TMTPOST -- China's Ministry of Finance and the State Taxation Administration have announced that foreign individuals will need to pay individual income tax at a rate of 20% on dividend income obtained from foreign-invested enterprises, starting from September 1. To promote reform and opening-up and attract foreign investment, China has exempted foreign individuals from paying individual income tax on dividend income received from foreign-invested enterprises since 1994. With the establishment of a unified market, China is standardizing tax incentive policies. The end of the exemption from individual income tax is beneficial for maintaining fairness and unity in the tax system and closing tax loopholes.