The Study On Income Tax Problem For Patent Right Investment In China

In the intellectual property capitalization process, Patents cannotproduce cash flow due to the particularity of the consideration obtained,which makes the legislature as well as the tax authorities facing a dilemma ontaxation. On the one hand, the principle of measuring capability levy dutyand the principle of tax fairness require the patentee pays income tax whenwho just received shares like the other non-monetary assets contributed ascapital contribution, and the tax incentives cannot be unlimited given topatentee. On the other hand, contributors get the consideration for the shareswhich cannot produce cash flow, and that makes them unable to pay hugecash taxes. Coupled with patent-funded tax policies will affect thedevelopment of high-tech industries, the legislator need had in the amount ofenergy taxation principles and tax efficiency principles conflict to find a balance, and has to the establishment of a limited preferential system ofdeferred taxes.In order to reduce the impact of the tax preference, limited deferredincentives system should be moderate, reasonable, And in accordance withthe public interest, the principle of proportionality and the principle ofequality. In order to prevent tax deferred limited preferential system erroroccurs during execution, and contrary to the tax concessions against theprinciple of measuring capability levy duty, legislators should considerdividends income withholding funding system and patent informationmanagement and sharing mechanism, deferred tax is limited preferentialsystem of rational and effective implementation and to provide aninstitutional guarantee reach the intended target.