After deducting business tax from royalties, if the income does not exceed 4,000 yuan each time, 800 yuan will be deducted; If it exceeds 4,000 yuan, 20% of the expenses will be deducted, and the balance will be taxable income. The formula for calculating the taxable amount of royalties is: if the income is less than 4,000 yuan each time, the taxable amount = taxable income× applicable tax rate = (income per time -800) × 20%. If the income is more than 4,000 yuan each time: tax payable = taxable income× applicable tax rate = income per time× (1-20% )× 20%.

Second, analysis

Royalty refers to the fees paid for the use of patents, trademarks, copyrights or similar exclusive rights owned by other economic units. It is a kind of payment as property income, and it does not belong to the payment of commodity management. The expenses incurred in using the exclusive assets of other units can only be made up by the property income obtained from using the assets. However, the expenses incurred in manufacturing proprietary products and using patented methods or trademarks include technical or management services, so they should be registered as the production expenses of products.

3. What is the meaning of royalty?

Royalty refers to any money that people pay for using rights or intangible property (such as information and services). For example, income from individuals providing the right to use patents, trademarks, copyrights, non-patented technologies and other franchises. Before using this right, the non-obligee must obtain the consent of the obligee or pay a certain fee, otherwise it will be regarded as infringement and bear legal responsibility.

Fourth, summary.

Royalty income refers to the income obtained by providing patents, copyrights and other franchise rights to others for use or transfer. As the franchise belongs to a kind of property right, it has profit-making effect and can get corresponding remuneration, so the income from royalties should be taxed according to law.