"Share premium" reserve exempt from personal income tax, "capital premium" to levy personal income into capital. Share premium, premium refers Corp. shares issued, payments exceed the amount actually received aggregate nominal amount of shares. The capital premium refers to a limited liability company in the process of raising funds, the investor's invested capital exceeds the amount of its registered capital. According to regulations, joint-stock company with a "capital reserve does not belong to dividends, dividends nature, amount of share capital by individuals and not as personal income, not individual income tax. Conversed on Limited capital premium paid-in capital , choose according to "interest, dividends and bonuses" project, according to 20% personal income tax. capital premium reserve capital increase capital formation, are exempted from corporate income tax based on the provisions of the company to the capital reserve equity premium turn formed by equity investment companies are not taxable as income tax or corporate income tax-free treatment, so they do not have to invest in terms of corporate income tax and withholding payment problems. can not be transferred to capital reserve if capital increase, needs to pay corporate income tax In accordance with current accounting standards, the value of individual types of assets generated during the holding period included a capital reserve temporarily, are "unrealized gains" from the property, value-added part of the disposal of assets that can only be confirmed when the earnings actually realized gains and losses, Before disposal of assets, can not increase capital if companies will increase capital which were, in fact, is the appropriate asset disposal proceeds to be confirmed in advance, and conversed with the capital, the natural need to pay corporate income tax. summing up enterprises use retained earnings and capital reserve into capital, as the case of tax regulations by tax treatment, if not handled properly, it will bring to the enterprise and shareholder tax risks.