Item 9 of Article 2 of the Individual Income Tax Law of People's Republic of China (PRC) stipulates that individual income tax shall be paid on the income from property transfer; Paragraph 5 of Article 3 stipulates that the income from property transfer shall be subject to the proportional tax rate of 20%; Article 6, paragraph 1, item 5, stipulates that the balance of the income from property transfer after deducting the original value of the property and reasonable expenses shall be taxable income.