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Dividend Tax Rate
Dividends distributed by Foreign Invested Enterprises, B Share Companies, and H Share Companies, to foreign investors, are not subject to tax. However, 10% of net profits must be retained within the company as development funds, in China, until 50% of the Registered Capital is accumulated. Once 50% of the Registered Capital is accumulated, all profits after tax may be repatriated. (Although numerous tax treaties with foreign countries exist, they are of no bearing on dividends from China.)
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