Do listed companies have to pay taxes when transferring shares?

Equity transfer of listed companies needs to be taxed. Listed companies should pay taxes according to different situations. In addition to the business tax, the shareholders of an enterprise shall also pay enterprise income tax when transferring their shares, and the income from the transfer of equity investment shall be incorporated into the taxable income of the enterprise, and the enterprise income tax shall be paid according to law. Individual shareholders have to pay personal income tax when transferring their shares, and stamp duty when signing a share transfer contract.

legal ground

Paragraph 1 of Article 2 of the Notice of State Taxation Administration of The People's Republic of China on Some Income Tax Issues Concerning Enterprise Equity Investment Business.

The income or loss from the transfer of enterprise equity investment refers to the balance after deducting the cost of equity investment from the income from the recovery, transfer or liquidation of equity investment. The income from the transfer of enterprise equity investment shall be incorporated into the taxable income of the enterprise, and enterprise income tax shall be paid according to law.