"(Guo [2002] No.420) stipulates that according to the Provisional Regulations on Value-added Tax and its detailed rules for implementation, the scope of collection of value-added tax is to sell goods or provide processing, repair and replacement services and import goods. Transferring all the property rights of an enterprise is an act of transferring the assets, creditor's rights, debts and labor force of the enterprise as a whole. Therefore, the transfer of taxable goods involved in the transfer of all property rights of enterprises does not belong to the scope of VAT taxation, and VAT is not levied. "Reply of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China on the issue of not levying business tax on the transfer of enterprise property rights"
(Guo [2002]165) stipulates that according to the Provisional Regulations on Business Tax and its implementation rules, the scope of business tax collection is the act of providing taxable services, transferring intangible assets or selling real estate with compensation. The transfer of enterprise property rights is the overall transfer of enterprise assets, creditor's rights, debts and labor, and its transfer price is not only determined by the value of assets, but also completely different from the behavior of enterprises selling real estate and transferring intangible assets. Therefore, the transfer of enterprise property rights does not belong to the scope of business tax collection, and business tax should not be levied. Of course, the transfer of intangible assets involved in enterprise property rights is also exempt from business tax.
Income from the transfer shall be subject to enterprise income tax.