The Measures for the Administration of Individual Income Tax on Equity Transfer has corresponding provisions:

Article 4 When an individual transfers equity, the taxable income shall be the balance of the equity transfer income after deducting the original value of the equity and reasonable expenses, and personal income tax shall be paid according to the "property transfer income".

Personal income tax on personal equity transfer shall be paid by the transferor of equity and withheld and remitted by the transferee. The withholding agent shall, within 5 working days after the signing of the relevant equity transfer agreement, report the relevant information about the equity transfer to the competent tax authorities.

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Relevant laws and regulations of Measures for the Administration of Individual Income Tax on Equity Transfer:

Article 7? The income from equity transfer refers to the cash, objects, securities and other forms of economic benefits obtained by the transferor due to equity transfer, and the transferor obtains various funds related to equity transfer, including liquidated damages, compensation and other names.

According to the contract, the taxpayer's subsequent income after meeting the agreed conditions shall be regarded as the income from equity transfer. Income from equity transfer shall be determined in accordance with the principle of fair trade.

Article 8? If the equity transfer income of the equity transferor is approved by the competent tax authorities and personal income tax is levied according to law, the original value of the equity of the equity transferee is confirmed by the sum of the equity transfer income approved by the competent tax authorities and the reasonable taxes incurred when acquiring the equity.

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