Article 3 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Perfecting the Income Tax Policy on Equity Incentives and Technology Shares (Caishui [20 16]10/No.) stipulates that from September 2016, individuals will invest in domestic resident enterprises with technological achievements, and all the consideration paid by the invested enterprises will be shares. If the deferred tax policy is chosen for the investment in technological achievements, the tax may not be paid in the current period of investment and shareholding after filing with the competent tax authorities. When deferred to share transfer is allowed, the income tax shall be calculated and paid according to the difference between the original value of technological achievements and reasonable taxes and fees.
Technological achievements refer to patented technology (including national defense patents), computer software copyright, exclusive right of integrated circuit layout design, new plant variety right, new biomedical varieties, and other technological achievements recognized by Ministry of Science and Technology, Ministry of Finance and State Taxation Administration of The People's Republic of China of the People's Republic of China. Shares in technological achievements refer to the behavior that taxpayers transfer the ownership of technological achievements to the invested enterprise and obtain the shares (rights) of the enterprise.
Therefore, individuals who invest in enterprises with patent rights should pay a tax according to the "income from property transfer". 1, 20 16 September, personal income tax shall be calculated and paid according to the "income from property transfer" in the current investment period; From September, 20 16, after filing with the competent tax authorities, the investment in shares can be temporarily exempted from tax, and when it is allowed to be deferred to the equity transfer, the income tax will be calculated and paid according to the difference between the original value of the technological achievements and the reasonable tax.