Research On The Personal Income Tax Basis Of Stock Transfer Of Non-listed Companies

When there is no bargain price or the price of stock transfer of non-listed companies seemsunreasonable, the tax official will approved composite price to levy the personal income tax.Specifically, the income of stock transfer is assessed by net assets per share or the transfer ofownership to the corresponding share of the net asset, which will underestimate the income ofstock transfer and lead to the loss of income tax of stock transfer. This paper aims to settle upthis problem with a new method of assessing the price of stock transfer of non-listed companies,which help avoid tax loss and improve the tax fairness.In this paper, we choose the industry as our research target and assume that all the asset ofdifferent companies but in the same industry have the same profitability. Then we compute thenet assets per share premium rate of the listed companies in the various industries in order toobtain premium rate of the industry’s average net assets. After that by embedding thenon-tradable discount factor to calculate the non-tradable shares of listed companies in theindustry premium rate of net assets and their approximate net asset premium rate of non-listedcompanies in the industry. Finally, according to the share transfer would constitute a transfer ofcontrol, to decide whether a control premium is included in the composite assessable price.Finally, a case is chosen to estimate the new method and the author analysis the causes ofthe difference between the estimate result and the actual result. At the end of article, we makesome suggestions on improving the levy personal income tax on stock transfer of non-listedcompanies based on the research result.