Income from share transfer needs to be taxed, mainly including personal income tax, stamp duty and other taxes. Shareholders' shares can be transferred and realized to obtain short-term benefits. For the transfer of shareholders, it involves some legal knowledge, and some investors and shareholders have weak legal awareness, which will involve some legal blind spots, leading to the illegal transfer and realization of shares and some shareholder transfer disputes.
The following acts are acts of share transfer:
1. Sell the shares held by shareholders. In other words, the shareholders of a company sell their shares and let others buy them, which is equivalent to trading to get money. In this case, it is necessary to pay certain taxes;
2. The company repurchases shares. The repurchase of shares by a company is an act of buying shares held by others, and it is also subject to tax;
3. The company has initiated the issuance of new shares, and shareholders of investment enterprises will sell shares to investors through public offering;
4. The shares held by shareholders are forcibly transferred by judicial or administrative organs;
5. Shareholders use their shares for foreign investment or other non-monetary transactions;
6. It is also an act of share transfer for shareholders to pay off debts owed by shareholders with shares.
To sum up, as long as there is a substantial share transfer, it is already a share transfer, and personal income should be subject to personal income tax.
Legal basis:
Article 71 of the Company Law
The first paragraph stipulates that shareholders of a limited liability company may transfer all or part of their shares to each other.
Paragraph 1 of Article 2 of the Individual Income Tax Law stipulates that 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.
Paragraph 1 of Article 71 of the Company Law
Shareholders of a limited liability company may transfer all or part of their shares to each other.
Paragraph 1 of Article 2 of the Individual Income Tax Law
The following personal income shall be subject to personal income tax:
(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.