The domestic factory pays the overseas parent company the trademark use fee, and the trademark use contract has been registered, and the goods used by the factory for export and domestic sales have been withheld and remitted the corresponding taxes when paying the use fee.

When calculating enterprise income tax, the Regulations for the Implementation of the Enterprise Income Tax Law shall apply.

Article 8 stipulates that reasonable expenses related to income actually incurred by an enterprise, including costs, expenses, taxes, losses and other expenses, are allowed to be deducted when calculating taxable income.

Paragraph 1 of Article 41 stipulates that if the business dealings between an enterprise and its related parties do not conform to the principle of independent transactions, and the taxable income or income of the enterprise or its related parties is reduced, the tax authorities have the right to make adjustments in a reasonable way.

Article 47 stipulates that if an enterprise reduces its taxable income or income by implementing other arrangements that have no reasonable commercial purpose, the tax authorities have the right to make adjustments in a reasonable way.

Article 111 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that the reasonable methods mentioned in Article 41 of the Enterprise Income Tax Law include:

(1) Comparable uncontrolled price method refers to the method of pricing according to the price of the same or similar business transactions between unrelated parties;

(2) The resale price method refers to the pricing method of deducting the sales gross profit of the same or similar business from the price of goods purchased by related parties and resold to non-related parties;

(3) Cost additive process refers to the method of pricing according to cost plus reasonable expenses and profits;

(4) The transaction net profit method refers to the method of determining profits according to the net profit level obtained by the uninvolved parties in the same or similar business dealings;

(5) Profit distribution method refers to the method of distributing the consolidated profits and losses of an enterprise and its related parties among all parties by adopting reasonable standards;

(six) other ways in line with the principle of independent trading.

According to the above provisions, domestic factories and overseas parent companies are related parties, and their payment of trademark use fees to overseas parent companies conforms to the principle of independent transactions and has reasonable business purpose arrangements. Reasonable expenses related to the income obtained by domestic factories can be deducted before domestic factory income tax. Otherwise, the tax authorities have the right to make adjustments in a reasonable way.