the current tax laws and regulations stipulate that business tax and enterprise income tax should be levied on the income from the transfer of intangible assets, that is, the transfer of land use rights, patents, non-patented technologies, trademark rights, copyrights and goodwill. However, the provisions of business tax and income tax are different on whether to invest in intangible assets. 1. On the issue of business tax, the company invests in shares with intangible assets. According to Article 8 of the Notice of State Taxation Administration of The People's Republic of China on Printing and Distributing Notes on Business Tax Items (Trial Draft) (Guo Shui Fa [1993] No.149, 1993-12-27), the behavior of investing in shares with intangible assets, participating in the profit distribution of the investor and sharing the investment risks, is not subject to business tax. However, the transfer of equity obtained by investors through investment in intangible assets is still taxed according to the tax item of transfer of intangible assets. The so-called "investment in shares" refers to whether the owners of intangible assets participate in the after-tax profit distribution of the joint venture after investing in intangible assets. If you withdraw the transfer fee or obtain fixed income according to a certain proportion of sales or turnover, and do not bear the investment and operation risks, it is not an investment in shares, but a transfer of intangible assets, and business tax should be levied according to the tax item of transfer of intangible assets. As for the income tax, Article 3 of State Taxation Administration of The People's Republic of China Guo Shui Fa [2] No.118 stipulates that when an enterprise invests in foreign countries with some non-monetary assets from its business activities, it should be decomposed into two businesses, namely, non-monetary assets and investment, which are treated as income tax according to Fair value of sales, and the gains or losses from the transfer of assets should be confirmed according to regulations, and the enterprise income tax should be paid according to law. That is to say, when an enterprise invests in foreign countries with non-monetary assets (such as intangible assets), the value-added part of its fair value is greater than its book value, and the transfer income is regarded as taxable income. The part whose fair value is less than its book value is regarded as transfer loss and deducted before income tax. Therefore, if the intangible assets increase in value or are evaluated when the company invests abroad, the enterprise income tax shall be calculated and paid for the value-added part. As for the accounting treatment during evaluation and investment, it is handled in the following ways: (1) The new Accounting System for Business Enterprises stipulates that the long-term equity investment exchanged by non-monetary transactions shall be regarded as the initial investment cost according to the book value of the exchanged assets plus relevant taxes and fees payable. (1) Borrowing when appraisal value > book value: Long-term investment-equity investment (book value of invested assets+related taxes) Loan: intangible assets (book value) deferred taxes (appraisal value-book value) × tax rate ② Borrowing when appraisal value ≤ book value: Long-term investment-equity investment (book value of invested assets) Loan: intangible assets (book value) (2) If the enterprise implements the old. Value) Loan: intangible assets (book value) deferred tax (fair value-book value) × tax rate = tax capital reserve (fair value-book value-tax) ② Borrowing when evaluating impairment: long-term investment-equity investment (fair value of invested assets) non-operating expenses (book value-fair value) Loan: intangible assets (book value) 2. Individuals use intangible assets. According to the relevant provisions of Article 8 of the aforementioned document No.149 of the State Administration of Taxation [1993], individuals who invest in shares with intangible assets also meet the conditions of exemption from business tax stipulated in this document, so business tax should not be levied on individuals who invest in shares with intangible assets. As for personal income tax. According to State Taxation Administration of The People's Republic of China's Official Reply on Temporary Exemption of Personal Income Tax on Evaluation and Appreciation of Non-monetary Assets (Guo Shui Han [25] No.19, April 13, 25), "Considering the characteristics of personal income tax and the current actual situation of personal income tax collection and management, personal income tax will not be levied for the time being when individuals invest in enterprises after evaluating non-monetary assets." If there is any income when the investment is recovered, transferred or liquidated, personal income tax will be levied according to the regulations, and the original value of the property is the value before the asset appraisal. No personal income tax will be levied on the value-added part of the intangible assets invested by individuals. However, when transferring the equity, the original value of the property as the deduction value of the transfer income can only be based on the pre-evaluation value, but not on the evaluation value. In fact, it means that personal income tax is legally deferred until the transfer of equity.