Foreign individuals receiving dividends from foreign-invested enterprises are subject to 20% individual income tax

PANews reported on September 1 that the Ministry of Finance and the State Taxation Administration issued an announcement today stating that dividend and bonus income obtained by foreign individuals from foreign-invested enterprises shall be subject to individual income tax under the item "interest, dividends, and bonuses," with an applicable tax rate of 20%. When foreign-invested enterprises pay dividends and bonuses to foreign individuals, they must withhold and remit the tax, and file and pay the tax before the 15th of the month following the payment. If withholding is not carried out, the foreign individual receiving the income shall pay the tax on their own before June 30 of the following year, and if the tax authorities issue a notice with a deadline, the tax shall be paid within the prescribed period. The announcement will take effect on September 1, 2026, and the relevant old regulations from 1994 will be repealed simultaneously.