1. What does the equity transfer include?
Concept of equity: Equity refers to the equity or shares invested by individuals in enterprises or organizations established in China (hereinafter referred to as invested enterprises, excluding sole proprietorships and partnerships).
The following acts belong to equity transfer: selling equity, repurchasing equity by the company, initial public offering of new shares by the issuer, public offering and sale of shares held by shareholders of the invested enterprise to the investing enterprise, compulsory transfer of equity by judicial or administrative organs, foreign investment or other non-monetary transactions with equity, repayment of debts with equity, and other equity transfer acts.
2. What are the benefits of equity transfer?
1, income from equity transfer
Refers to the cash, objects, securities and other forms of economic benefits obtained by the transferor due to the equity transfer.
2. Various funds related to equity.
Including liquidated damages, compensation and other funds, assets, rights and interests and other income. And the taxpayer's subsequent income after meeting the agreed conditions in accordance with the contract.
3. Special circumstances.
When the income from equity transfer is obviously low and the transferor cannot provide relevant information, the competent tax authorities may verify the income from equity transfer.
Three. Personal income tax is required for equity transfer.
Individual income tax is levied on tax items and tax rates according to "income from property transfer", and the tax rate is 20%.
Calculation formula: tax payable = (confirmed equity transfer income-original equity value-reasonable expenses) *20%.
Taxpayer and withholding agent: the transferor of equity is the taxpayer and the transferee is the withholding agent.
Tax payment place: declare to the competent tax authorities where the invested enterprise is located.