There is a charge. The tax on equity transfer is related to the transfer price, and has nothing to do with the transferor's profit or loss. Equity transfer mainly involves corporate income tax, personal income tax, stamp duty and other taxes. When the transferor is an individual, personal income tax is only paid at the rate of 20%. When the transferor is a company, there are many taxes involved, such as enterprise income tax and stamp duty. According to the Individual Income Tax Law of People's Republic of China (PRC) and its implementing regulations, the income from individual equity transfer shall be taxed according to the items obtained from property transfer, and the balance of the income from equity transfer after deducting the original value of the property and reasonable expenses shall be calculated and paid at the tax rate of 20%. The income from property transfer mentioned in Item (3) of Article 6 of the Enterprise Income Tax Law refers to the income obtained by an enterprise from the transfer of fixed assets, biological assets, intangible assets, equity, creditor's rights and other property. Regulations for the Implementation of Enterprise Income Tax Law of People's Republic of China (PRC) Article 16 Regulations for the Implementation of Individual Income Tax Law of the People's Republic of China Article 6 Individual Income Tax Law of People's Republic of China (PRC) Article 2 Individual Income Tax Law of People's Republic of China (PRC) Article 3 Individual Income Tax Law of People's Republic of China (PRC) Article 6.
Legal objectivity:
Provisions of the Supreme People's Court on Several Issues Concerning the Application of the Company Law of People's Republic of China (PRC) (III) Article 11 If an investor contributes capital with the equity of another company and meets the following conditions, the people's court shall consider that the investor has fulfilled the obligation to contribute capital: (1) The equity contributed is legally held by the investor and can be transferred according to law; (2) There is no right defect or burden in the contributed equity; (3) The investor has fulfilled the legal procedures for equity transfer; (4) The equity contribution has been appraised according to law.