1, according to the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Implementing the Decision of Central the State Council on Strengthening Technological Innovation and Developing High-tech to Realize Industrialization (Caishuizi [1999] No.273);
Income obtained by units and individuals (including foreign-invested enterprises, research and development centers established with foreign investment, foreign enterprises and foreign individuals) engaged in technology transfer and technology development business and related technical consulting and technical services business shall be exempted from business tax.
2, the taxpayer's technology transfer, technology development written contract should be identified to the provincial department of science and technology, and the identified contract and related documents and materials submitted to the competent local tax bureau for future reference. The local taxation bureau in charge shall inspect the technology transfer and technology development contracts declared by taxpayers to enjoy tax reduction or exemption from time to time, cancel the preferential tax policies for units and individuals that do not meet the conditions for tax reduction or exemption, recover the tax reduction or exemption, and punish them in accordance with the relevant provisions of the People's Republic of China (PRC) Tax Collection and Management Law.
3, unregistered and unregistered technology contracts, shall not enjoy the preferential policies of the state on promoting the transformation of scientific and technological achievements, such as tax, credit and incentives.
The parties to a recognized and registered technology contract may apply to the competent tax authorities with the certificate of recognition and registration, and enjoy the preferential tax policies stipulated by the state after examination and approval.
Two, a part of the invention patent transfer fee paid to employees belongs to the employee's "salary income", and personal income tax shall be paid at the progressive tax rate of salary income.