What tax should individual industrial and commercial households pay when they are acquired by other companies?

Article 3 of the Notice of State Taxation Administration of The People's Republic of China on Printing and Distributing the Measures for Individual Income Tax of Individual Industrial and Commercial Households (for Trial Implementation) stipulates that the balance of the total personal income after deducting costs, expenses and losses in each tax year is taxable income, and the personal income tax payable is calculated accordingly. Its calculation formula is:

Taxable income = total income-costs, expenses and losses

Personal income tax payable = taxable income x applicable tax rate

Article 4 stipulates that the total income of self-employed individuals refers to all kinds of income obtained by self-employed individuals in production and operation and activities related to production and operation, including commodity (product) sales income, operating income, labor service income, project price income, property rental or transfer income, interest income, other business income and non-operating income.

Therefore, the income obtained by individual industrial and commercial households from transferring their main assets belongs to the income obtained by self-employed individuals engaged in production and operation, and personal income tax should be paid according to the above provisions.