On February 3, 2013, the State Council approved the Several Opinions on the Further Reform of the Income Distribution System (the “Opinions”) drafted by the National Development and Reform Commission, the Ministry of Finance and the Ministry of Human Resources and Social Security, and forwarded the Opinions to the provincial level governments and the ministries and commissions of the State Council. Article Fourteen of the Opinions states that the preferential treatment exempting foreign individuals from individual income tax on dividends and bonuses income obtained from foreign invested enterprises (“FIE”) shall be abolished (the “Proposed Reform”).