[WSBAPT] IP Royalties from China

[David Faber]

Looking to chat with someone who has a bit of experience dealing with the
tax treatment of IP royalties from China.

A client of mine had a sudden change in fortune with the success of a book
in China. His publisher in China is telling him that he should only take
$10,000 a month in royalties or the Chinese government will increase the
rate of taxes that he pays on those royalties in China, but the publisher
also stated that if the copyright were owned by an LLC instead of by my
client as an individual, the tax treatment issue would somehow go away.
That makes no sense to me given that both a copyright or an ownership
interest in an LLC would be classified as intangible personal property,
plus it doesn't make any sense that China would care about the type of
entity that is receiving the payments, but I admit my knowledge of Chinese
tax law is nonexistent.

Has anyone on here dealt with anything similar or have advice on who I
could reach out to?

Best,
David J. Faber
Faber Feinson PLLC
210 Polk Street, Suite 1
Port Townsend, WA 98368
(360) 379-4110

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