China ends tax exemption for dividends earned by foreign nationals at foreign-funded firms.

This measure targets interest, dividend, and bonus income for individual income tax purposes. The Ministry of Finance and State Taxation Administration issued a joint statement regarding the change. State news agency Xinhua stated that the change was necessary for the unification of the tax system. In 1994, China introduced a tax exemption on dividend and bonus income for foreign individuals from foreign-invested enterprises to encourage foreign investment. The new policy aims to uphold fairness by ensuring foreign investors no longer receive tax-exempt dividends while Chinese investors pay tax. A tax-service hotline representative noted that it is not yet confirmed if the new rule covers individuals in Hong Kong, Macau, and Taiwan, or foreigners living overseas.