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Foreigners will have to pay taxes on the dividends, etc.

From Xinhua News Agency, Beijing: On September 1st, the Ministry of Finance and the State Taxation Administration issued a public announcement, clearly stating that starting from September 1st, 2026,foreign individuals who receive dividends and bonuses from foreign-invested enterprises should pay individual income tax at a rate of 20%. To promote reform and opening up and attract foreign investment, China has temporarily exempted foreign individuals from paying individual income tax on dividends and bonuses received from foreign-invested enterprises since 1994. With the establishment of a unified national market, China is gradually clearing and standardizing tax preferential policies. Industry insiders stated that abolishing the policy of exempting foreign individuals from paying individual income tax on dividends and bonuses received from foreign-invested enterprises is conducive to maintaining fair and unified tax systems, promoting the construction of a unified national market, and can also prevent tax loopholes and better exert the regulatory role of taxation.



