Foreign media: The Chinese tax authorities announced that, effective immediately, the tax exemption policy for foreign individuals receiving dividends and bonuses from foreign-invested enterprises will be abolished, and such income will now be subject to individual income tax at a rate of 20%.
Relevant departments stated that this measure involves personal income tax items such as "interest, dividends, and bonus income," aiming to promote tax system unification.
This tax exemption policy was introduced in 1994 as part of efforts to attract foreign investment and advance reform and opening-up. Now, eliminating differential treatment is seen as contributing to tax fairness.
Experts note that previously, foreign investors enjoyed dividend tax exemptions while domestic investors had to pay taxes, leading to institutional inequality. In the future, China's core competitiveness in attracting foreign investment will rely more on market size, industrial systems, and rule-of-law environment, rather than single tax incentives.
Original article: toutiao.com/article/1875141189489664/
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