China to cut dividend taxes for long-term shareholders

[HONG KONG] China will remove personal income tax on dividends for shareholders who hold stocks for longer than a year, the ministry of finance, the securities regulator and the tax bureau said late on Monday.

Personal income tax on dividends will be reduced by 50 per cent if shareholders hold shares for less than a year but longer than a month, while full tax payment is required for shareholders who hold shares for less than a month, said the statement posted on the government's website.

The new measures will come into effect on Sept 8, the statement added.

REUTERS