Equity transfer needs to be taxed. If the transferor is an individual, the personal income tax rate is 20%. If the transferor is a company, there are many taxes and fees involved, and enterprise income tax and stamp duty need to be paid. Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC) Article 16 Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China Article 6 People's Republic of China (PRC) Individual Income Tax Law Article 2 People's Republic of China (PRC) Individual Income Tax Law Article 3.