If the transfer of assets between resident enterprises involves real estate, land use rights, inventory and equipment, value-added tax shall be levied in principle. Therefore, regardless of whether the assets are transferred between the parent company and the subsidiary company, the transferor shall be deemed to pay the value-added tax according to the fair value of the goods sold, real estate and intangible assets;

However, if the special conditions stipulated in the tax policy are met (for example, State Taxation Administration of The People's Republic of China Announcement No.20113 stipulates that the value-added tax can be exempted), the value-added tax will not be levied, and the definition of the special conditions stipulated in the tax policy is not clear, and the understanding of local tax bureaus is still different.