China Ends Tax Exemption on Dividends and Bonuses Derived by Foreign Individuals from Foreign-Invested Enterprises in China

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 This exemption was originally provided by the now-repealed Article 2, Paragraph 8 of the 1994 Notice on certain individual income tax policies.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…