Royalty income is one of the comprehensive incomes. Comprehensive income obtained by resident individuals shall be calculated on a consolidated basis in the tax year; personal income tax shall be calculated on a monthly basis for non-resident individuals obtaining income from Items 1 to 4 of the preceding paragraph. Or calculate personal income tax on an itemized basis.
Contents included in comprehensive income
The following income items 1 to 4 obtained by resident individuals are comprehensive income, specifically:
(1) Wages , Salary income;
(2) Income from labor remuneration;
(3) Income from royalties;
(4) Income from royalties;
Calculation of taxable income from royalties
According to Article 6 of the "Individual Income Tax Law of the People's Republic of China":
(1) Resident individuals The taxable income is the balance after deducting RMB 60,000 in expenses, special deductions, special additional deductions and other deductions determined in accordance with the law from the income in each tax year.
(2) For wages and salaries of non-resident individuals, the balance after deducting RMB 5,000 in expenses from the monthly income shall be the taxable income; income from remuneration for services, income from author remuneration, and royalties Income, the amount of each income is the taxable income.
Income from labor remuneration, author remuneration, and royalties shall be the balance after deducting 20% ??of the expenses.
How to pay personal income tax on the compensation income from patents obtained by individuals?
The economic compensation income obtained by individuals from franchises shall be subject to personal income tax according to the taxable items of royalties.
What items of personal income tax will be levied when the author auctions the original manuscript of his written work?
The income obtained by the author from the public auction (bidding) of the original or copy of the manuscript of his own written work shall be based on the following items: Personal income tax is levied on royalties.
If an individual obtains income from auctioning a novel manuscript, should he pay personal income tax according to the royalty income item?
If the author auctions the original or copy of the manuscript of his written work, Income is subject to personal income tax according to the "royalty" income item and is incorporated into comprehensive income for annual calculations.
Will the script royalties obtained by the script author be subject to personal income tax as a royalty income item?
For the script royalties obtained by the script author from the production units of movies and TV series, they will no longer be subject to personal income tax. Distinguish whether the user of the script is the unit where he or she works, and personal income tax will be uniformly calculated based on the royalties.