Q:
|
What obligations should the two parties fulfill respectively in the transfer of the company's equity?
|
A:
|
In the equity transfer transaction, the transferor is the taxpayer. The transferee is a withholding agent who performs the obligation of withholding and remitting taxes.
|
Q:
|
What material does company equity transfer need?
|
A:
|
-
Application Form for Company Change Registration
-
Amendments to the Articles of Association signed and sealed by all shareholders
-
Shareholders' meeting resolution signed by all the shareholders and sealed by the official seal
-
Original and copy of the company's license
-
Copy of ID card of all shareholders (check the original)
-
Original equity Transfer Agreement (indicating the transferor and transferee of the equity, signed by both parties)
|
Q:
|
What is the specific standard of company equity transfer tax?
|
A:
|
Individual income tax: individual income tax shall be levied according to the item of "income from property transfer". The balance after deducting the original value of the property and reasonable expenses from the income amount of equity transfer shall be the taxable income amount. A 20 per cent tax rate applies.
Stamp duty: both parties shall pay stamp duty according to the book made by the equity transfer. The applicable tax rate shall be 0.5% of the amount specified in the statement.
Enterprise income tax: the income from equity investment transfer shall be incorporated into the enterprise's taxable income. The taxable income amount is equal to the balance of equity transfer income minus equity tax cost. A 25 per cent tax rate applies.
|
Q:
|
The parties in equity trade have signed equity transfer agreement, but how to do if we do not complete transfer transaction?
|
A:
|
An enterprise shall fill in the Report Form on Changes of Individual Shareholders and report to the competent tax authorities when it applies to the administrative department for industry and commerce for registration of change of shares.
|
Q:
|
Whether does company equity transfer have limitation condition?
|
|
A:
|
The shares held by the promoters of a joint stock company shall not be transferred within one year from the date of establishment of the company. The shares of the company held by directors, supervisors, managers and other senior management personnel shall not transfer more than 25% of the total shares of the company held by them each year during their tenure of office.
|
FAQ
