According to the "Individual Income Tax Law of the People's Republic of China" and its implementation regulations, individuals who provide the right to use trademarks should pay personal income tax at a tax rate of 20% on royalties. Royalty income is income obtained by individuals from providing the right to use patent rights, trademark rights, copyrights, non-patented technologies and other franchises.

If the income obtained by an individual from providing the right to use a trademark is one-time income, the income should be regarded as one-time acquisition. For continuous income from the same project, the income obtained within one month is considered as one time. In the end, the balance of the income from the trademark use rights minus 20% of the expenses is the amount of income.