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Does the rental income from franchise rental need to pay VAT?
Business tax shall be levied on the rental income obtained from the lease of patent rights.

According to the tax law, the transfer of ownership and use right of intangible assets is subject to business tax at the rate of 5%. The taxation scope of this tax item (Article 8 of the Notes to the Business Tax Item) includes: transfer of land use right, transfer of trademark right, transfer of patent right, transfer of non-patented technology, transfer of copyright and transfer of goodwill. The transfer of other intangible assets not included in the scope of taxation shall not be taxed according to this tax item for the time being.