Legal subjectivity:

Tax planning for royalties is of great significance to those engaged in high-tech research, invention and creation. Therefore, we should consider the long term and carry out comprehensive planning. Royalty income refers to the income obtained by individuals from providing the right to use patent rights, trademark rights, copyrights, non-patented technologies, and other franchises. This aspect of tax planning is of great significance to those engaged in high-tech research, invention and creation. Solution example: A scientific researcher invented a new technology, which has obtained a national patent, and the patent rights are owned by individuals. If you simply transfer it, you can get a transfer income of 800,000 yuan; if you convert the patent into a share investment and let it own the "equity" with the same price, you can get a dividend income of 80,000 yuan that year. What approach should the researcher take? Option 1: Simply transfer the patent. First of all, according to the relevant regulations on business tax, the transfer of patent rights is the transfer of intangible assets, and business tax should be paid. The tax rate is 5, and the amount of business tax payable is: 80×5=4 (ten thousand yuan). Therefore, after paying the business tax, the person's actual income is: 80-4=76 (ten thousand yuan). Urban construction tax and education surcharge should be levied according to business tax, but due to their small amount, they are ignored here. Secondly, according to the relevant provisions of the Personal Income Tax Law, the transfer of patent rights is royalty income and personal income tax should be paid. Royalty income is taxable income based on the balance of the individual's income, fixed amount or fixed rate minus prescribed expenses each time. Because the person's one-time income has exceeded 4,000 yuan, an expense of 20 should be deducted, so the personal income tax payable is: 76 × (1-20) × 20 = 12.16 (ten thousand yuan). The actual income from paying personal income tax is: 76-12.16=63.84 (ten thousand yuan). Taking the two taxes together, the person paid a tax of 161,600 yuan (4 12.16), and the actual income was 638,400 yuan. Option 2: Convert patents into shares and own equity. First, in accordance with the relevant regulations on business tax, no business tax will be levied on the behavior of investing in intangible assets as shares, participating in the profit distribution of investors, and jointly bearing investment risks. Since scientific researchers convert patents into share investments and own the company's equity, the income realized from this equity is uncertain and there are risks. It is an investment in intangible assets and is exempt from business tax. Therefore, the researcher does not need to bear the business tax of 40,000 yuan. Secondly, the Personal Income Tax Law stipulates that dividends and dividends obtained from equity ownership shall be subject to personal income tax at a proportional rate of 20%. Then, the personal income tax payable that year is: 8×20=16,000 yuan. The after-tax income is: 8-1.6=6.4 (ten thousand yuan). Through patent investment, you only need to pay taxes of 16,000 yuan that year. If you can get dividend income of 80,000 yuan every year, then after 10 years of operation, you can recover all the transfer income and get 800,000 yuan of shares. Analysis of pros and cons The pros and cons of the two options are obvious. Option 1, there is no risk. After paying taxes, you can actually have personal income. But it is a one-time income, the tax burden is too heavy, and the income is fixed, with no hope of appreciation. Although option two pays less tax and has the possibility of appreciation, it is also risky and uncertain. If you hope that this patent can bring benefits for a long time, or if the researcher wants to change the working environment to maximize personal value, it is better to choose investment and management. Here, there are two types of investment operations: one is partnership, where one party provides patented technology and the other party provides funds to establish a joint-stock enterprise. As long as both parties agree in advance on the proportion of the patent rights to the shares of the company, then the profits can be distributed according to the number of shares of the company that each holds. For example, in the second option in the case, the patent rights are converted into shares of 800,000 yuan, then the 800,000 yuan will be allocated to the product cost during the operating period and recovered through product sales. Then, the scientific researcher only needs to bear the amount of tax on investment dividends, and the stock does not need to bear tax before it is transferred. In this way, you can also get income from corporate profits or capital allotment. The tax burden required here is limited.

Therefore, obtaining both patent income and operating income through patents has a lighter tax burden than pure patent transfer. The other is personal investment in building a factory and operating it. This method is to obtain income from selling products after investing in building a factory. Since most newly-established enterprises can enjoy certain tax reductions and exemptions, and the patent rights are not transferred, they do not have to pay taxes on the patent separately in the income obtained. Therefore, the only tax burdens to be borne are turnover tax, corporate income tax, payroll tax, etc. Comparing income with tax burden is bound to be better than the personal income tax paid on pure patent transfer income. In addition, it should be noted that patent rights should be granted by the national competent authority in accordance with the law to the patent applicant or his successor, the exclusive right to implement his invention and creation within a certain period of time. To sum up, tax planning for royalties should be based on long-term considerations and comprehensive planning.