Date 2018-09-17
Title Starting from Jan. 1st, 2018, the Dividend Distributed or the Surplus Earnings Distributed to Non-resident is Withheld at 21% of the Amount.

In accordance with the amended provisions of Income Tax Act, and in order to reduce the gap of dividend taxation between domestic and foreign investors and to promote taxation fairness, the regulation of Article 3 in Standards of Withholdings Rate for Various Incomes has been amended on Dec. 29th, 2017.  Starting from Jan. 1st, 2018, the withholding rate of dividend distributed to non-resident has been raised from 20% to 21%.
The National Taxation Bureau reminded tax withholders to confirm the identity of shareholders before paying dividend. According to paragraph 2 of Article 92 in Income Tax Act, for non-resident shareholders, tax withholders shall pay the taxes withheld to National Treasury within 10 days after withholding, file the withholding statement to the tax collection authorities, and furnish the taxpayer with the withholding statement, to avoid from being fined for shortage of withholding tax. 

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