China Removes Tax Exemption on Foreigners’ Dividend Incomes

China has ended a decadeslong exemption for individual income tax on dividend payments made by foreign-invested firms, as part of broader tax-system reforms. The change removes a prior tax benefit tied to certain dividends and could increase post-tax cash costs for foreign shareholders. Overall, it is a cautious headline for foreign-invested equity returns, though the direct magnitude depends on affected payout levels.