The Ministry of Finance and the State Taxation Administration have announced that dividend and bonus income received by foreign individuals from foreign-invested enterprises will be subject to individual income tax at a 20% rate under the category of "interest, dividends, and bonuses."
Foreign-invested enterprises paying dividends and bonuses to foreign individuals must withhold and remit the tax, and complete filing and payment by the 15th day of the month following payment. If withholding is not completed, the foreign individual must pay the tax themselves by June 30 of the following year, or within the deadline set by tax authorities. The new rules take effect on September 1, 2026, and the related 1994 regulations will be repealed at the same time.
China Sets 20% Tax on Dividends Paid to Foreign Individuals
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
