At the same time, enterprises that have obtained franchise fee income should also pay enterprise income tax. According to the Enterprise Income Tax Law and its implementing regulations, enterprises in People's Republic of China (PRC) shall pay enterprise income tax on their production and operation income and other income. Taxpayers' total income includes income from selling goods, providing labor services, transferring property, dividends, bonuses and other equity investments, interest income, rental income, royalties income, accepting donations and other income. Royalty belongs to royalty income and should be included in the taxable income of enterprises. The recognition time of royalty income shall be based on the date when the concessionaire pays the royalties as agreed in the contract.