What are the types of taxes and fees for equity transfer and how to pay them?

I. Stamp Duty According to Article 2 of the Provisional Regulations on Stamp Duty in People's Republic of China (PRC) promulgated by the State Council 1988, the transfer of property rights is regarded as a taxable certificate. The instrument of property right transfer refers to the instrument of property right sale, inheritance, gift, exchange and division of units and individuals, including the transfer of property ownership and copyright, trademark exclusive right, patent right and proprietary technology use right. The equity transfer contract belongs to the "Property Right Transfer Document" referred to in this article, and stamp duty shall be paid according to the law according to the decal of five ten thousandths of the amount contained. Two. Income tax 1. Individual Income Tax According to the Individual Income Tax Law of People's Republic of China (PRC) and its implementing regulations, individual income tax is levied on the income from equity transfer obtained by natural person shareholders. The taxable income is the income obtained by individuals from each property transfer, and the balance after deducting the original value of the property and reasonable expenses is subject to the proportional tax rate of 20%. 2. Enterprise Income Tax According to the Notice on Some Income Tax Issues Concerning Enterprise Equity Investment issued by State Taxation Administration of The People's Republic of China in 2000, the income or loss from the transfer of enterprise equity investment refers to the balance after deducting the cost of equity investment from the income from the recovery, transfer or liquidation of equity investment. The income from the transfer of enterprise equity investment shall be incorporated into the taxable income of the enterprise, and enterprise income tax shall be paid according to law. All taxable income obtained by resident enterprises and all income obtained by non-resident enterprises except the following income shall be subject to enterprise income tax at a reduced rate of 25%. The specific calculation formula is: taxable amount = taxable income? 25%; For non-resident enterprises, if there are no institutions or places in China, or if there are institutions or places, but their income is not actually related to their institutions or places, the enterprise income tax shall be paid at a reduced rate of 20%. The specific calculation formula is: taxable amount = taxable income? 20%。 In addition, according to "Guo (2004) No.390" and "Supplementary Notice of State Taxation Administration of The People's Republic of China on Income Tax Related to Enterprise Equity Transfer" issued by State Taxation Administration of The People's Republic of China in 2004, (1) in general equity transactions, enterprises should follow the aforementioned "Guo Shui Fa (2000)18". (II) When an enterprise liquidates or transfers a wholly-owned subsidiary or an enterprise holding more than 95% of the shares, it shall be executed in accordance with the relevant provisions of the Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Printing and Distributing the Interim Provisions on Some Income Tax Issues in Enterprise Restructuring (Guo Shui Fa [1998] No.97). The investor's share in the accumulated undistributed profits and accumulated surplus reserves of the invested entity shall be recognized as the investor's dividend. In order to avoid repeated taxation of after-tax profits and affect enterprise restructuring activities, the above dividend income is allowed to be deducted from the transfer income when calculating the investor's equity transfer income; (3) According to Article 3 of the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Implementing the Accounting System for Enterprises on Income Tax (Guo Shui Fa [2003] No.45), if the taxable income of the assets for which an enterprise has made provision for impairment, impairment or bad debts has increased when the related reserves are declared for tax payment, the transferred and disposed related reserves should be allowed to make the opposite tax adjustment. Therefore, when an enterprise liquidates or transfers all the shares of its subsidiaries (or branches with independent accounting), the liquidated or transferred enterprise should reduce the taxable income and increase the undistributed profits according to the amount of assets impairment reserves such as bad debt reserves of taxable income in the past, and the transferor (or investor) should recognize it as dividend income according to the share of rights and interests enjoyed. Third, deed tax According to the regulations, in the equity transfer, units and individuals bear the equity of the enterprise, and the ownership of the land and houses of the enterprise is not transferred, and deed tax is not levied; In the process of capital increase and share expansion, the deed tax is levied on the ownership of land and houses as shares or as a contribution to the enterprise. Four. Business tax According to the Document Caishui (2002) 19 1 issued by the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China on June 65438+1October 0, 2003 and the Notice of the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China on Business Tax on Equity Transfer, no business tax is levied on equity transfer. Through the above introduction, I believe everyone has a certain understanding of the types of taxes and fees for equity transfer and how to pay them. Both parties to the equity transfer have to pay stamp duty, and the tax rate is five ten thousandths. The personal income tax rate is 20%, and the corporate income tax rate is divided into 20% and 25% according to different situations. In the capital increase and share expansion, deed tax may be required. The business tax on equity transfer was cancelled as early as 2003.