[Foreign individuals must pay individual income tax on dividends obtained from foreign-invested enterprises] On September 1, the Ministry of Finance and the State Administration of Taxation issued an announcement clarifying that from September 1, foreign individuals’ dividend income obtained from foreign-invested enterprises shall pay individual income tax at a rate of 20%. In order to promote reform and opening up and attract foreign investment, China has temporarily exempted individual income tax on dividends received by foreign individuals from foreign-invested enterprises since 1994. With the establishment of a unified national market, China is gradually clearing up and standardizing preferential tax policies. Industry insiders said that canceling the policy of exempting foreign individuals from personal tax on dividends obtained from foreign-invested enterprises will help maintain a fair and unified tax system, promote the construction of a unified national market, plug tax loopholes, and better play the role of tax regulation. (Xinhua News Agency)