Science and technology enterprises generally have their own core technologies, such as the patent ownership of a product, so how to collect enterprise income tax on the income from technology transfer?

Is enterprise income tax levied on the income from technology transfer?

Technology transfer income enjoys preferential treatment of exemption or reduction of enterprise income tax.

According to Article 27 of the Enterprise Income Tax Law of People's Republic of China (PRC), the enterprise income tax may be exempted or reduced for the following income: (4) Income from qualified technology transfer.

According to Article 90 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC), the income from qualified technology transfer mentioned in Item (4) of Article 27 of the Enterprise Income Tax Law is exempt from enterprise income tax, which means that the income from technology transfer of resident enterprises does not exceed 5 million yuan in a tax year. For the part exceeding 5 million yuan, the enterprise income tax will be levied by half.

According to the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Extending the Pilot Tax Policy of National Independent Innovation Demonstration Zone to the Nationwide Implementation (Caishui [20 15] 1 6No.), the national resident enterprises have been transferred for 5 years from 2015 to1. The part where the annual technology transfer income of resident enterprises does not exceed 5 million yuan shall be exempted from enterprise income tax; For the part exceeding 5 million yuan, the enterprise income tax will be levied by half.

Therefore, qualified technology transfer, the part of which the annual technology transfer income does not exceed 5 million yuan, is allowed to be exempted from enterprise income tax; For the part exceeding 5 million yuan, the enterprise income tax is allowed to be levied by half.

How to understand qualified technology transfer?

According to the relevant provisions 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 Enterprise Income Tax Policies for Technology Transfer of Resident Enterprises (Caishui [2010]11), technology transfer refers to the transfer of patented technology, computer software copyright, layout design right of integrated circuits, new plant varieties, new biomedical varieties and the Ministry of Finance of People's Republic of China (PRC).

Accounting entries of technology transfer income

1. When transferring technology:

Debit: bank deposit

accumulated amortization

Provision for impairment of intangible assets

Loan: intangible assets

Asset disposal gains and losses/non-operating income

2, after the technology transfer, product sales into income, make the following entries:

Borrow: bank deposits, etc.

Loans: other business income