The Ministry of Finance and other sectors: 20 per cent tax on dividends earned by foreign individuals from foreign investment enterprises, paid on the basis of “interest, dividends, dividends”

On 1 September, both departments issued a bulletin on matters relating to the personal income tax policy for foreign individuals with dividends. The tax rate of 20 per cent is applied to the personal income tax of foreign individuals derived from dividends obtained by foreign investors, based on “interest, dividends, dividends”. Foreign investment enterprises that pay dividends to foreign individuals are required to pay taxes on their behalf and to declare taxes within 15 days of the payment of the proceeds. Foreign individuals who have received dividends from foreign investors who have not paid their taxes are required to do so before 30 June of the year in which they receive the income; and foreign individuals who have paid within the notice period by the tax authorities are required to do so. The present bulletin shall be implemented as of 1 September 2026。