Core Viewpoint - The article discusses the obligations of domestic companies in China regarding withholding corporate income tax when making payments to foreign entities for services rendered, emphasizing the conditions under which such tax must be withheld [1][2]. Group 1: Tax Withholding Obligations - Non-resident enterprises in China must self-declare and pay corporate income tax on income sourced from within China if they have established a presence in the country [1]. - If a non-resident enterprise does not have a presence in China, the domestic payer is responsible for withholding tax on income sourced from China [1][2]. Group 2: Determining Tax Liability - The determination of whether a non-resident enterprise has a taxable presence in China includes assessing if it has established any institutions or places of business within the country [2][3]. - Income sourced from China is categorized based on the nature of the income, such as sales of goods or provision of services, and is determined by the location of the transaction or service [3][4]. Group 3: Common Scenarios - Payments made to foreign companies for services may fall into two categories: 1. If the foreign entity sends personnel to provide services in China, withholding tax is required; if services are provided outside China, no withholding tax is necessary [5]. 2. If the payment is for the use of intellectual property rights, such as patents or trademarks, it constitutes "royalty income," which also requires withholding tax [6]. Group 4: Payment Reporting Requirements - Domestic entities making payments to foreign entities exceeding the equivalent of $50,000 must report these payments to the local tax authority [7].

Core Viewpoint - The article discusses the tax-related provisions in the "Civil Code of the People's Republic of China," particularly focusing on technology contracts and their implications for taxation [3]. Group 1: Technology Contracts - Article 862 defines technology transfer contracts as agreements where the legal owner of technology transfers specific rights related to patents or trade secrets to another party [6]. - Technology licensing contracts allow the legal owner to permit others to implement or use specific patents or trade secrets [6]. Group 2: Personal Income Tax Law - The "Personal Income Tax Law" and its implementation regulations outline that income from royalties is calculated after deducting 20% of expenses from the total income [7]. - Royalties are defined as income obtained from providing rights to use patents, trademarks, copyrights, and other proprietary rights, excluding manuscript fees [8]. Group 3: Tax Policies for Technology Achievements - The article mentions that cash rewards for technology personnel from the conversion of job-related scientific achievements can be reduced by 50% when calculating their monthly income [8]. - Non-profit research institutions and universities must sign technology contracts and register them according to the "Technology Contract Recognition and Registration Management Measures" [9]. Group 4: Tax Incentives for Equity Incentives and Technology Investment - Individuals or enterprises investing in domestic resident enterprises with technology achievements can choose to defer tax payments until the transfer of equity, allowing for tax deferral policies [10]. - The value of technology achievements can be recorded as an asset for tax deduction purposes when invested in equity [10].

Group 1 - The core viewpoint of the article is that personal income tax is no longer collected during the invoice issuance process for labor remuneration, manuscript remuneration, and royalties, as the tax is now withheld by the payer according to regulations [1][4]. - The policy is based on the announcement from the State Administration of Taxation regarding the management of individual income tax withholding and declaration [1][4]. - The withholding agent is responsible for calculating and withholding the personal income tax based on the net income after deducting expenses, with specific rules for manuscript income [1][3]. Group 2 - For labor remuneration, manuscript remuneration, and royalties, if the income per instance does not exceed 4,000 yuan, a deduction of 800 yuan is applied; if it exceeds 4,000 yuan, a deduction of 20% of the income is applied [3][4]. - The taxable income for withholding is calculated based on the income amount after deductions, with different withholding rates applied for different income brackets [4][5]. - The withholding rates for labor remuneration are structured in tiers, with a 20% rate for income up to 20,000 yuan, 30% for income between 20,000 and 50,000 yuan, and 40% for income exceeding 50,000 yuan [5].