Share tax on individual patent evaluation
According to Article 1 of the Notice of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China of the Ministry of Finance on Individual Income Tax Policies for Personal Non-monetary Assets Investment (Caishui [2015] No.41), individuals investing in non-monetary assets belong to the simultaneous transfer of non-monetary assets and investments. Income from the transfer of non-monetary assets by individuals shall be accounted for and paid according to the item of "income from property transfer".
According to Article 1 of the Announcement of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on the Collection and Management of Personal Income Tax on Personal Non-monetary Assets Investment (State Taxation Administration of The People's Republic of China Announcement No.2015), personal income tax on non-monetary assets investment is paid by individuals who invest in non-monetary assets and obtain the equity of the invested enterprise.
Therefore, if the above shareholders want to buy shares with their own patented technology, they should pay personal income tax on the income from the change of ownership of patented technology after investment.
According to the provisions of Article 3 above, if taxpayers have difficulty in paying taxes in one lump sum, they can reasonably determine the installment payment plan and report it to the competent tax authorities for the record, and pay individual income tax in installments within no more than five calendar years (inclusive) from the date of the above taxable behavior.
What subjects does patented technology include?
Patented technology belongs to
invisible assets
. Intangible assets refer to identifiable non-monetary assets that have no physical form and are owned or controlled by enterprises. Intangible assets mainly include patent right, non-patented technology, trademark right, copyright, land use right, franchise and so on.