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Posts Tagged ‘patent’

SSPECIAL TAX TREATMENTS AND APPLICATION( TAXATION ON LICENSING AND ASSIGNMENT OF IP RIGHTS LICENSING IP RIGHTS )

January 18th, 2009 No comments

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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China revises patent law to encourage innovation

December 28th, 2008 No comments

BEIJING, Dec. 27 (Xinhua) — China’s top legislature on Saturday approved the revision of the Patent Law to allow inventors to apply for foreign patents before domestic ones for their inventions.

The revised law, which takes effect on Oct. 1, 2009, was adopted with 154 votes and four abstentions at the closing meeting of the sixth session of the 11th National People’s Congress (NPC) Standing Committee.

The change is aimed at encouraging innovation and improving China’s “international competitiveness”, Chen Guangjun, a senior official with the NPC’s Education, Science, Culture and Health Committee, said at a press conference after the legislative session.

Previously, the Patent Law stipulated that people, whose inventions were completed in China, must apply for domestic patents first before applying for a foreign one.

The new amendment also says Chinese inventors must first go through government scrutiny before applying for foreign patents to find out if such innovations should be made national secrets.

Inventions which have not undergone security checks will not begranted Chinese patents, according to the law.

The amendment applies to all inventions completed in China.

The Patent Law, which was enacted 1985, has had two major revisions in the past.

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