Is the brand royalty fee a franchise utility fee? How to pay tax? What is the tax rate? How to handle the accounting? As an accountant, do you understand these issues clearly? Today, Shenzhen The editor of Kongwang is here to talk to you in detail about how to pay taxes on brand usage fees? How to do accounting processing?
How to pay taxes on brand usage fees?
Answer: Brand usage fees are franchises Royalty fees are subject to business tax, with a tax rate of 5% applicable.
Relevant knowledge extension:
According to the relevant provisions of Article 20 of the "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China", for royalties income, it is also available It is the royalty income stipulated in Article 6 (7) of the Enterprise Income Tax Law. It specifically refers to the corresponding income obtained by an enterprise from providing the right to use patent rights, copyrights, trademark rights, non-patented technologies and other franchises.
The realization of the income from royalties shall be recognized according to the date on which the franchisee pays the royalties as stipulated in the contract.
According to the provisions of Article 49 of the "Regulations on the Implementation of the Enterprise Income Tax Law of the People's Republic of China": Management fees are paid between enterprises, while rents and royalties belong to intra-enterprise operations. Interest paid between institutions and between business institutions within non-bank enterprises shall not be deducted.
How to handle the accounting treatment of brand usage fees?
For the accounting processing of brand usage fees, accountants should handle it separately according to different situations:
First , assuming that the charge is based on the quantity used, it should be included in the product cost.
Second, assuming it is in the form of authorization, it can be included in intangible assets and amortized.
Third, if the amount of brand usage fee is relatively small, it can be included in the management fee.