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    Living in Guangdong> Useful Info> Study

    No Exemption of Income Tax on Dividend for Foreigner

    2013-April-12       Source: Newsgd.com

    In February, 2013, Opinion on Furthering Allocation System Reform (“Opinion”) was approved and issued. The Opinion not only calls for reforms on primary distribution and secondary distribution, but also makes changes to the foreigner’s income gained in China.

    In February, 2013, Opinion on Furthering Allocation System Reform (“Opinion”) was approved and issued. The Opinion not only calls for reforms on primary distribution and secondary distribution, but also makes changes to the foreigner’s income gained in China.

    The Opinion will remove the exemption of income tax on dividend and bonus for foreigners. After the removal, foreigners will be treated as national in terms of dividend and bonus gained from foreign invested enterprise. Income tax at the rate of 20% will be applicable to both domestic nationals and foreigners.

    (This information is provided by Lawyer Kelly Xie from Guangdong KaiTong Law Firm in friendship. It is not any legal opinion or legal grounds addressed to any organization or individual. For inquiry, please contact Kelly via email at Kelly_xie@ktlf.com.cn or by phone on 13926185641.)

    Editor: Olivia

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