Pay individual income tax on the income from liquidated damages obtained in the process of individual equity transfer.
 [Legal Basis]
 Article 2 of the Individual Income Tax Law.
 Individual income tax shall be paid on the following individual income:
 （1） Income from wages and salaries;
 （2） Income from remuneration for labor services;
 （3） Income from author's remuneration;
 （4） Income from royalties;
 （5） Business income;
 （6） Income from interest, dividends and bonuses;
 （7） Income from lease of property;
 （8） Income from property transfer;
 （9） Accidental income.
 Individual income tax on income derived by individual residents from items 1 to 4 of the preceding paragraph shall be calculated on a consolidated basis according to the tax year; Individual income tax shall be calculated monthly or sub item by item for non resident individuals who obtain income from items 1 to 4 of the preceding paragraph. Taxpayers who derive income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this Law.