China Ends Dividend Tax Exemption for Foreign Individual Investors

Chinese residents in Denmark face new tax rules on Chinese company dividends. China is ending its long dividend tax exemption for foreign individuals. The change takes effect on September 1, 2026. Dividend distributions to foreign individual shareholders will face a standard 20 percent tax rate.

China's Ministry of Finance issued Announcement 2026 No. 27 detailing the policy shift. The State Taxation Administration also jointly published the official document. The rule applies to dividends from foreign-invested enterprises in China. This policy terminates a tax exemption that lasted 32 years.

Investors in Copenhagen and across Scandinavia must adjust their cross-border tax plans. Business owners should review corporate profit distribution schedules before September 2026. Taxpayers may need to examine relevant double-taxation treaties with Denmark and Sweden. According to China Briefing, affected individuals should prepare for these tax adjustments.