When an enterprise is liquidated, the investor shall settle the relevant tax matters with the competent tax authorities before canceling the industrial and commercial registration. 1. The liquidation income of the enterprise shall be regarded as the annual production and operation income, and the individual income tax shall be paid by the investors according to law. 2. The liquidation income mentioned in the preceding paragraph refers to the part of the fair value of all assets or property that exceeds the paid-in capital after deducting all liquidation expenses, losses, liabilities and profits retained in previous years. Determine the taxable income according to the total liquidation income of the partnership enterprise and the distribution ratio agreed in the partnership agreement. If the partnership agreement does not stipulate the distribution ratio, the taxable income of each investor shall be calculated according to the total liquidation income and the number of partners, and the tax item shall still be "income from production and operation of individual industrial and commercial households". 3. It needs special attention here that the profits retained in previous years should be deducted from the liquidation income of the partnership. This is because when calculating the "income from the production and operation of individual industrial and commercial households" during normal production and operation, regardless of whether the profits realized in the current period are distributed or not, it includes the income that the enterprise has allocated to individual investors and the income (profit) retained by the enterprise in that year. Therefore, when calculating the personal income tax from liquidation, the undistributed retained earnings in previous years should be excluded.
Legal objectivity:
Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on the Income Tax of Partners in Partnership Enterprises
The partners of a partnership enterprise shall determine the taxable income according to the following principles:
(1) The partners of a partnership enterprise shall determine the taxable income from the production, operation and other income of the partnership enterprise according to the distribution ratio agreed in the partnership agreement.
(2) If the partnership agreement is not stipulated or clearly stipulated, the taxable income shall be determined according to the distribution ratio decided by the partners through consultation with all the income from production and operation and other income.
(3) If negotiation fails, the taxable income shall be determined according to the total production and operation income and other income and the proportion of the paid-in capital contribution of the partners.
(4) If the proportion of capital contribution cannot be determined, the taxable income of each partner shall be calculated on the basis of the total production and operation income and other income according to the number of partners.
The partnership agreement shall not stipulate that all profits shall be distributed to some partners.