Individual Income Tax Law The place of tax receipt is in the order of the place where the withholding agent is located, the place where the individual holds the office or the employer is located, the place where the actual business is located, the place where the household registration is located, and the place of habitual residence Equity transfer The place where income is taxed is a special case. State Administration of Taxation on Strengthening the Collection of Income from Equity Transfer individual income tax Article 3 of the Notice on Management (Guo Shui Han [2009] No. 285) stipulates that the individual income tax on the income from the transfer of individual shareholders' equity shall be incurred Change in equity The local tax authority where the enterprise is located is the competent tax authority. Taxpayers or withholding agents shall go through tax declaration and tax warehousing procedures with the competent tax authorities.
Therefore, if a resident individual transfers his or her equity to an individual or enterprise, the tax payment place should be the location of the enterprise where the equity change occurred.
What if the transferor is an overseas individual? First of all, according to the relevant provisions of the tax treaty between the country where the equity transferor is located and China, it is clear that the Chinese tax authorities have the right to tax this income. If China has the right to tax, the tax will still be stored in the place where the equity change enterprise is located.