China to scrap long-standing tax relief for foreign dividend earners
Starting September 1, China will begin levying a 20% personal income tax on dividends and bonuses that foreign nationals earn from companies with foreign investment. This tax waiver had been in place since 1994, originally created to help draw in international capital during the country's economic reforms. According to Chinese analysts, the move is intended to create a level playing field for every participant in the market and does not indicate a shift toward stricter rules for foreign investors.