China ends dividend tax exemption for expats, applying 20% rate

China’s tax authorities announced on Tuesday that the country would end the tax exemption for dividends earned by expatriates at foreign-funded firms, setting a 20 per cent rate effective immediately. The measures mainly target “interest, dividend and bonus income” for individual income tax purposes, according to a joint statement from the Ministry of Finance and State Taxation Administration. State news agency Xinhua said the change was needed for the “unification of the tax system”. In 1994,...