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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