1. Individual shareholders need to pay personal income tax for dividends.
According to the Individual Income Tax Law, interest, dividends and bonuses are subject to individual income tax at a proportional rate of 20%. However, dividends received by individual shareholders from listed companies can be taxed by half. Article 1 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Relevant Policies of Individual Income Tax on Dividends and Dividends stipulates that the income from dividends and dividends obtained by individual investors from listed companies shall be temporarily reduced by 50% and included in the personal taxable income, and individual income tax shall be levied according to the current tax law.
2. Dividends obtained by foreign individuals from foreign companies are not subject to personal income tax.
Item 8 of Article 2 of the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China on Several Policy Issues concerning Individual Income Tax stipulates that dividends and bonus income obtained by foreign individuals from foreign-invested enterprises shall be temporarily exempted from individual income tax. At the same time, China's tax law also stipulates that dividends obtained by foreign individuals from domestic listed companies are not taxed. The Letter of State Taxation Administration of The People's Republic of China on Tax Issues Related to Foreign Individuals Holding Stocks of Domestic Listed Companies clarifies that foreign individuals holding B-shares or overseas stocks (including H-shares) are temporarily exempt from personal income tax on dividends (bonuses) obtained from domestic enterprises that issue B-shares or overseas stocks.
3. After-tax profit dividends of resident enterprises are not subject to enterprise income tax.
The second paragraph of Article 26 of the Enterprise Income Tax Law stipulates that the income from equity investment such as dividends and bonuses among qualified resident enterprises is tax-free income. Article 3 stipulates that it is also tax-free income for a non-resident enterprise to set up an institution or place in China and obtain dividends, bonuses and other equity investment income from a resident enterprise actually related to the institution or place. Dividends, bonuses and other equity investment income between qualified resident enterprises refer to the investment income obtained by resident enterprises directly investing in other resident enterprises. The dividend, bonus and other equity investment income referred to by it does not include the investment income obtained by continuously holding shares issued by resident enterprises and listed and circulated for less than 65,438+02 months. In other words, it is taxable for an enterprise to hold a dividend of less than 12 months in a listed company, and other dividends are unnecessary.
4. Non-resident enterprises should pay enterprise income tax on dividends.
In the past, the after-tax profits made by non-resident enterprises from enterprises in China did not need to be taxed. After the implementation of the new enterprise income tax law, the dividends obtained by non-resident enterprises need to be paid at the tax rate of 10%. Although the tax rate stipulated in the tax law is 10%, if the country or region where the non-resident enterprise is located has signed a tax treaty with China, the agreed tax rate can be implemented according to the agreed tax rate.
What is the calculation method of dividends to shareholders?
1. Individual shareholders shall pay personal income tax at 20% of the dividends due.
Dividends received from listed companies can be taxed at half.
3. No matter whether the dividends received by foreigners are listed companies or not, there is no need to pay taxes.
4. Income from investment dividends obtained by resident enterprises from other resident enterprises is tax-free.
5. Shareholders of overseas non-resident enterprises receive dividends from China resident enterprises in 2008 and beyond, and pay enterprise income tax at the rate of 10%.
How to pay taxes on year-end shareholder dividends in small-scale enterprises?