China Ends 30-Year Tax Exemption on Dividends for Foreign Individuals: What Shareholders Need to Know
For over three decades, foreign individuals have enjoyed a temporary exemption from individual income tax on dividends and bonuses received from FIEs in China. That exemption, established in 1994 under the Cai Shui Zi [1994] No. 20 notice, was designed to attract foreign investment during China’s reform and opening-up era .