In the News: China Ends Foreigner Dividend Tax Exemption; AI Model Damage Conviction; and Outbound Investments via Hong Kong

China applies a 20% individual income tax to dividends earned by foreign individuals from foreign enterprises | Beijing’s first ever criminal trial over AI model damage results in imprisonment | Lawyers explain how China’s new outbound investment rules make Hong Kong less appealing

By Jeffrey Tse

In the News: China Ends Foreigner Dividend Tax Exemption; AI Model Damage Conviction; and Outbound Investments via Hong Kong

New 20% Rate Replaces 1994 Tax Exemption Policy

China's Ministry of Finance and State Taxation Administration announced on September 1, 2026, that the country will end the individual income tax exemption on dividend income earned by foreign individuals from foreign-invested enterprises.

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