1. Royalty refers to the income obtained by individuals from providing franchise rights such as patents, trademarks, copyrights and non-patented technologies. The income from providing the right to use copyright does not include the income from remuneration. Patent right is the exclusive right granted by the state patent authority to the patent applicant or his successor to exploit his invention and creation within a certain period of time. For patent rights, many countries will only provide them for others to use. The income obtained is included in the royalty, while the income from the transfer of patent rights is listed as the tax object of capital gains tax. There is no capital gains tax in China, so the income from providing or transferring patent rights to individuals is included in the income from royalties and personal income tax is levied. Trademark right refers to the exclusive right to use a trademark enjoyed by a trademark registrant. Copyright, that is, copyright, is the author's exclusive right to literary, artistic and scientific works according to law. Individuals who provide or transfer trademark rights, copyrights, know-how or know-how shall pay personal income tax according to law.
Two. Calculation of taxable income
After deducting business tax from royalties, if the income does not exceed 4,000 yuan each time, 800 yuan will be deducted; If it exceeds 4,000 yuan, 20% of the expenses will be deducted, and the balance will be taxable income.
Three. Calculation of Taxable Amount of Royalty Income The formula for calculating the Taxable Amount of Royalty Income is: (1) Taxable amount of each income less than 4,000 yuan = taxable income × applicable tax rate = (each income -800) × 20%.
Article 3 of the Individual Income Tax Law of People's Republic of China (PRC):
(1) For comprehensive income, the excess progressive tax rate of 3% to 45% is applicable (the tax rate table is attached);
(2) For operating income, the excess progressive tax rate of 5% to 35% shall apply (the tax rate table is attached);
(3) Income from interest, dividends and bonuses, income from property leasing, income from property transfer and accidental income shall be subject to the proportional tax rate of 20%.