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Q：
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What is royalty income?
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A：
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Royalty income refers to the income obtained by individuals from providing the right to use patents, trademarks, copyrights, non-patented technologies, and other licenses.
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Q：
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Does the income from author's remuneration belong to the income obtained from providing the right to use copyright?
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A：
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The income obtained from providing the right to use copyright does not include income from author's remuneration.
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Q：
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Who is the tax withholding agent for royalty income?
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A：
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Refers to the company or individual that pays the income to the individual. The withholding agent shall handle the full withholding declaration for all employees in accordance with the law.
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Q：
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What is full withholding declaration for all employees?
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A：
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The withholding agent shall submit to the competent tax authority within 15 days of the month following the withholding of the tax, relevant information about all individuals who have received the income, the amount of income received, the deduction items and amounts, the specific amount and total amount of the withheld tax, and other tax related information and materials.
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Q：
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How should withholding agents withhold and prepay taxes when paying royalty income?
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A：
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When the withholding agent pays the royalty income to individual residents, they shall withhold and prepay the tax according to the following methods:
The royalty income is the balance amount after deducting expenses from the income.
If the royalty income does not exceed 4000 yuan per transaction, the deduction of fees shall be calculated at 800 yuan; For each income of more than 4000 yuan, the deduction of expenses shall be calculated at 20% of the income.
The royalty income shall be calculated based on the amount of each income as the pre withheld and pre-paid taxable income to calculate the amount of pre withheld and pre-paid tax. The royalty income is subject to a 20% withholding rate.
When withholding agents pay royalties to non-resident individuals, they shall withhold and pay taxes on a monthly or per transaction basis according to the following methods:
The royalty income of non-resident individuals shall be subject to taxation based on the amount of each income, and the income shall be the balance after deducting 20% of expenses from the income.
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FAQ
