Beijing has proceeded to impose a 20% tax on income from dividends and additional remuneration received by foreign citizens from foreign-interest enterprises in the Chinese market.
The measure went into effect on Tuesday, according to a joint statement from China's Ministry of Finance and the State Tax Administration.
Chinese tax law has for years provided for a 20% rate on these incomes. However, since 1994 a temporary exemption for foreign citizens had been approved, as part of Beijing's effort to strengthen the opening of the economy and attract foreign investment.
With the activation of the measure, the tax exemption that remained in force for more than three decades ends.
Source: RES-EAP
The measure went into effect on Tuesday, according to a joint statement from China's Ministry of Finance and the State Tax Administration.
Chinese tax law has for years provided for a 20% rate on these incomes. However, since 1994 a temporary exemption for foreign citizens had been approved, as part of Beijing's effort to strengthen the opening of the economy and attract foreign investment.
With the activation of the measure, the tax exemption that remained in force for more than three decades ends.
Source: RES-EAP
