What Is The Method Of Payment Of Technology Transfer Contract

Contracting parties may agree on payment by any of the following methods:

• Payment in lump sum or installments in cash or in kind;
• Conversion of the technology value into contributions as capital to an investment project or to an enterprise;
• In case the contracting parties agree on contribution of technologies as capital, only after the technology transfer is completed with these parties' certification can the technology value be accounted by contribution of the technology transferor to the investment project or enterprise;
• Payment on a seasonal basis at a percentage (%) of the net selling price.
• The net selling price is determined to equal the selling price of products or services turned out by the transferred technology (according to sale invoices) minus value-added tax, excise tax, export duty (if any); costs of semi-finished products, parts, details and components imported or purchased at home; package material and packaging costs, freight for transportation of products to outlets, and advertisement expenses;
• Payment at a percentage (%) of the net turnover.
• The net turnover is determined to equal the turnover from sale of goods or provision of services turned out by the transferred technology minus turnover reductions including commercial discounts, price reductions of goods sold, returned goods;
• Payment at a percentage (%) of the pre-tax profit of the transferee.
• The pre-tax profit is determined to equal the net turnover minus total reasonable expenses for the production of marketed products with the transferred technology;
• Combination of payment methods specified in Clauses 1, 2, 3, 4 and 5 of this Article.

03 Jul 2016

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