When an enterprise transfers its equity income, it shall confirm the realization of the income when the transfer agreement comes into effect and the formalities for equity change are completed. Income from equity transfer refers to the income from equity transfer after deducting the cost of acquiring equity.
2. Tax rate:
If a non-resident enterprise has not established an institution or place in China, or if it has established an institution or place, but its income has no actual connection with the established institution or place, its income from equity transfer in China shall be subject to enterprise income tax at the rate of 20%, and at the same time, according to Article 91 of the Regulations for the Implementation of the Enterprise Income Tax Law, the enterprise income tax shall be levied at the reduced rate of 10%.