The shares transfer process is not complicated, but there are some small mysteries that are easy to ignore. If you are ready to do the share transfer, these "small things" please pay attention to first.

1. Transfer price

There are 3 scenarios:

1) Transfer at par. As no income for the share transfer, there is no individual income tax for the transferor.

2) Transfer over par. The transferor needs to pay individual income tax for the net income.

3) Transfer below par. No individual income tax.

Please note that if the transferor has not injected the capital, at that time, the investment cost is 0, Whether or not the transfer price exceeds the capital attributable to transferor, the transfer price shall be regarded as the net income for the transfer.

2. Capital injection schedule in the company’s article of association

When transferring, if the injection deadline regulated in the article of association already expires, the transferor should first pay the unpaid capital.

3. Accumulated profit in the company.

When transfer the share, in tax side shall regard the process is first distribute the accumulated profit to the transferor and then transfer the share, if the company has accumulated profit, the transferor shall pay individual income tax for the dividend which owned to the share transferred out even there is no distribution. Now there is a temporary tax policy, if the transferor is a foreigner, such individual income tax is exempted.

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