Capital increase is to increase investment, which is a way for the original shareholders to expand their equity or the enterprise to introduce new shareholders. But sometimes this method is illegally used by people to realize the purpose of paying less or no tax when transferring equity. Then, can equity transfer be tax-free after capital increase? 1. The only way for original shareholders to increase the value of original shares is to increase capital by 65,438+0. The original shareholders made non-monetary contributions such as intellectual property rights, patents and trademarks. According to the provisions of the Company Law, non-cash investment needs to be evaluated according to law, and the evaluation can increase the value of non-cash assets through human intervention criteria, so as to achieve the effect of not increasing the value when transferring shares; 2. The original shareholders do not actually contribute capital, but use capital reserve, surplus reserve or undistributed profits to increase capital. On the surface, the original shareholder actually increased the registered capital, but the transferee's equity transfer price actually included capital reserve, surplus reserve or undistributed profit for capital increase. Therefore, the original shareholders used the capital reserve fund, surplus reserve fund or undistributed profit to increase capital, so as to reduce the difference with equity transfer price, which actually evaded the tax obligation when the capital reserve fund, surplus reserve fund or undistributed profit was converted into share capital. Two, the judicial practice of the above tax avoidance can avoid tax? 1. Individuals invest in non-monetary assets to increase their capital, so they cannot avoid taxes reasonably. According to Notice 2 on Individual Income Tax Policies for Personal Non-monetary Assets Investment. If an individual invests in non-monetary assets, the income from the transfer of non-monetary assets shall be recognized according to the assessed fair value. The balance of non-monetary assets transfer income after deducting the original value of assets and reasonable taxes and fees is taxable income. Individual shareholders must pay taxes on their non-monetary contributions. 2. Surplus reserve fund, capital reserve fund and surplus profit are converted into share capital, and tax avoidance is not allowed. According to Article 15 of the Measures for the Administration of Individual Income Tax on Equity Transfer: "(4) If the invested enterprise converts capital reserve, surplus reserve and undistributed profit into share capital, and individual shareholders have paid individual income tax according to law, the original equity value of the newly converted share capital shall be confirmed by the sum of the increased amount and relevant taxes;" Individuals who convert capital reserves, surplus reserves and undistributed profits into share capital also have to pay a tax. Through the above answers, I believe that everyone should have an answer to whether the equity transfer can avoid tax after capital increase. Whether individuals use non-monetary assets to achieve the effect of capital increase through human intervention criteria, or individuals use surplus reserve, capital reserve and undistributed profits to increase capital, equity transfer is inevitable in the end, which must be clear to everyone.