Q：
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How to confirm the tax payment date for equity transfer?
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A：
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The tax payment period for equity transfer is within the 15 days of the following month after the equity transfer occurs. The definition of the time when equity transfer occurs mainly includes six situations:
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If the transferee has already paid or partially paid the equity transfer price;
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The equity transfer agreement has been signed and takes effect;
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The transferee has actually fulfilled its shareholder responsibilities or enjoyed shareholder rights and interests;
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Judgments, registrations, or announcements made by relevant national departments that come into effect;
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The fourth to seventh acts of Article 3 of the State Administration of Taxation on the Administration of Individual Income Tax on Equity Transfer Income (Trial) (Announcement No. 67 of the State Administration of Taxation in 2014) have been completed;
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Other situations recognized by the tax authorities that have evidence indicating that equity has been transferred.
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Q：
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How is the personal income tax calculated for individuals transferring equity?
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A：
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When an individual transfers equity, the taxable income shall be the balance of the equity transfer income minus the original value of the equity and reasonable expenses, and personal income tax shall be paid as "property transfer income".
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Q：
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What are the reasonable expenses for individual equity transfer?
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A：
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Reasonable expenses refer to the relevant taxes and fees paid in accordance with regulations when transferring equity. Confirm the relevant taxes and fees paid in accordance with regulations during this equity transfer based on tax payment vouchers, relevant invoices, etc. Among them, the tax payment voucher is the stamp tax payment voucher related to this equity transfer; The relevant invoices are reasonable expenses related to the equity transfer, such as authentication fees, intermediary fees, lawyer agency fees, etc.
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Q：
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How to grasp the principles and methods for determining personal equity transfer income?
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A：
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The income from equity transfer should be determined in accordance with the principle of fair dealing. Equity transfer income refers to the cash, physical assets, securities, and other forms of economic benefits obtained by the transferor due to equity transfer. All payments related to equity transfer obtained by the transferor, including liquidated damages, compensation, and other nominal amounts, assets, rights, etc., shall be included in the income from equity transfer. According to the contract, the subsequent income obtained by taxpayers after meeting the agreed conditions shall be recognized as equity transfer income.
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Q：
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Is personal income tax levied on the liquidated damages obtained during the transfer of personal equity?
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A：
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According to the "Reply of the State Administration of Taxation on the Issue of Levying Individual Income Tax on Income from Breach of Contract in the Process of Personal Equity Transfer" (Guo Shui Han [2006] No. 866), "according to the" Individual Income Tax Law of the People's Republic of China According to relevant regulations, after the successful transfer of equity, the personal penalty income obtained by the transferor due to the transferee's failure to pay the price within the prescribed time limit belongs to the income generated from property transfer. The liquidated damages obtained by the transferor personally shall be incorporated into the income from property transfer, and personal income tax shall be calculated and paid according to the 'income from property transfer' item. The tax shall be declared and paid by the transferor personally to the competent tax authority According to the "Management Measures for Individual Income Tax on Equity Transfer Income (Trial)"
Article 8 of the Announcement No. 67 of the State Administration of Taxation in 2014 stipulates that the transferor shall include various payments related to equity transfer, including liquidated damages, compensation, and other items of funds, assets, and rights, etc., in the income from equity transfer.
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