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China Ends Long-Standing Dividend Tax Exemption for Foreigners, 20% Rate Takes Effect Immediately
China has ended a decades-old personal income tax exemption for foreign individuals receiving dividends from foreign-invested enterprises in the country, with a 20% tax rate taking effect September 1, 2026. The move, announced jointly by China’s Ministry of Finance and State Taxation Administration, effectively ends a preferential treatment that had been in place since 1994. What changed? Under the new policy, dividends and bonus income received by foreign individuals from foreign-invested e
