China to cut dividend taxes for long-term shareholders

Hong Kong

CHINA said on Monday it would remove personal income tax on dividends for shareholders who hold stocks for more than a year, in a move aimed at encouraging longer-term investment in equities as opposed to short-term speculation.

The government also said it would halve the tax on dividends for those holding shares between a month and a year and that the changes would come into effect on Tuesday.

Full tax payment will be required for shareholders …