The formula for calculating the taxable amount of royalties is:
Taxable amount (within 4000 yuan) = (royalty income -800)×20%
Taxable amount (above 4,000 yuan) = royalty income ×( 1-20%)×20%.
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:
China's "Individual Income Tax Law" stipulates that if the income from royalties obtained by individuals is less than 4,000 yuan each time, the 800 yuan will be deducted, and if it exceeds 4,000 yuan, the expenses will be deducted by 20%, and the balance will be taxed at a proportional rate of 20%.
Royalty refers to the fees paid for the use of patents, trademarks, copyrights or similar exclusive rights owned by other economic units. It is a kind of payment as property income, and it does not belong to the payment of commodity management. The expenses incurred in using the exclusive assets of other units can only be made up by the property income obtained from using the assets.
Royalty income refers to the income obtained by providing patents, copyrights and other franchise rights to others for use or transfer. As the franchise belongs to a kind of property right, it has profit-making effect and can get corresponding remuneration, so the income from royalties should be taxed according to law.
The use of exclusive rights is limited, and enterprises should use these economic rights within the scope permitted by the exclusive owner. If the scope and time limit are exceeded, the user will be punished. However, the expenses incurred in manufacturing proprietary products and using patented methods or trademarks include technical or management services, so they should be registered as the production expenses of products.
References:
Baidu encyclopedia-royalty income