According to the Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Printing and Distributing the Interpretation of the Agreement and Protocol between the Governments of People's Republic of China (PRC) and Singapore on Avoidance of Double Taxation and Prevention of Fiscal Evasion on Income (Guo Shui Fa [2065438+00] No.75), "Paragraphs 3 and 3 are the definitions of the term" royalties ",which need to be understood from the following aspects:
1. Payment for using or having the right to use related rights.
Royalties should first be related to the use or right to use the following rights: various forms of literature and art that constitute rights and property, and intellectual property rights determined by words and information about industry, commerce and scientific experiments, regardless of whether these rights have been or must be registered in the prescribed departments. It should also be noted that this definition includes both money paid with permission and compensation paid for infringement.
2. Equipment rental
Royalties also include income from using or having the right to use industrial, commercial and scientific equipment, that is, equipment rental. But it does not include the part of the money that the ownership of the equipment involved in the relevant financial lease agreement is finally transferred to the user, and this part of the money is recognized as interest; It also does not include the income obtained from the use of real estate, and the income obtained from the use of real estate is subject to the provisions of the Real Estate Income Agreement.
3. Remuneration for using or having the right to use special technology.
Royalties also include income from using or having the right to use special technologies related to industrial, commercial and scientific experience. Generally speaking, it refers to the undisclosed information or data with proprietary technical nature that is necessary for the production or process reproduction of a product. Royalties related to proprietary technology generally involve that the licensor agrees to license its undisclosed technology to another party so that the other party can use it freely. The technology licensor usually does not personally participate in the specific application of the licensed technology by the technology transferee, nor does it guarantee the implementation results. Licensed technology usually exists, but it also includes technology developed and licensed at the request of the technology transferee. The contract lists restrictions on the use of confidentiality. For example, a company in the United States specially developed a new drug according to the demand of a pharmaceutical company in China, and the United States licensed the drug formula to a company in China to produce new drugs. According to the contract, the United States retains the ownership of the drug formula, while China only has the right to use it and is also responsible for keeping it confidential. Without the consent of the American company, the drug formula shall not be provided to others for use. In this case, the money paid by China Company to obtain the right to use the pharmaceutical formula belongs to the royalty. ......"
Tips: The above instructions are for reference only and do not make any suggestions. If you need to solve specific problems (especially in the fields of law, accounting and medicine), I suggest you consult professionals in related fields in detail.
Response time: 2021-11-19. Please refer to the latest business changes announced by Ping An Bank in official website.