{"id":17490,"date":"2026-09-09T14:01:38","date_gmt":"2026-09-09T06:01:38","guid":{"rendered":"https:\/\/www.qicaiying.cn\/?p=17490"},"modified":"2026-09-09T14:01:43","modified_gmt":"2026-09-09T06:01:43","slug":"%e5%a4%96%e7%b1%8d%e8%82%a1%e4%b8%9c%e5%88%86%e7%ba%a2%e5%85%8d%e7%a8%8e%e6%97%b6%e4%bb%a3%e7%bb%88%e7%bb%93%ef%bc%9a1000%e4%b8%87%e5%88%b0%e6%89%8b%ef%bc%8c%e7%9b%b4%e6%8e%a5%e5%b0%91200%e4%b8%87","status":"publish","type":"post","link":"https:\/\/www.qicaiying.cn\/en\/archives\/17490","title":{"rendered":"The Era of Tax-Free Dividends for Foreign Shareholders Has Come to an End: Out of 10 Million, 2 Million Is Immediately Deducted"},"content":{"rendered":"

On September 1, 2026, a measure that had been implementedMore than 30 years<\/strong>The tax incentive policy has officially come to an end.<\/p>\n\n\n\n

On that day, the Ministry of Finance and the State Taxation Administration jointly issued the \u201cAnnouncement on Matters Concerning Individual Income Tax Policies for Dividends and Bonuses Received by Foreign Individuals\u201d (Announcement No. 27 of 2026 by the Ministry of Finance and the State Taxation Administration), which clarifies that:Income from dividends and profits received by foreign individuals from foreign-invested enterprises is subject to individual income tax under the \u201cinterest, dividends, and profits\u201d category, with a tax rate of 20%.<\/strong><\/a><\/a>The<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

This means that, since 1994, foreign individuals have received dividends from foreign-invested enterprisesCompletely tax-free<\/strong>That era has officially come to an end.<\/a>The<\/p>\n\n\n\n

In a nutshell:For the same dividend payment of 10 million, foreign shareholders used to pay no tax at all, but now they have to pay 2 million.<\/strong><\/p>\n\n\n\n

This isn\u2019t just \u201cthe boy who cried wolf\u201d\u2014it\u2019s a policy that has already been implemented.<\/p>\n\n\n\n

I. What exactly has changed about this policy?<\/h2>\n\n\n\n

Old policy: Tax-free for more than 30 years<\/h3>\n\n\n\n

According to Item (8) of Article 2 of the \u201cNotice of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues Concerning Individual Income Tax\u201d (Cai Shui Zi [1994] No. 20), issued in 1994, income in the form of dividends and profits received by foreign individuals from foreign-invested enterprises,Temporary Exemption from Personal Income Tax<\/strong><\/a>The<\/p>\n\n\n\n

This policy was introduced in the early days of reform and opening up with the aim of attracting foreign investment.<\/a>. For more than 30 years, a large number of foreign individual shareholders have thus enjoyed tax-free dividends.<\/p>\n\n\n\n

New Policy: Taxation Will Be Uniformly Based on 20%<\/h3>\n\n\n\n

Effective September 1, 2026,Item (8) of Article 2 of Document No. 20 [1994] of the Ministry of Finance and Taxation is hereby officially repealed.<\/strong><\/a><\/a>The<\/p>\n\n\n\n

Hereinafter, dividends received by foreign individuals from foreign-invested enterprises shall, like those received by domestic individual shareholders, be uniformly subject to individual income tax under the category of \u201cinterest, dividends, and bonuses,\u201d and shall be subject to20% Tax Rate<\/strong>The<\/p>\n\n\n\n

Who withholds the tax? When is it due?<\/h3>\n\n\n\n

The announcement clarifies tax administration responsibilities<\/a><\/a>::<\/p>\n\n\n\n