Royalty income includes income from providing patent rights, copyrights and other franchise rights to others for use or transfer. Note that income from royalties is different from income from royalties. Income from providing the right to use a copyright does not include income from royalties. 1. What does royalty income include?

Royalty income refers to the income obtained by individuals from providing the right to use patent rights, trademark rights, copyrights, non-patented technologies and other franchises; providing copyright Income from the use rights does not include income from royalties. 2. Standard fee deduction standards for income from franchise royalties:

For income from franchise fees, if the income does not exceed 4,000 yuan per time, 800 yuan will be deducted; If it is more than 4,000, deduct 20% of the expenses, and the balance is the taxable income.

Intermediary fees paid by individuals engaged in technology transfer are allowed to be deducted from their income if valid legal certificates can be provided.

A proportional tax rate of 20 is applicable to royalty income, and the formula for calculating the tax payable is:

Tax payable = Amount of taxable income × applicable tax rate

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For example: Wang transferred one of his patent rights in September 2021 and obtained an income of 50,000 yuan, then:

Taxable income = 50,000 × (1-20) = 40,000 yuan

Tax payable = 40,000 × 20 = 8,000 yuan 3. Royalty income is different from author’s remuneration income

Royalty income is different from author’s remuneration income:

(1) Income from providing the right to use copyrights does not include income from royalties (transfer of copyrights is exempt from business tax).

(2) The income obtained by the author from the public auction (bidding) of the original or copy of the manuscript of his written work is the income from the use of the copyright, so personal income tax should be levied according to the royalty income item. .

(3) The economic compensation income of an individual from obtaining a franchise shall be subject to personal income tax according to the taxable item of "royalty income", and the tax shall be withheld and paid by the unit or individual who pays the compensation.