How to pay taxes on the premium part of equity transfer?

Legal analysis: the premium part of equity transfer is taxed according to the transfer price MINUS the original value of stock purchase MINUS the reasonable expenses incurred at the time of purchase and then multiplied by 20%. If the transferor is a legal person, the investment income shall be confirmed according to the accounting standards for business enterprises, and the equity premium shall be taxed according to the applicable income tax rate of the enterprise. Taxpayers or withholding agents shall go through the formalities of tax declaration and tax storage with the competent tax authorities.

Legal basis: Article 2 of the Individual Income Tax Law of People's Republic of China (PRC), individual income tax shall be paid for the following personal income: (1) income from wages and salaries; (2) Income from remuneration for labor services; (3) Income from remuneration; (4) Income from royalties; (5) Operating income; (6) Income from interest, dividends and bonuses; (7) Income from property lease; (8) Income from property transfer; (9) Accidental income. Individual residents who obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax according to the tax year; Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly or itemized basis. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.