according to article 2 of State Taxation Administration of The People's Republic of China's announcement on issues related to enterprise income tax (State Taxation Administration of The People's Republic of China announcement No.8, 216):

income tax treatment of transferred assets of enterprises

in case of any of the circumstances specified in article 2 of State Taxation Administration of The People's Republic of China's notice on income tax treatment of enterprises' disposal of assets (Guoshuihan [28] No.828), unless otherwise specified, the transferred assets shall be treated as follows.

according to article 2 of the notice of State Taxation Administration of The People's Republic of China on the income tax treatment of enterprises' disposal of assets (Guo shui Han [28] No.828), in the following circumstances, if an enterprise transfers assets to others, because the ownership of assets has changed, it does not belong to internal disposal of assets, and the income shall be determined as sales.

(1) for marketing or sales;

(2) for social intercourse;

(3) used for employee rewards or benefits;

(4) for dividend distribution;

(5) for foreign donations;

(6) Other purposes for changing the ownership of assets.