China's Ministry of Finance and State Taxation Administration have issued Announcement No. 27 of 2026, ending the tax exemption on dividends and bonuses derived by foreign individuals (nationals) from foreign-invested enterprises (FIEs) in China. This exemption was originally provided by the now-repealed Article 2, Paragraph 8 of the 1994 Notice on certain individual income tax policies.
Effective 1 September 2026, dividends and bonuses received by foreign individuals from FIEs are subjec…