Analysis Of Individual Income Tax On Pfer Of Shares

The pferor is no longer a shareholder of the company and the assignee becomes the shareholder of the company. The pferor will no longer enjoy the shareholder's rights and interests in the pferred part, and the assignee will enjoy the shareholders' rights and interests on the part he has already obtained.

1, the scope of personal income tax collection of equity pfer. The natural shareholders of the company pfer their shares of the holding company to other natural persons or enterprises, and pay personal income tax according to their pfer income.

According to the new second revised and revised People's Republic of China personal income tax law (hereinafter referred to as the "personal income tax law"), the provisions of the ninth and the following provisions of the personal income tax law (hereinafter referred to as the "personal income tax law") include the pfer of personal income tax, including the pfer of property. The newly implemented People's Republic of China personal income tax law (hereinafter referred to as the "Implementation Regulations") stipulates that the proceeds from the pfer of property shall be the proceeds obtained by individuals in the pfer of securities, shares, buildings, land use rights, machinery and equipment, boats and other properties. Article ninth stipulates that the method of levying personal income tax on the proceeds of stock pfer shall be separately formulated by the financial department of the State Council and submitted to the State Council for approval and implemented after approval by the State Council's financial department, "the law of the people's Republic of China" (hereinafter referred to as the "Regulations on the implementation of the regulations") is made in the form of "income tax" in the Ninth Section of the ninth paragraph of the law of the people's Republic of China (hereinafter referred to as the "Implementation Regulations"). (ninth)

2. The calculation of personal income tax on the pfer of shares is stipulated in the sixth section and fifth paragraph of the personal income tax. The calculation method of personal income tax for property pfer is the amount of taxable income after deducting the balance of the original value of property and the reasonable expenses after the pfer of property income.

The twenty-second provision of the Implementing Regulations stipulates that the proceeds from the pfer of property shall be calculated according to the balance of the original income and the reasonable expenses after the pfer of the income of the property. The nineteenth provision stipulates that the original value of the fifth items mentioned in the sixth paragraph, the first paragraph of the tax law shall be the purchase price and the relevant fees paid according to the regulations.

Then, what is a reasonable fee? There is no clear provision in law. Generally, it refers to the necessary expenses for the pfer of stock rights.

The third section and fifth paragraph of the personal income tax law stipulate that the income from royalties, interest, dividends, bonus income, property lease income, property pfer income, incidental income and other income shall be subject to a proportional tax rate of twenty percent.

That is to say, the calculation formula of individual income tax on equity pfer is: personal income tax payable = (equity pfer income - principal (original value) - reasonable cost) * 20%.

3, the pfer of individual income tax withholding agent taxpayers refers to the units directly prescribed by the tax law or the individuals who have the duty to pay taxes. The withholding agents refer to the units and individuals who have the obligation to withhold, collect, collect and pay taxes in accordance with the laws and administrative regulations.

According to the eighth provision of the "personal income tax law", the individual income tax shall be the tax earner of the income, and the withholding agent shall be the unit or individual paid.

In the pfer of shares, the pferor is the taxpayer, and the withholding party is the withholding agent or the duty paying agent.

The thirtieth law of the People's Republic of China tax collection and Administration Law (hereinafter referred to as the tax administration law) stipulates that the withholding agents shall perform the obligation of withholding or collecting taxes in accordance with the provisions of laws and administrative regulations.

Units and individuals who have no obligation to withhold or collect taxes shall not be required to perform their duties of withholding or collecting taxes.

When a withholding agent performs the obligation of withholding or collecting taxes according to law, the taxpayer shall not refuse it.

If the taxpayer refuses, the withholding agent shall report promptly.

Handle.

Three, the spirit of the document on the payment of personal income tax on the pfer of shares is the spirit of the document on the payment of personal income tax on the pfer of shares in the document No. [2009]85 of the state tax.

1, the parties to the equity paction, after signing the equity pfer agreement and completing the pfer of share rights, before pferring the registration of shares to the enterprise, the pferor or the pferee who has the duty of paying taxes or withholding or paying the obligations shall go to the competent tax authorities for tax payment (withholding) declaration, and pay the personal income tax payment certificate or tax exemption or no tax certificate to the administrative department for Industry and Commerce for registration of stock rights change.

2, the equity trading parties have already signed the equity pfer agreement, but when the equity pfer paction is not completed, the enterprise should fill in the "personal shareholders' change report form" when applying for the registration of equity changes to the administrative department for Industry and commerce.

3, the individual income tax of individual shareholders' pfer of shares shall be the competent tax authority where the place where the equity change is located.

Taxpayers or withholding agents should go to the competent tax authorities for tax declaration and tax warehousing procedures.

The competent tax authorities shall, according to the provisions of the "personal income tax law" and the "tax collection and management law", obtain personal equity pfer information, manage, assess and inspect the tax related matters concerning the pfer of shares, and punish the tax violations involved in accordance with the law.

4, the tax authorities should strengthen the assessment and examination of the basis of tax assessment for pfer of shares.

The relevant information on the pfer of shares pferred by withholding agents or taxpayers should be carefully examined to determine whether the pfer of shares is in line with the principle of independent paction and whether it is in line with the rational economic behavior and the actual situation.

If the tax basis for declaration is obviously low (such as parity and low price pfer) and without justifiable reasons, the competent tax authorities may approve the net assets share corresponding to the net assets per share or the share proportion enjoyed by individual shareholders.

5, the tax authorities should establish the internal control mechanism of individual income tax on equity pfer income.

The tax authorities should establish the personal income tax electronic ledger for pfer of shares, register the individual shareholders of the enterprises under their jurisdiction, and input relevant information of individual shareholders into the computer system, and implement dynamic management.

The various departments inside the tax authorities are responsible for information acquisition, evaluation and auditing, tax collection and warehousing, feedback inspection and so on. All departments should strengthen ties and cooperate closely to form a complete management chain.

6, the tax authorities in various localities should attach great importance to the management of personal income tax collection and pfer, and take effective measures in accordance with the requirements of this circular.

We must strive for the support of the local Party committees and governments, strengthen ties and cooperation with the administrative departments for Industry and commerce, and regularly take the initiative to obtain information on the registration of equity changes from the administrative departments for Industry and commerce.

It is necessary to do a good job in publicizing and coaching relevant tax laws and policies to taxpayers, withholding agents and enterprises with equity changes, so as to ensure timely and full storage of taxes.