China Ends 30-Year Dividend Tax Exemption for Foreign Investors

Foreign investors living in Copenhagen face a new Chinese tax rule. China is ending its 30-year tax exemption on dividends earned by foreign individuals. Starting September 1, 2026, foreign investors will pay a 20 percent dividend tax.

The change comes from Announcement No. 27 of 2026. China’s Ministry of Finance and State Taxation Administration published this rule. It applies to profits from foreign-invested enterprises in China.

Paying companies in China must hold back the tax automatically. They have 15 days to send the tax payment to the tax authorities.

This policy change affects cross-border tax planning for foreign investors living abroad. South China Morning Post reported this official policy announcement.