I. Earning dividends and bonuses
According to the provisions of China's tax law, dividends of individual shareholders belong to "interest, dividends and dividend income" in personal income, and the personal income tax rate of 20% is applicable. However, for natural person shareholders who hold shares, the applicable individual income tax policies are different according to the holding time. According to the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance and the Securities Regulatory Commission of the People's Republic of China on Relevant Issues Concerning Individual Income Tax Policies for Dividends and Bonuses of Listed Companies (Caishui [2065438+05]10/), the summary is as follows:
Second, the equity transfer
In 20 14, State Taxation Administration of The People's Republic of China issued "Measures for the Administration of Individual Income Tax on Equity Transfer (Trial)" (State Taxation Administration of The People's Republic of China Announcement No.67 of 20 14), which stipulated the relevant issues of individual income tax on equity transfer.
(A) the definition of individual equity transfer
Equity transfer refers to the behavior of individual (natural person) shareholders to transfer their equity or shares of enterprises (excluding sole proprietorship enterprises and partnership enterprises) invested in China to other individuals or legal persons, including the following situations:
1, sell the equity;
2. The company repurchases equity;
3. When the issuer issues new shares to the public for the first time, the shareholders of the invested enterprise will sell their shares to investors in the form of public offering;
4. The equity is forcibly transferred by judicial or administrative organs;
5. Investing abroad with equity or conducting other non-monetary transactions;
6. Pay off debts with equity;
7. Other equity transfer behaviors.
(II) Income from individual equity transfer
Personal income from equity transfer, that is, the balance of equity transfer income after deducting the original value of equity and reasonable expenses, is taxable income, and personal income tax is calculated and paid at the tax rate of 20% according to "property transfer income". Reasonable expenses refer to the relevant taxes and fees paid in accordance with the regulations when the equity is transferred. Therefore, the two most important factors involved in the calculation of personal income from equity transfer are the income from equity transfer and the confirmation of the original value of equity.
1, income from equity transfer
Income from equity transfer refers to cash, objects, securities and other forms of economic benefits obtained by the transferor due to equity transfer. All kinds of money related to equity transfer obtained by the transferor, including liquidated damages, compensation and other currencies, assets and rights and interests in various names, shall be incorporated into equity transfer income.
At the same time, Announcement No.67 stipulates that according to the transfer contract, the proceeds that meet the agreed conditions shall be regarded as the proceeds from equity transfer. That is to say, if there are gambling conditions or other conditions in the process of equity transfer, the subsequent additional payment made by the transferor to the transferee (i.e. prepayment+additional payment in case of additional gambling) should also be incorporated into the equity transfer income.
Under any of the following circumstances, the competent tax authorities may verify the transferor's equity transfer income in turn according to the net assets verification method, analogy method and other reasonable methods:
1. The declared income from equity transfer is obviously low without justifiable reasons;
2. Failing to file tax returns within the prescribed time limit, and being ordered by the tax authorities to file tax returns within the time limit, failing to file tax returns within the time limit;
3. The transferor is unable to provide or refuses to provide relevant information on equity transfer income;
4. Other circumstances in which the income from equity transfer should be verified.
2. Confirmation of the original value of equity
The original value of individual equity transfer shall be confirmed in the following ways:
1. For the equity acquired by cash contribution, the original value of the equity shall be confirmed according to the sum of the actually paid price and the reasonable taxes directly related to the acquisition of the equity;
2. The original value of the equity acquired by investment in non-monetary assets shall be confirmed according to the sum of reasonable taxes and fees directly related to the price of non-monetary assets and the acquisition of equity at the time of investment or approved by the tax authorities;
3. If the equity is obtained through free transfer, and the above-mentioned equity transfer income is obviously low, but it is considered reasonable, the original value of the equity shall be confirmed according to the sum of the reasonable tax incurred in obtaining the equity and the original value of the original holder's equity;
4. If the invested enterprise converts capital reserve, surplus reserve and undistributed profit into share capital, and individual shareholders have paid personal 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 and fees;
5. In addition to the above circumstances, the original value of the equity shall be reasonably confirmed by the competent tax authorities in accordance with the principle of avoiding repeated collection of individual income tax.
If the equity transferor is approved by the competent tax authorities and collects individual income tax according to law, the original value of the equity transferee shall be confirmed by the sum of the reasonable taxes and fees incurred when obtaining the equity and the equity transfer income of the equity transferor approved by the competent tax authorities.
If an individual fails to provide complete and accurate proof of the original value of the equity and cannot correctly calculate the original value of the equity, the original value of the equity may be verified by the competent tax authorities.
It should be noted that if an individual obtains the equity of the same invested enterprise for many times, the original value of the equity will be determined by the "weighted average method" when transferring part of the equity.
In practice, especially under the registered capital subscription system, it often happens that shareholders transfer their shares without completing all their capital contribution obligations. For how to calculate personal income tax on such share transfer, please refer to China Tax "How to calculate tax on subscribed shares without capital contribution?"
Third, the partnership needs to pay taxes "through"
The tax policies applicable to partnership enterprises are different from those of corporate shareholders and natural person shareholders. From the perspective of income tax policy, partnership is not an independent taxpayer.
The Ministry of Finance's Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on the Income Tax of Partners in Partnership Enterprises (Caishui [2008] 159) clearly states that each partner is the taxpayer of a partnership enterprise. If the partners of a partnership are natural persons, they shall pay individual income tax; If the partners are legal persons or other organizations, they shall pay enterprise income tax. However, when calculating the taxable income, the relevant policies of individual income tax should be applied, in accordance with the Provisions on the Collection of Individual Income Tax for Investors in Sole proprietorship Enterprises and Partnership Enterprises (Caishui [2000] No.91) and the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Relevant Issues Concerning Adjusting the Pre-tax Deduction Standard of Individual Income Tax for Sole proprietorship Enterprises and Partnership Enterprises (Caishui [2008] No.65).
Circular 59 and subsequent restructuring policies regulate enterprise income tax, that is, enterprises pay enterprise income tax. Therefore, the special tax treatment policy cannot be applied to the foreign investment of partnership enterprises with equity. Due to the particularity of partnership enterprises, neither the deferred tax policy of enterprise investment in document 1 16 nor the deferred tax policy of personal investment in document 4 1 can be applied. In this way, the income generated by the partnership's foreign investment in equity should be included in the taxable income of the investment year and declared to pay income tax. Therefore, for investors, it is necessary to combine specific investment plans, choose appropriate investment methods and investors, and maximize investment returns.
In the current capital operation business, individual equity transfer has the characteristics of extensive transactions, complicated situations and hidden transfer. In order to better obtain the information of equity transfer, the tax authorities have strengthened cooperation with the industrial and commercial departments, and realized the timely sharing of tax-related charging information through the tax-related information exchange platform. In addition, in the "20 17 Key Work Arrangement for Tax Inspection" issued by State Taxation Administration of The People's Republic of China Inspection Bureau (Announcement of the State Administration of Taxation [20 17] No.29), State Taxation Administration of The People's Republic of China Inspection Bureau requires that the transfer of equity be the starting point to carry out personal income tax and related enterprise income tax inspection. From this point of view, the tax issues involved in equity transfer will be the key direction of tax inspection this year. In order to reduce and avoid unnecessary tax risks, individual shareholders should attach great importance to tax-related issues in equity transactions, and at the same time, when investing in equity, they should make relevant tax planning for investment forms, investors and places.
Fourth, foreign equity investment.
Since China's tax law regards the contribution of non-monetary assets as two links: transfer and contribution, investors need to bear the corresponding taxes and fees in the transfer link. At the same time, in order to encourage and guide investment, the state has successively introduced a series of tax policies. In 2009, the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China issued the Notice on Several Issues Concerning the Treatment of Enterprise Income Tax in Enterprise Reorganization (Caishui [2009] No.59). There have been two completely different views on whether Circular 59 can be applied to natural person shareholders: it can be applied and it can't be applied. In 20 15, the Announcement of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Several Issues Concerning the Collection and Management of Enterprise Income Tax in Enterprise Restructuring Business (State Taxation Administration of The People's Republic of China Announcement No.48 of 20 15) was issued. Announcement No.48 stipulates that in the process of restructuring transaction, the transferor of equity acquisition may be a natural person; At the same time, it also stipulates that natural persons among the parties shall be taxed in accordance with the relevant provisions of individual income tax. Announcement No.48 makes it clear that natural person shareholders can participate in enterprise restructuring, but the income tax policy can not be applied to the special tax treatment of Document No.59, and should be implemented according to the relevant policies of individual income tax.
In 20 15, the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China issued the Notice on Individual Income Tax Policies for Personal Non-monetary Assets Investment (Caishui [2065438+05] No.465438+0), which stipulated that individuals invest abroad with equity, which belongs to the simultaneous transfer of equity and investment. Income from individual equity transfer shall be calculated and paid according to the item of "income from property transfer". Individuals shall report and pay taxes to the competent tax authorities within 15 days of the month following the occurrence of the above taxable acts. If taxpayers have difficulty in paying taxes in one lump sum, they can reasonably determine the installment payment plan and report it to the competent tax authorities for the record, and pay individual income tax in installments within no more than five calendar years (inclusive) from the date of the above taxable behavior. Therefore, according to the current policy, there are two ways to deal with the personal income tax of individuals investing abroad by means of equity: calculating the transfer income at one time according to the "property transfer income" project, and reporting and paying personal income tax; Or pay taxes in installments for five years. This is different from corporate shareholders, so special tax treatment cannot be applied.