Foreign investors get tax dividend boost

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    clpstaff &clp articles

    A new Circular has lowered withholding tax in China, but foreign companies still need to comply with strict regulations from the State Administration of Foreign Exchange

    The State Administration for Taxation (SAT) released Circular 30 (关于认定税收协定中“受益所有人”的公告) on June 29 and it came into effect on July 1.

    The Circular reduces the burden for determining beneficial owners. It states that, when it comes to passive income under international tax laws, the dividend should be the main form of passive income compared with other royalties and interest.

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