1. What does the trademark use fee mean?
Trademark royalty is a kind of royalty, which is clearly stipulated in Article 20 of the Implementation Regulations. Refers to the income obtained by the enterprise from providing the right to use the trademark, and the realization of the income shall be confirmed according to the date when the user of the commodity right agrees to pay the price of the right to use the commodity in the contract. Trademark right is a single legal right, also known as the non-exclusive right of the owner of a legally registered trademark to control its registered trademark and prohibit others from infringing it, including the right to exclusive use, the right to benefit, the right to dispose of it, the right to renew it and the right to prohibit others from infringing its registered trademark.
Second, can the trademark use fee be deducted before tax?
According to the provisions of Article 49 of the Implementation Regulations, royalties paid between internal business organizations of an enterprise shall not be deducted before tax. Because the enterprise income tax law adopts enterprise income tax, the branches of enterprises are part of the general organization of enterprises, not independent entities, and cannot be used as independent enterprise income tax taxpayers. The unified representative of the head office of an enterprise shall collect and pay taxes.
In the actual business process, due to the needs of management and production and operation, enterprises may adopt relatively independent internal branch management, and branches have relatively independent assets and business scope within the head office of enterprises, which may make these branches provide so-called management services similar to those between independent enterprises, such as paying trademark use fees. However, such business activities between branches within an enterprise belong to internal business activities. When paying enterprise income tax, because they are not independent enterprise income tax payers, they need to pay taxes by enterprises, so the expenses incurred in these internal business transactions are not included in income, but deducted as expenses. In other words, the trademark use fee between the branch and the head office does not need to be included in the income of the head office, and the branch does not need to be included in the expenses, so there is no problem of pre-tax deduction.
It should be noted here that the trademark royalties paid by subsidiaries using the trademark rights of the parent company are not royalties that cannot be deducted before tax as stipulated in Article 49 of the Implementation Regulations. Because the parent company and its subsidiaries belong to different independent legal entities, there is a relationship between control and controlled. The price of trademark use fees shall be determined according to the principle of fair trade between independent enterprises, and shall be treated as normal expenses of enterprises for tax treatment.
To sum up, one of the trademark royalties is trademark royalties, and many people don't know much about trademark royalties. Different categories of goods have different charging standards. And if there is trademark infringement, you can use litigation to protect your rights and interests.