Beijing Scraps Longstanding Tax Break for Foreign Investors’ Dividends

China has formally ended a decades-old tax exemption that spared foreign individuals from personal income tax on dividends and bonuses paid by foreign-invested enterprises.

Effective Tuesday, such income will be subject to a standard 20% tax rate, bringing it in line with the treatment of other dividend and interest income under China’s personal income tax law, according to a joint announcement from the Ministry of Finance and the State Taxation Administration.