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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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Rental income from properties owned by non-resident foreign investors are subject to the following taxes: -

Type of tax Rate

Income tax 20% on rental income
Business tax 5% on rental income
City property tax 18% on rental income

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Legal authority
The PRC Stamp Tax Tentative Regulation, promulgated by the State Council on 6th August 1988 and effective from 1st October 1988.

Scope of Stamp Tax
Stamp tax or stamp duty is payable on instruments created in the course of economic activities or on the licensee and certificates granted by the administrative authority.

Stamp tax are payable on the following types of contracts or licenses:-
Contracts or agreements;
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