Article 59: Profits, interest, rent, royalties and other income mentioned in paragraph 1 of Article 19 of the Tax Law shall be calculated based on the full amount of income unless otherwise provided by the state. Amount of tax payable.
Full royalties for providing patent rights and proprietary technologies, including related drawings and materials fees, technical service fees and personnel training fees, as well as other related fees.
Article 60 The profits mentioned in Article 19 of the Tax Law refer to the income obtained from the right to share profits based on investment proportion, equity, shares or other non-creditor relationships.
Article 61: Other income mentioned in Article 19 of the Tax Law includes income obtained from the transfer of houses, buildings and their ancillary facilities, land use rights and other properties within the territory of China.
The income mentioned in the preceding paragraph refers to the balance of the transfer income minus the original value of the property. If a foreign enterprise cannot provide correct proof of the original value of its property, the local tax authorities will assess the original value of its property based on the specific circumstances.
Article 62 The amount of payment mentioned in paragraph 2 of Article 19 of the Tax Law refers to the amount of cash payment, remittance payment, transfer payment, and payment using non-monetary assets or equity discounts amount.
Article 63 The profits obtained from foreign-invested enterprises as mentioned in Item (1) of Article 19, Paragraph 3 of the Tax Law refer to the profits obtained from foreign-invested enterprises after paying or reducing or reducing income tax in accordance with the provisions of the tax law. income from profits.
The international financial organizations mentioned in Item (2) of Article 19, Paragraph 3, Article 64 of the Tax Law refer to the International Monetary Fund, the World Bank, the Asian Development Bank, the International Development Association, International financial organizations such as the International Fund for Agricultural Development.
Article 65 The State Bank of China mentioned in items (2) and (3) of paragraph 3 of Article 19 of the Tax Law refers to the People’s Bank of China, the Industrial and Commercial Bank of China, and the Agricultural Bank of China. Banks, Bank of China, People's Construction Bank of China, Bank of Communications, China Investment Bank and other financial institutions approved by the State Council that operate foreign exchange deposits and other credit businesses.
The scope of the reduction and exemption from income tax on royalties stipulated in Item (4) of Article 19, Paragraph 3, Article 66 of the Tax Law is as follows:
( 1) Royalties collected for providing the following proprietary technologies in the development of agricultural, forestry, animal husbandry and fishery production:
1. Technology to improve soil and grassland, develop barren hills, and make full use of natural resources;
2. Technology for cultivating new varieties of animals and plants and producing high-efficiency and low-toxic pesticides;
3. Technology for scientific production management of agriculture, forestry, animal husbandry and fishery, maintaining ecological balance, and enhancing the ability to resist natural disasters.
(2) Royalties collected for conducting or cooperating in scientific research, scientific experiments, and providing proprietary technology for the Academy of Sciences, universities and other scientific research institutions.
(3) Royalties collected for providing proprietary technologies in the development of energy and transportation.
(4) Fees collected for the use of proprietary technologies provided in energy conservation and environmental pollution prevention.
(5) Royalties collected for providing the following proprietary technologies in the development of important scientific and technological fields:
1. Major advanced mechanical and electrical equipment production technology;
2. Nuclear energy technology;
3. Large-scale integrated circuit production technology;
4. Optical integration, microwave semiconductor and microwave integrated circuit production technology and microwave electron tube manufacturing technology;
5. Ultra-high-speed electronic computers and microprocessor manufacturing technology;
6. Optical communication technology;
7. Long-distance ultra-high voltage DC transmission technology;
8. Coal liquefaction, gasification and comprehensive utilization technology.
Article 67 For the income of foreign enterprises engaged in construction, installation, assembly, exploration and other engineering operations and providing consulting, management, training and other labor services in China, the tax authorities may specify the project price or labor service fees. The payer is the withholding agent for income tax.