The transfer of financial commodities refers to the business activities of transferring the ownership of financial commodities such as foreign exchange, securities and non-commodity futures. The transfer of other financial commodities includes the transfer of various asset management products such as funds, trusts and wealth management products and various financial derivatives.

The VAT rate for the transfer of financial commodities is 6%, and the levy rate applicable to small-scale taxpayers is 3%. The time when the obligation to pay value-added tax on the transfer of financial goods occurs is the day when the ownership of financial goods is transferred.

The balance of financial commodity transfer after deducting the purchase price from the selling price is the sales amount. The positive and negative difference of the transferred financial goods is the sales amount after breakeven. If there is a negative difference after the offset, it can be carried forward to the next tax period to offset the sales amount of the transferred financial goods in the next period. However, if there is still a negative difference at the end of the year, it cannot be carried forward to the next fiscal year. (VAT payable = (selling price-purchasing price)/1.06 * 0.

Income from financial commodity transfer under the following eight circumstances shall be exempted from VAT.

1. Qualified Foreign Investors (QFII) entrust domestic companies to engage in securities trading in China.

2. Hong Kong market investors (including units and individuals) buy and sell A shares listed on the Shanghai Stock Exchange through Shanghai-Hong Kong Stock Connect.

3. Mutual recognition of Hong Kong market investors (including units and individuals) buying and selling mainland fund shares through funds.

4. Managers of securities investment funds (closed-end securities investment funds and open-end securities investment funds) use the funds to buy and sell stocks and bonds.

5 individuals engaged in financial commodity transfer business.

6. Income from the transfer of financial commodities obtained by the National Social Security Fund Council and the investment managers of the National Social Security Fund from buying and selling securities investment funds, stocks and bonds to the National Social Security Fund.

7. Renminbi Qualified Foreign Investors (RQFII) entrust domestic companies to engage in securities trading in China.

8. Income from overseas institutions' investment in the interbank local currency market approved by the People's Bank of China.

What taxes need to be paid for equity transfer between enterprises?

Generally, enterprise equity transfer needs to pay value-added tax, enterprise income tax and stamp duty. The income from equity transfer is the income from the transfer of property, and the enterprise income tax rate is 25%. The equity transfer contract is a taxable document, and stamp duty should be paid according to law. Generally speaking, the total income of an enterprise in each tax year, after deducting non-taxable income, tax-free income, various deductions and allowed losses in previous years, is taxable income.

People's Republic of China (PRC) enterprise income tax law

Article 5 The taxable income is the balance of the total income of an enterprise in each tax year after deducting non-taxable income, tax-free income, various deductions and losses allowed to be made up in previous years.

Article 6 The income in monetary form and non-monetary form obtained by an enterprise from various channels is the total income, including:

(1) Revenue from the sale of commodities;

(2) Income from providing labor services;

(3) Income from property transfer;

(four) dividends, bonuses and other equity investment income;

(5) Interest income;

(6) Rental income;

(7) Royalty income;

(8) Receiving donation income;

(9) Other income.