China scraps dividend tax for long-term investors

  • Chinese investors holding a stock for more than one year will be exempted from a five-percent dividend tax from Tuesday.

    Those who have held a stock for one month or less will have to pay 20 percent of the dividend they receive as income tax when they sell the stock, the finance ministry said in a statement jointly released with the country's taxation authority and the securities regulator.

    People who have held a stock for over one month to one year will have to pay a 10 percent dividend tax when they sell the stock, reported Peoples Daily citing the statement.

    This move is part of the government's efforts to promote long-term investment following a stock market rout since mid-June. (Source: IANS)