According to Article 1 of the Notice of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China of the Ministry of Finance on Personal Income Tax Policies for Personal Non-monetary Assets Investment (Caishui [2015] No.41), "Personal investment in non-monetary assets means that individuals transfer non-monetary assets and invest at the same time. Income from the transfer of non-monetary assets by individuals shall be accounted for and paid according to the item of "income from property transfer". According to Article 3 of the Notice on Improving the Income Tax Policy for Equity Incentives and Technology Shares (Caishui [2016]10/No.): "If an individual invests in a domestic resident enterprise with technological achievements and all the consideration paid by the invested enterprise is shares (rights), the individual may choose to continue to implement the current relevant tax policies or apply the deferred tax preferential policies. If the deferred tax policy is chosen for the investment in technological achievements, the tax may not be paid in the current period of investment and shareholding after filing with the competent tax authorities. When deferred to share transfer is allowed, the income tax shall be calculated and paid according to the difference between the original value of technological achievements and reasonable taxes and fees. Technological achievements refer to patented technology (including national defense patents), computer software copyright, exclusive right of integrated circuit layout design, new plant variety right, new biomedical varieties, and other technological achievements recognized by Ministry of Science and Technology, Ministry of Finance and State Taxation Administration of The People's Republic of China of the People's Republic of China. Shares in technological achievements refer to the behavior that taxpayers transfer the ownership of technological achievements to the invested enterprise and obtain the shares (rights) of the enterprise. "
Therefore, taxpayers should pay a tax on the "income from property transfer".