SSPECIAL TAX TREATMENTS AND APPLICATION( TAXATION ON LICENSING AND ASSIGNMENT OF IP RIGHTS LICENSING IP RIGHTS )
Fees under technology licensing agreements, intellectual property (IP) right licensing agreement received from a source in the PRC by non-resident foreign corporations or individuals shall be subject to a 10% withholding income tax, a 5% business tax, and a stamp tax of 0.03% on the gross amount. The resident payer has the legal obligation to withhold the tax and pay it over to the tax office. Residents of non-PRC tax treaty countries will be subject to a 20% withholding income tax.
ASSIGMENT OF IP RIGHTS
Non-resident foreign investor receiving income for the Assignment of IP rights in the PRC will be subject to the following type of taxes: -
Type of tax Rate
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