Group 1 - The article defines equity as the ownership interest that individuals have in enterprises established within China, excluding sole proprietorships and partnerships [3] - Equity transfer includes various scenarios such as selling equity, company buybacks, and forced transfers by judicial or administrative authorities [5][6] - The article outlines that personal income tax on equity transfer is calculated based on the income from the transfer after deducting the original value of the equity and reasonable expenses [8] Group 2 - Equity transfer income is defined as the cash, physical assets, securities, and other economic benefits obtained from the transfer of equity [14] - The article specifies that the tax authority can determine equity transfer income under certain conditions, such as when the reported income is significantly low without justification [16] - Methods for determining equity transfer income include net asset valuation and comparative analysis with similar transactions [18][20] Group 3 - The article discusses how to confirm the original value of equity, which can be based on actual cash paid, the value of non-monetary assets, or other reasonable expenses related to the acquisition [24] - It emphasizes that the original value should include any reasonable taxes paid at the time of acquisition [24] - The article also mentions that if the equity is transferred at a price significantly lower than its fair value, the tax authority may question the legitimacy of the transfer [25]