How to make accounting entries when selling intangible assets? What is the applicable tax rate?

The scope of intangible assets sold by enterprises includes patented technology, non-patented technology, trademarks, copyrights, etc. How to make accounting entries when selling intangible assets? What is the applicable tax rate?

Accounting entries for the sale of intangible assets

When an enterprise sells intangible assets, the difference is included in the asset disposal profit and loss (difference = the price obtained from the sale-book value-sales-related taxes and fees), and the corresponding accounting entries are as follows:

Debit: bank deposit

accumulated amortization

Provision for impairment of intangible assets

Loan: intangible assets

Taxes payable-VAT payable (output tax)

Profit and loss from asset disposal

Non-operating expenses-disposal of non-current assets losses

What is the applicable tax rate for selling intangible assets?

1. When an enterprise sells intangible assets, if the intangible assets belong to patented technology or non-patented technology, it can be exempted from value-added tax;

2. If the intangible assets sold by the enterprise belong to the category of land use right, the value-added tax shall be calculated and paid according to the tax rate of 1 1%;

3. For the disposal of other intangible assets, the tax rate of 6% is applicable when calculating and paying VAT;

4. If the enterprise is a small-scale taxpayer, the value-added tax shall be determined according to the simple taxation method, and the applicable tax rate is 3%.

What does it mean to sell intangible assets?

The sale of intangible assets refers to the business activities of transferring the ownership or use right of intangible assets. Among them, intangible assets include assets that do not have physical form but can bring economic benefits, that is, intangible assets such as technology, trademarks, copyrights, goodwill, natural resource use rights and other rights and interests.

The technology here refers to patented technology and non-patented technology; The right to use natural resources includes land use right, sea area use right, exploration right, mining right, water intake right and other natural resources use rights; Other rights and interests of intangible assets include the right to operate infrastructure assets, franchise rights of public enterprises, distribution rights, membership rights, domain names, name rights, portrait rights and so on.

How to make accounting entries when disposing of intangible assets?

Accounting entries for purchasing intangible assets

Borrow: intangible assets

Taxes payable-VAT payable-input tax.

Loans: bank deposits