The value-added tax rate of patent royalties is 6%, and the tax amount to be withheld is equal to the price paid by the recipient divided by (1+ tax rate) multiplied by the tax rate.

According to the relevant policies of the pilot program of "VAT reform", the taxable services of changing business tax into value-added tax include trademark copyright (use fee) transfer services and intellectual property services. Among them, trademark copyright transfer service includes trademark use right transfer service. Therefore, royalties belong to the provision of modern service industry, and the applicable VAT rate is 6%.