Individual Terminating Business, Taxable Amount for Personal Income Recoveries

"PRC Individual Income Tax Law" and its implementing regulations and other rules:  Individual terminates its invested enterprise and business cooperation projects for various reasons, investment, joint venture, co-operation and other acts, other investors.   Partner's acquisition of the equity transfer incomes, liquidated damages, compensation, compensation and amounts recovered by other names, etc., all these belong to the personal income tax and is under the taxable income, it shall be, in accordance with the "transfer of property income" to calculate the applicable requirements of projects to pay personal income tax. The rate is 20%.

Taxable income is calculated as follows:

Taxable income = income individuals who acquire the equity transfer, liquidated damages, compensation, compensation and other items in order to recover the sum of money - the original actual investment (investment amount) and related taxes