1. Business tax. According to the Ministry of Finance and State Administration of Taxation s Notice on Business Tax Issues Related to Equity Transfers (Cai Shui  No. 191), Business tax is not levied on equity transfers. Therefore, equity donations by immediate family members are exempt.
2. Personal income tax. The State Administration of Taxation s Notice on Strengthening the Management of Individual Income Taxes on the Collection of Equity Transfer Income (Guo Shui Han  No. 285) stipulates that after the equity transaction agreement is signed and the equity transfer transaction is completed, the parties to The transferor or transferee who has the obligation to pay taxes or withholding and paying should go to the competent tax authority to apply for tax payment (withholding) declaration, and hold the personal income tax payment certificate or tax exemption or non-taxation for the equity transfer income issued by the tax authority. Proof, go to the industry and commerce administrative department to go through the formalities for registering changes in equity.
3. Stamp duty. According to the Interim Regulations on Stamp Duty, units and individuals who write and receive documents listed in these regulations within the territory of the People s Republic of China are all taxpayers of stamp duty and shall pay stamp duty . Signing of equity transfer documents shall be decalmed in accordance with the property transfer documents at a tax rate of 0.5%. Therefore, immediate relatives use this face-to-face equity as the basis for tax calculation during the gifting process, and can pay stamp duty.