The share transfer of foreign invested enterprises involves the enterprise income tax, business tax and stamp tax. According to the stipulations of Income Tax Law of Foreign Invested Enterprises and Foreign Enterprises, the foreign investor shall pay the tax for the income obtained from the transfer of its share in foreign invested enterprises and the tax rate is 20%. The tax rate may be reduced to 10% in case of there are local tax benefit or Agreement on Avoidance of Dual Tax signed between China and the country the foreign investors belong to. Where the Chinese investor transfers the shares in foreign invested enterprise, the Chinese enterprise income tax rate 33% shall apply. In the practice of Chinese tax collection, only the share transfer between related enterprise, may the tax be exempted by the Chinese Administration of Tax. The business tax shall apply when the share transferred is intangible assets. Stamp tax are specially designed for the contracts and other documents and the tax rate is 0.05%.