Is the recipient of a gratuitous gift of equity subject to personal income tax?

The recipient of the gift of equity is subject to personal income tax on the basis of incidental income.

1, to accept the gratuitous gift of equity, is subject to personal income tax.

2, the acceptance of gratuitous gift of equity, by the donee in accordance with the incidental income withholding and payment of 20% personal income tax.

3, the gift is not able to provide any labor, gratuitous. The gift is not taxed. However, gratuitous gifts generally require justification, otherwise they may be considered incidental income.

The production and business income of individual industrial and commercial households includes four aspects:

(1) The income obtained by urban and rural individual industrial and commercial households who have been approved by the industrial and commercial administration department to start business and receive business licenses, and who are engaged in the production and business of industry, handicrafts, construction, transportation, commerce, food and beverage, service, repair, and other industries.

(2) Individuals approved by the relevant government departments, obtaining a business license, engaging in schooling, medical care, consulting and other paid service activities to obtain income.

(3) Income obtained by other individuals engaged in individual industrial and commercial production and business, both individuals temporarily engaged in production and business activities.

(4) All taxable incomes related to production and operation obtained by the above individual industrial and commercial households and individuals.

The income from contracting and leasing to enterprises and institutions refers to the income obtained by individuals from contracting and leasing, as well as subcontracting and subleasing, including the income in the nature of wages and salaries obtained by individuals on a monthly or monthly basis.

Baidu Encyclopedia - Individual Income Tax