Announcement of the Ministry of Finance and the State Taxation Administration
on Matters Concerning the Individual Income Tax Policy
for Dividends and Bonuses Derived by Foreign Individuals
Announcement No. 27 of 2026 of the Ministry of Finance and the State Taxation Administration
Relevant matters concerning the individual income tax policy for dividends and bonuses derived by foreign individuals are hereby announced as follows:
-
Dividends and bonuses income derived by foreign individuals from foreign invested enterprises shall be subject to individual income tax under the category of “income from interest, dividends or bonuses” at a flat tax rate of 20 percent.
-
When a foreign invested enterprise pays dividends and bonuses to a foreign individual, it shall withhold and pay the tax, and file tax returns by the 15th day of the month following the month in which such income is paid. Where a foreign invested enterprise fails to withhold and pay the tax, the foreign individual obtaining such dividends and bonuses shall pay the tax before June 30 of the year following the year in which the income is obtained. Where the tax authority issues a notice requiring tax payment within a prescribed time limit, the foreign individual shall pay the tax within such prescribed time limit.
-
This Announcement shall be implemented as of September 1, 2026. Item (8) of Paragraph 2 of the Notice of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues Concerning Individual Income Tax (Cai Shui Zi [1994] No. 20) shall be repealed simultaneously.
Hereby announced.
Ministry of Finance
State Taxation Administration
September 1, 2026
English
Home
Knowledge
KNOWLEDGE
