On December 14, 2010, the State Administration of Taxation (SAT) published the Announcement on Issues Concerning Assessing and Determining the Basis of Calculating Individual Income Tax on Incomes Derived from Equity Transfer (SAT Announcement [2010] No. 27, “Announcement No. 27”), clarifying relevant issues concerning the individual income tax calculation basis where a natural person obtains incomes from transferring the equity (shares) he/she holds in an enterprise (“Equity Transfer”, excluding the transfer of shares of listed companies).Announcement No. 27 became effective on January 14, 2011.