1. In case of individual equity transfer, tax shall be paid according to the following provisions. (I) Business Tax According to the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Business Tax on Equity Transfer (Caishui (2002) 19 1No.), no business tax is levied on equity transfer. (II) Individual income tax 1. According to Article 6, paragraph 5, of the Individual Income Tax Law (revised in 2007) and Article 22 of the Regulations for the Implementation of the Individual Income Tax Law, the balance of individual equity transfer after deducting the original value of the property and reasonable expenses from the equity transfer is taxable income. In fact, this refers to the profit of individual shareholders due to equity transfer, or only in the case of premium transfer, personal income tax is required. If the equity transfer is parity transfer or discount transfer, there is no problem of paying personal income tax. 2. In addition, according to Article 3, paragraph 5 of the Individual Income Tax Law, the individual income tax rate on the income from the transfer of equity by individuals is 20%. Therefore, in the case of equity premium transfer, the calculation formula of individual income tax is: (equity transfer income-investment cost-transfer expense) ×20%= payable individual income tax. 3. The law also stipulates the special circumstances that do not need to pay taxes. 1994, 1996 and 1998, the Ministry of Finance and State Taxation Administration of The People's Republic of China jointly issued the Notice on Temporary Exemption of Individual Income Tax from Stock Transfer and the Notice on Temporary Exemption of Individual Income Tax from Stock Transfer 1996. (III) Stamp Duty Enterprise The two parties shall affix stamp duty on the documents of equity transfer according to the transfer of property rights. The applicable tax rate is 5‰ of the amount stated in the document. Two, belonging to the enterprise equity transfer, pay taxes according to the following provisions. (I) Business Tax According to the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Business Tax on Equity Transfer, no business tax is levied on equity transfer. (II) Enterprise Income Tax According to the Notice of State Taxation Administration of The People's Republic of China on Some Income Tax Issues Concerning Enterprise Equity Investment Business (Guo Shui Fa [2000] 1 18), the income or loss from the transfer of enterprise equity investment refers to the balance after deducting the cost of equity investment from the income from the recovery, transfer or liquidation of equity investment. The income from the transfer of enterprise equity investment shall be incorporated into the taxable income of the enterprise, and the enterprise income tax shall be paid according to law. (III) Stamp Duty The stamp duty shall be affixed to the documents on the equity transfer of the enterprise according to the transfer of property rights, and the applicable tax rate shall be 5‰ of the amount contained in the documents. As can be seen from the above, the tax bureau requires the personal income tax rate to be 20% after the equity transfer. After equity transfer, there are two situations, one is individual equity transfer, and the other is enterprise equity transfer. Among them, in the case of individual equity transfer, the personal income tax rate is 20%, and in the case of enterprise equity transfer, the enterprise income tax is paid, which has no prescribed tax rate.