Individual income tax shall be paid by the partners in the equity transfer of the partnership.

As of February, 219, the Notice of State Taxation Administration of The People's Republic of China on Effectively Strengthening the Collection and Management of Personal Income Tax for High-income earners stipulates:

The income obtained from the trading of equity (tickets), futures, funds, bonds, foreign exchange, precious metals, resource exploitation rights and other investment products of sole proprietorship enterprises and partnership enterprises shall all be included in the income from production and operation, and personal income tax shall be levied according to law.

The Ministry of Finance, State Taxation Administration of The People's Republic of China, issued the Provisions on Individual Income Tax for Investors > It is stipulated in the Notice:

The balance of the total income of individual proprietorship enterprises and partnership enterprises (hereinafter referred to as enterprises) after deducting costs, expenses and losses in each tax year shall be regarded as the income from the individual production and operation of investors, and personal income tax shall be calculated and levied according to the taxable items of "income from the production and operation of individual industrial and commercial households" in the personal income tax law, with a five-level excess progressive tax rate of 5% ~ 35%. ?

according to the provisions of the above documents, it can be judged that the income from the equity transfer of the partnership belongs to the income from the production and operation of the partnership, and the principle of "dividing the income first and then paying taxes" is adopted according to the income from the production and operation of the partnership.

for individual investors, according to the taxable item of "income from production and operation of individual industrial and commercial households" in the individual income tax law, the five-level excess progressive tax rate of 5% ~ 35% is applied to calculate and collect individual income tax; For investors of corporate enterprises, enterprise income tax shall be paid at the applicable tax rate.

Extended information

How to pay taxes on the dividends of the partnership.

according to the provisions of State Taxation Administration of The People's Republic of China on individual income tax for sole proprietorship enterprises and partnership enterprises >: The notice on the scope of implementation stipulates:

On the taxation of interest, dividends and bonuses from foreign investment of sole proprietorship enterprises and partnership enterprises, the interest or dividends and bonuses from foreign investment of sole proprietorship enterprises and partnership enterprises shall not be incorporated into the income of enterprises, but shall be separately regarded as the income of interest, dividends and bonuses obtained by investors, and personal income tax shall be calculated and paid according to the taxable items of interest, dividends and bonuses. ?

if the foreign investment in the name of a partnership is divided into interest, dividends and bonuses, the income from interest, dividends and bonuses of each investor shall be determined according to the spirit of Article 5 attached to the Notice, and individual income tax shall be calculated and paid according to the taxable items of "income from interest, dividends and bonuses" respectively.

According to the fifth paragraph of Article 3 of the Individual Income Tax Law of the People's Republic of China:

Income from royalties, interest, dividends and bonuses, income from property leasing, income from property transfer, accidental income and other income shall be subject to the proportional tax rate of 2%. Therefore, when a natural person holds shares through a partnership, the personal income tax rate is 2% for dividends obtained from the enterprise invested by the partnership.