Legal analysis: In the process of individual equity transfer, the invested enterprise, withholding agent and taxpayer should submit relevant materials within the prescribed time limit and apply for withholding (tax payment) declaration. The invested enterprise shall, within 5 working days after the end of the board of directors or shareholders' meeting, submit the original and photocopy of the resolutions and minutes of the board of directors or shareholders' meeting related to changes in equity matters to the competent tax authorities.

Legal basis: Article 2 of the Individual Income Tax Law of People's Republic of China (PRC), individual income tax shall be paid for the following personal income: (1) income from wages and salaries; (2) Income from remuneration for labor services; (3) Income from remuneration; (4) Income from royalties; (5) Operating income; (6) Income from interest, dividends and bonuses; (7) Income from property lease; (8) Income from property transfer; (9) Accidental income. Individual residents who obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax according to the tax year; Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly or itemized basis. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.