Dividend income is generally taxed at 20% unless otherwise provided for in the applicable income tax treaty. Effective September 2015, dividend income derived from shares traded on the Shanghai and Shenzhen Stock Exchanges is entitled to 50% or 100% tax reduction depending on the length of holding.
Interest on government bonds and finance bonds issued by the Chinese Government, as well as bank deposit interest income, is currently exempt from IIT.
Income of diplomatic representatives, consuls, and other personnel of foreign embassies and consulates is also exempt from IIT.
China's domestic law states that those foreign individuals who stay in China for no more than 90 days within a tax year may be exempted from IIT on their China-sourced employment income provided such income is paid or borne by a non-China entity (see the Residence section for more information).