Belongs to royalties

1. For patent rights, many countries only include income from providing others with use as royalties, while income from transferring patent rights is included as royalties. Subject to capital gains tax.

Our country has not levied capital gains tax, so the income obtained by individuals from providing and transferring patent rights is included in the royalties and is subject to personal income tax.

2. Legal basis: "Regulations on the Implementation of the Individual Income Tax Law of the People's Republic of China" (revised on February 18, 2008)

(6) Income from royalties , refers to the income obtained by individuals from providing the right to use patent rights, trademark rights, copyrights, non-patented technologies and other franchises; the income obtained from providing the right to use copyrights does not include income from royalties.

(9) Income from property transfer refers to the income obtained by individuals from the transfer of securities, equity, buildings, land use rights, machinery and equipment, vehicles and ships, and other properties.

Extended information

When transferring patent rights, you should pay attention to the following two issues:

1. The creditor can transfer all or part of the rights in the contract to a third party. Except for one of the following circumstances:

(1) It is not transferable according to the nature of the contract;

(2) It is not transferable according to the agreement of the parties;

(3) Transfer is not allowed in accordance with legal provisions.

If the creditor transfers its rights, it shall notify the debtor. Without notification, the transfer will not be effective against the debtor. The creditor's notice of transfer of rights cannot be revoked except with the consent of the transferee. When a creditor transfers his rights, the transferee acquires the accessory rights to the creditor's rights, except where the accessory rights belong exclusively to the creditor himself.

After the debtor receives the notice of transfer of creditor's rights, the debtor may assert its defense against the transferor against the transferee. When the debtor receives a notice of transfer of creditor's rights, the debtor has creditor's rights against the transferor, and if the debtor's creditor's rights mature before or at the same time as the transferred creditor's rights, the debtor may claim offset against the transferee.

Baidu Encyclopedia - "Regulations on the Implementation of the Individual Income Tax Law of the People's Republic of China"