's personal income tax is levied by combining source withholding and self-declaration, with the focus on source withholding.
The collection methods of personal income tax can be divided into monthly collection and annual collection Income from production and operation of individual industrial and commercial households, income from contracted operation and lease operation of enterprises and institutions, income from wages and salaries of specific industries and income obtained outside China shall be taxed on an annual basis, and the taxable amount of other income shall be taxed on a monthly basis.
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