Tag Archives: Asset Transfer

IIT ON INDIVIDUALS’ ASSET CONTRIBUTIONS TO EQUITY
Jul. to Sep. 2015

Through a series of notices, the State Administration of Taxation (SAT) has taken the position that an individual’s contribution of non-monetary assets in exchange for equity is subject to individual income tax (IIT) at the time of contribution to equity. Since the value of such assets may have substantially appreciated, SAT Announcement [2015] No. 20 permits taxpayers to amortize IIT on gains from the appreciation over five years. Continue reading