Royalties are operating income

"Patent rights" are granted by the patent registration agency to the inventor or holder to exclusively create, use and transfer technological inventions within a certain period of time. Rights; the so-called "trademark rights" refer to the right to use specific words, names and patterns to identify certain goods; the so-called "copyrights" refer to the creators of books, works of art, and audio-visual products and their authorization The publisher has the right to produce, publish, and distribute the above-mentioned works and copies (excluding royalties); the so-called "non-patented technology" refers to the technology that enjoys a certain value and is used to produce a certain product or a certain process. All technical knowledge, experience and skills required by the technology or their combination, including various design materials, drawings, data, process flows, formulas, etc.

It is important to note that the State Administration of Taxation has clarified in a notice (Guo Shui Han [2009] No. 507) that the following four types of royalties are not royalty fees:

1. It is the remuneration for after-sales service under pure goods trade;

2. It is the remuneration received by the seller for providing services to the buyer during the product warranty period;

3. It is the remuneration for specializing in Payments received from related services provided by professional service organizations or individuals such as engineering, management, and consulting;

4. Other similar remuneration prescribed by the State Administration of Taxation.

Conditions for royalties to be included in the dutiable value of imported goods:

1. Relevant to the assessed goods:

Determine whether a royalty is related to the assessed goods. Regarding the valuation of goods, it mainly depends on the specific payment object, which is a relatively complicated matter. When we analyze the payment relationship between the goods to be valued (tangible goods) and rights, information or services (intangible goods), we should generally grasp a basic principle: whether the importer can obtain tangible goods without purchasing intangible goods. If the answer is yes, it can be determined that the franchise fee has nothing to do with the goods being valued, and they should be valued separately as much as possible; if the answer is no, it can be determined that the franchise fee is related to the goods being valued.

The right to copy imported goods has nothing to do with the goods being valued.

2. As a condition of the sale of the valued goods

3. The buyer pays and is not included in the actual price payable

As the valued goods A condition of sale:

The payment of royalties must be a condition of sale of the valued goods, which is an important criterion for judging whether the fee becomes part of the dutiable value of the valued goods. The sales mentioned here refer to export sales in the importing country. Therefore, after the relevant goods are imported, the royalties incurred when the importer resells the goods in the importing country, even if it becomes a condition of resale, cannot become the duty-paid value. Part of

Legal basis:

In case of any of the following circumstances in Article 10 of the "Personal Income Tax Law", taxpayers shall file tax returns in accordance with the law:

( 1) Obtaining comprehensive income requires settlement and settlement;

(2) Obtaining taxable income does not have a withholding agent;

(3) Obtaining taxable income, there is a withholding obligation The person has not withheld taxes;

(4) Obtained overseas income;

(5) Cancellation of Chinese household registration due to emigration abroad;

(6) Non-resident An individual obtains wages and salary income from two or more places within China;

(7) Other circumstances specified by the State Council.

Withholding agents shall handle withholding declarations for all employees and in full in accordance with national regulations, and provide taxpayers with information on their personal income and withheld taxes.