On December 7, 2014, Chinese State Administration of Taxation (SAT) issued a new rule which takes effect on Jan. 1 2015. According to this new rule, tax payers shall declare and pay individual income tax on income derived from equity transfer of a limited libility company in China. The tax rare is 20%. In order to file a tax declaration, the tax payer (seller of the shares) shall present all relavant documents to the local tax authority.