Global Daily Tax News, China Introduces WHT On Foreign-Invested Enterprises' Dividends, (Sep 3, 2026)

China's Ministry of Finance and the State Administration of Taxation have announced that 20 percent tax will newly apply to dividends and bonuses paid by foreign-invested enterprises to foreign individuals.

The income will be taxable under the category "interest, dividends, and bonuses" at a rate of 20 percent, the announcement states.

The announcement further provides: "When a foreign-invested enterprise pays dividends to a foreign individual, it shall withhold and pay the tax on their behalf and file a tax return within 15 days of the following month after the payment."

"If the foreign-invested enterprise fails to withhold and pay the tax, the foreign individual receiving the dividend shall pay the tax before June 30 of the following year."

The announcement is effective from September 1, 2026.