Core Viewpoint - The article discusses the taxation implications and methods for determining income from personal equity transfers, highlighting the relevant tax rates and calculation methods for both personal income tax and stamp duty [3][4][5]. Taxation on Personal Equity Transfers - Personal income tax on equity transfer income is taxed at a rate of 20%, calculated as: Tax Payable = (Equity Transfer Income - Original Equity Value - Reasonable Expenses) × 20% [3]. - Stamp duty is charged at a rate of 0.05% on property transfer documents, with a temporary reduction in stamp duty for small-scale taxpayers and individual businesses from January 1, 2023, to December 31, 2027 [3]. Determining Equity Transfer Income - Equity transfer income includes cash, physical assets, securities, and other economic benefits received from the transfer [4]. - Any related payments such as penalties or compensations must be included in the equity transfer income [4]. - The tax authority can assess the equity transfer income if the reported income is significantly low without justification or if the taxpayer fails to provide necessary documentation [4][8]. Confirming Original Equity Value - The original value of equity transferred is determined based on the actual payment made and related reasonable taxes for cash contributions [5]. - For non-monetary asset contributions, the value is based on the price recognized or assessed by tax authorities, including related reasonable taxes [5]. Methods for Tax Authority to Assess Equity Transfer Income - The tax authority may use the net asset method, comparing the equity transfer income to the net asset value per share [8]. - The comparative method allows for assessment based on similar transactions within the same company or industry [8]. - Other reasonable methods may be employed if the above methods face difficulties [8].