However, investors who invest in patented technology will also involve income tax and value-added tax.
Patent technology investment is regarded as the transfer of intangible assets, and income tax needs to be calculated according to the evaluation value and book value.
Article 27 Mode of Contribution Shareholders may make contributions in cash, or in kind, intellectual property rights, land use rights and other non-monetary properties that can be valued in money and transferred according to law; However, except for the property that cannot be used as capital contribution as stipulated by laws and administrative regulations.
Non-monetary property as capital contribution shall be evaluated and verified, and its value shall not be overestimated or underestimated. Where there are provisions in laws and administrative regulations on evaluation and pricing, those provisions shall prevail.
20 16 "measures for the implementation of the pilot reform of business tax to value-added tax"
Article 1 Units and individuals that sell labor services, intangible assets or real estate (hereinafter referred to as taxable activities) within the territory of People's Republic of China (PRC) (hereinafter referred to as the territory) are VAT taxpayers, and shall pay VAT in accordance with these Measures without paying business tax.
Article 15 VAT rate:
(a) taxpayers engaged in taxable activities, the tax rate is 6%, except as stipulated in items (2), (3) and (4) of this article.
(2) Providing transportation, postal services, basic telecommunications, construction and real estate leasing services, selling real estate and transferring land use rights at the tax rate of 1 1%.
(3) Providing tangible movable property leasing services at the tax rate of 17%.
(4) Cross-border taxable acts of domestic units and individuals, with a tax rate of zero. The specific scope shall be stipulated separately by the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China.