1, if the shareholding exceeds 1 year, no dividend tax will be charged;
2. If the shareholding period is from 1 month to 1 year, a dividend tax of 20% will be levied, but the temporarily reduced portion will be included in the taxable income at 50%;
3. If it is held for less than one month, a dividend tax of 20% will be levied.
Calculation method of stock dividend tax:
1. Stock dividend tax refers to the tax that needs to be paid when dividends are distributed in the stock market. Stock dividends include cash dividends, share delivery and capital increase, of which 10% is charged for both except capital increase.
2. Dividends with a shareholding period exceeding 1 year are temporarily exempt from personal income tax. For those who hold shares for 1 month to 1 year, the tax burden is 10%; for those who hold shares for less than 1 month, the tax burden is 20%. Therefore, the longer individual investors hold shares, the lower the personal income tax burden of dividends;
3. Calculation of holding time: the time from buying to selling is 1 year before the ex-dividend date, and it is tax-free when selling on the ex-dividend date. If you buy less than one year before the ex-dividend date but don't sell it, you can get enough time for one year, and this part is also tax-free.
To sum up, dividend tax refers to the taxation of dividends of listed companies. For long-term investors for more than one year, dividends are temporarily exempted from personal income tax; Double dividend tax is levied on investors who buy and sell short-term within one month.
Legal basis:
Article 2 of the Individual Income Tax Law of People's Republic of China (PRC)
The following personal income shall be subject to personal income tax:
(1) Income from wages and salaries;
(2) Income from remuneration for labor services;
(3) Income from remuneration;
(4) Income from royalties;
(5) Operating income;
(6) Income from interest, dividends and bonuses;
(7) Income from property lease;
(8) Income from property transfer;
(9) Accidental income.
Individual residents who obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax according to the tax year; Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly or itemized basis. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.