Q: Due to the needs of business development, our company has transferred the ownership of brand A trademark to Company A in accordance with the law. Can the transferred trademark rights enjoy the VAT exemption?

Answer: According to the "Notice of the Ministry of Finance and the State Administration of Taxation on Comprehensively Launching the Pilot Program of Replacing Business Tax with Value-Added Tax" (Caishui [2016] No. 36) "Provisions on Transitional Policies for the Pilot Program of Replacing Business Tax with Value-Added Tax" "Provides that 1. The following items are exempt from value-added tax: (26) Taxpayers provide technology transfer, technology development and related technical consulting and technical services.

Technology transfer and technology development refer to business activities within the scope of "technology transfer" and "research and development services" in the "Notes on Sales Services, Intangible Assets, and Real Estate".

At the same time, according to the "Explanatory Notes on Sales Services, Intangible Assets, and Real Estate" attached to the "Implementation Measures for the Pilot Program of Replacing Business Tax with Value-Added Tax" No. 36 of Finance and Taxation [2016] No. 36, 2. Sales of intangible assets:

Sales of intangible assets refer to business activities that transfer the ownership or use rights of intangible assets. Intangible assets refer to assets that have no physical form but can bring economic benefits, including technology, trademarks, copyrights, goodwill, natural resource use rights and other equity intangible assets.

Technology, including patented technology and non-patented technology.

To sum up, the transfer of trademark rights does not fall into the category of technology transfer and cannot enjoy the VAT exemption policy.