Subjectivity of law:

As to whether the income tax on the transfer of equity by partnership enterprises is levied and how to calculate it, the details are as follows: According to Article 31 of the Regulations of the People's Republic of China on the Administration of Company Registration, "If a company changes its shareholders, it shall apply for registration of change within 3 days from the date when the shareholders change, and shall submit the legal person qualification certificate or the identity certificate of the new shareholders". In other words, if the company's equity changes, it should first go through the change registration with the industrial and commercial department, and then take the initiative to report and pay taxes to the local tax department on the individual equity transfer. According to Paragraph 9 of Article 8 of the Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China, "the income from property transfer refers to the income obtained by individuals from the transfer of securities, equity, buildings, land use rights, machinery and equipment, vehicles, boats and other property". Therefore, the income from individual equity transfer belongs to the income from property transfer and should be subject to personal income tax. The income from the transfer of property is levied at a tax rate of 2%, and its taxable income is calculated according to the fifth paragraph of Article 6 of the Individual Income Tax Law of the People's Republic of China, "The income from the transfer of property is the taxable income after deducting the original value of the property and reasonable expenses from the income from the transfer of property". Therefore, the personal income tax payable on the income from the transfer of equity = (the income from the transfer of equity-the amount paid for the acquisition of equity-during the transfer) (Regarding the determination of the original value and expenses, the taxpayer must provide relevant legal and valid documents. In addition, the equity transfer agreement concluded is a document of property right transfer, and both parties should also pay stamp duty at five ten thousandths of the agreed price (the amount contained). Legal objectivity:

How to pay the income tax on the transfer of equity by partnership enterprises "Notice of State Taxation Administration of The People's Republic of China on Strengthening the Collection and Management of Personal Income Tax for High-income earners" (Guo Shui Fa [211] No.5) stipulates that all 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 should be included in the income from production and operation. The Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Printing and Distributing (Caishui [2] No.91) stipulates: Article 4 The balance of the total income of a sole proprietorship enterprise and a partnership enterprise (hereinafter referred to as the enterprise) 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 the income from the production and operation of individual industrial and commercial households in the individual income tax law. 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. According to the principle that the income from the production and operation of the partnership is divided first and then taxed, for individual investors, according to the taxable items of the income from the 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 personal income tax; For investors of corporate enterprises, enterprise income tax shall be paid at the applicable tax rate. In some places, in order to encourage equity investment partnership enterprises, regarding the income obtained by individual partners in partnership equity funds, 2% personal income tax is levied on individual partners who do not perform partnership affairs, and 5% to 35% cumulative income tax is levied on individual partners who perform partnership affairs according to the production and operation income of individual industrial and commercial households. For example, the Notice of Shanghai Finance Office, Shanghai Administration for Industry and Commerce, State Taxation Bureau and Local Taxation Bureau on Industrial and Commercial Registration of Equity Investment Enterprises in this Municipality (Shanghai Finance Office [28] No.3) stipulates that the natural person general partner who carries out the partnership affairs of a limited partnership enterprise shall apply 5%-35% of taxable items derived from the production and operation of individual industrial and commercial households in accordance with the Individual Income Tax Law of the People's Republic of China and its implementing regulations. A natural person limited partner who does not carry out the partnership affairs of a limited partnership enterprise shall, in accordance with the provisions of the Individual Income Tax Law of the People's Republic of China and its implementing regulations, calculate and pay personal income tax according to the taxable items of interest, dividends and bonuses at the tax rate of 2%. In some places, individual income tax is uniformly levied at the rate of 2% on natural person partners of equity investment partnerships. For example, Beijing Opinions on Promoting the Development of Equity Investment Fund Industry (Beijing Finance Office [29] No.5) stipulates that individual income tax shall be levied on the income obtained by individual partners in partnership equity funds according to the items of interest, dividends, bonus income or property transfer, and the tax rate is 2%. With the issuance of the Notice of the State Council on Cleaning up Standardized Tax Preferential Policies (Guo Fa [214] No.62), these irregular tax preferential policies will be gradually cleaned up. Guo Fa [214] No.62 requires all localities to comprehensively clean up existing tax preferential policies, and points out that without the approval of the State Council, all departments may not stipulate specific tax preferential policies when drafting other laws, regulations, rules, development plans and regional policies.