Tax
China repeals the historical tax exemption on dividends paid to foreign individuals: key implications for Spanish investors
China has ended a long-standing tax exemption on dividends for foreign individual investors and will now impose a 20% withholding tax. Spanish tax residents should rely on the Spain-China tax treaty to mitigate the tax impact and reduce the risk of double taxation.Tax certainty redefined: Shanghai formalizes advance tax ruling measures
Shanghai has moved from a pilot approach to a formally implemented stage with the introduction of a new normative document for advanced tax rulings (ATR). Building on the experience of the earlier trial measures, the new measures expand the eligible scopes and applicants of ATR, refine the application procedures and clarify the binding effect of the ATR.New Tax Preferential Policy for Overseas Investors in China: Tax Credit from Dividend Reinvestment
The Ministry of Finance, the State Administration of Taxation (SAT) and the Ministry of Commerce have jointly released announcement on the tax credit policy for direct investment by overseas investors using distributed profits (Tax Credit Policy) on June 27, 2025, in order to boost the economy, further encourage overseas investments, and promote continuing operations within China on a long-term basis. The Tax Credit Policy provides the overseas investors tax credit on distributed profits that are re-invested directly in China by satisfying certain conditions.China: The State Administration of Taxation expands the circumstances of issuing Tax Residency Certificate
The Chinese current rules allow issuing a Tax Residency Certificate solely for claiming tax treaty benefits. While this is the primary purpose, there are various legal, financial, and regulatory reasons for Chinese tax residents to provide this certificate abroad. Effective April 1, 2025, the new rules will broaden the circumstances for issuance, benefiting outbound investments by Chinese investors, foreign-invested companies, and foreign individuals.