What tax should I pay for company mergers and acquisitions?

Enterprise income tax shall be paid by both parties who acquire assets. The tax rate of enterprise income tax is 25%, and the taxable income is the balance of the purchase price MINUS the reasonable expenses related to income, including costs, expenses, taxes, losses and other expenses.

legal ground

Article 6 of the Enterprise Income Tax Law of People's Republic of China (PRC)

The income obtained by enterprises from various channels in monetary and non-monetary forms is the total income. Including:

(1) Revenue from the sale of commodities;

(2) Income from providing labor services;

(3) Income from property transfer;

(four) dividends, bonuses and other equity investment income;

(5) Interest income;

(6) Rental income;

(7) Royalty income;

(8) Receiving donation income;

(9) Other income.