Q: I will sell my company to an other person, what is the tax for this action?
R: This action in tax side is share transfer transaction. You are the personal sharehoder of this company?
Q: Yes, and 100% hold of the company.
R: There are two kinds of taxes involved for this transaction.
Stamp tax for the share transfer agreement.
The rate is 5/10000. And the base is the share transfer price.
Individual income taxes:
there are two kinds of individual income taxes involved.
One is levied for undistributed profit. The rate is 20%. At present, there is a temporary exemption tax policy for foreign individual individent obtained profit from foreign companies, if the foreigner is not a resident taxpayer in China, the person can apply for enjoy this policy.
Another individual income tax is for share transfer income. The rate is 20% calculated on the basis of the share transfer profit. If the transfer price is not unfair, the tax office has the right to adjust.
Please contact us with any enquiries
wcx@ruanyinchina.com
m.ypfyvsp.cn
+86 021 6049 2821
+86 189 1629 8482
