Changing The Way In Which Patents Are Used Can Save Taxes.

The patent right is a valuable intangible asset. Whether the owner pfers the assets directly to obtain cash or whether it is more cost-effective as an investment, there is a problem of tax planning.

Generally speaking, the treatment of patent rights can be chosen as follows: 1., selling directly the patent right to earn income; 2. people using the intangible assets to set up the enterprise solely; and 3. on the basis of patent.

The effect of the above three methods on taxation is different.

For example, an expert has made an invention. After the publication of the patent, several enterprises are willing to buy this patent at a price not less than 10 million yuan, and some other enterprises hope to cooperate with him in doing business.

As the owner of the patent right, how should we make decisions at this time?

Here we might as well make a financial analysis from the perspective of taxation.

Plan 1: direct liquidation.

If the direct pfer of the patent to obtain cash, you can earn 10 million yuan, but at the same time, you should pay the relevant taxes.

According to the relevant regulations of business tax, the pfer of the patent right belongs to the pfer of intangible assets, and the business tax shall be paid, with a tax rate of 5%.

However, according to the provisions of article [1999]273, if taxpayers fulfill the relevant formalities, they can be duty-free, but the procedures are more complex and time-consuming.

According to the relevant provisions of the personal income tax law, the pfer of the patent right belongs to the royalty income and should be paid personal income tax.

The royalty income is the amount of taxable income after deducting the prescribed fee from the income, norm or fixed rate earned by each individual.

Since all income has exceeded 4000 yuan, 20% of the cost should be deducted.

Therefore, the amount of tax payable to the patented owner shall be: [1000, 1000 x 20%] x 20% = 160 (10000 yuan).

After he paid his personal income tax, his actual income was 8 million 400 thousand yuan.

This is what he really owns in the pfer of patents.

Plan two: investment in sole proprietorship.

If the expert turns capital into a capital by investing in a factory, and then proceeds from selling products, the situation will change.

Most of the newly established enterprises can enjoy preferential tax relief.

In terms of Taxation, the personal income tax he has to pay will be greatly reduced compared with the plan.

The advantage of this scheme is that its assets have been preserved and added value through the business process, resulting in long-term economic benefits.

Of course, this is conditional: first, there are other funds to support; the two is to have its own ability to operate; the three is to have other necessary conditions.

Plan three: invest in joint ventures.

If it is unable to operate independently and choose to cooperate with others in operation, the inventor will invest in technology (patent), and others will contribute to the establishment of a limited liability company. As long as the patent right proportion of the enterprise capital is agreed in advance, then profits can be allocated according to the proportion of each enterprise in the normal production and operation.

The cost of his patent is 10 million yuan, which will be allocated to the cost of the product during the operation period and recovered through product sales revenue.

In addition to the taxes that enterprises should bear, he only needs to bear the personal income tax payable when dividends are invested, and his capital share is not subject to other taxes before pfer.

If he chooses to own a stake in Limited by Share Ltd, how much will he bear?

How much is the expected revenue? In accordance with the relevant provisions of the business tax regulations, the company will invest in the intangible assets and participate in the profit sharing of the investors so as to jointly assume the risk of investment and do not bear the business tax.

At the same time, he can get 10 million yuan profit from the company's after tax profits every year. As to how much money it is, it depends on how much the company's after tax profits are.

But as long as the company exists, if he does not pfer shares, the income is long-term.

Of course, this part of the proceeds, as dividends and dividends gained through ownership, should be paid at a rate of 20%.

As a joint stock company, the ownership of all shares is represented by shares and shares are usually represented as stocks.

Once listed, he can have two advantages: first, the stock may appreciate, that is not only 10 million yuan; two, after the listing, the shares are easier to cash in.

According to the relevant regulations of personal income tax, the pfer of shares is temporarily exempt from personal income tax.

Therefore, under such circumstances, he holds 10 million yuan shares not only to maintain value added, and do not have to bear the tax burden of the scheme.

In this way, both the patented income and the operating income can be obtained, and the tax burden may be the lightest compared with the separate patent pfer.

The pros and cons of the three schemes are obvious.

In fact, the plan is relatively simple. There is no risk. After paying taxes, we can really hold large sums of money and do what we want to do with this money.

However, the tax burden is too heavy, and income is fixed, there is no hope of appreciation; program two and program three from the tax point of view, the tax burden is relatively light, and there is the possibility of appreciation, but the risk is also large, uncertain factors are more.

If the inventor wishes to pursue greater interests and has his own conditions, he can make a choice between the latter two.