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.

  
  

  
  

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