Tax payment of patent royalties

Legal analysis: specific analysis of specific circumstances. The value-added tax rate of patent royalties is 6%, and the tax amount to be withheld is equal to the price paid by the recipient divided by (1+ tax rate) multiplied by the tax rate. According to the relevant policies of the pilot program of "VAT reform", the taxable services of changing business tax into value-added tax include trademark copyright (use fee) transfer services and intellectual property services. Among them, trademark copyright transfer service includes trademark use right transfer service. Therefore, royalties belong to the provision of modern service industry, and the applicable VAT rate is 6%.

Legal basis: Article 2 of the Individual Income Tax Law of People's Republic of China (PRC), individual income tax shall be paid for the following personal income: (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.